1. Individual Assignment
Summary of Rich Dad Poor Dad
Submitted To: Submitted By:
Dr. AmanSrivastava SiddharthTripathi
PGFA 1147
Section A
2011-13

2. Summary: Rich dad poor dad
This book describes that for an individual to be wealthy, he must aim to own the system or
means of production, rather than work for another individual. Author emphasizes that financial
intelligence is the most powerful asset. It is very important for an individual that he will be able
to see the difference between an asset and a liability; in fact it is the more concrete application of
learning what’s right and what’s wrong. Generating a string of expenses is wrong, building assets
is right.
The one who earn and then pay taxes on what they earn, corporations earn, spend what they want
to spend, and pay taxes on what’s left. Corporations, therefore, hold a certain degree of power.
The rich know how to use this power, the poor don’t.
The author also believes that true luxuries are experienced when they are the outward
manifestations of intelligent investing and asset building. He cites the example of his wife
purchasing a Mercedes Benz because it was the car she liked and worked hard to be able to
purchase it. The author cautions however about keeping up with the Joneses and getting into debt
because of this human frailty.
Fear, laziness, cynicism and arrogance are to be blamed for most of human inaction.
Lesson 1. The Rich Don’t Work for Money
This chapter is all about the fact that the rich create ‘systems’ and have other people run the
system for them. They do not actually work for money. However do not get confused. They do
work and they do make money but they do not sell their time for money.
Lesson2. Learning Financial Literacy
The difference between rich people and poor has to do with their financial education. 90% of the
population is not even aware that there is another way to earn money other than by being an
employee. The rich are lucky because they are taught this by the parents. This book gives people
access to the same important lessons.

3. Lesson3. Mind your Own Business
one other big difference between the rich and the poor is the fact that rich people own businesses.
Poor people work in businesses. Building a business can be done by anybody with drive and
determination, however these skills are not taught in school. You also get many tax advantages
through having a business. More on that below.
Lesson4. The Power of Corporations
By owning a corporation you get access to tax breaks that are simply not available to employees.
The reason companies pay less tax is because they are helping the economy and creating jobs.
By owning a corporation you also get asset protection. If anything were to happen to your
business it would be classed as a separate entity and your house would be safe from
repossession.
Lesson5. The Rich Invent Money
learning the world of business can really be a big eye opener. Once you have strong selling skills
the world really is your oyster. You really can create money. Richard Branson, when told they
were no more flights one time went on to sell several tickets himself for an alternative flight and
paid for his new ticket through other people. Opportunities really are all around you.
Lesson6. Work to Learn Vs Don’t Work to Earn
it is essential that you treat your current job as a chance to learn the skills that you will need to
succeed in business and not just as a place to just earn bread and butter. One of the big mistakes
people make when they first start transitioning to the business sector is accepting that it can take
longer than one think.