Rich Dad Poor Dad


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Rich Dad Poor Dad

  1. 1. RICH DAD Poor Dad By :Robert Kiyosaki Sharon Lecher C.P.A Presented by: Pradeep Prabhuchanderkar EMBA05 – Roll No.16
  2. 2. What Rich Teach Their Kids About Money That Poor & Middle class Do Not !
  3. 3. “ The poor & middle class work for money . “ The rich have money work for them ”. THE RICH DON’T WORK FOR MONEY .
  4. 4. Poor Dad Vs Rich Dad <ul><li>The love of Money is root of all Evil </li></ul><ul><li>I can’t afford it. </li></ul><ul><li>Study hard so that you can find a good company to work for </li></ul><ul><li>Money Play it safe, Don’t take Risk </li></ul><ul><li>The lack of Money is Root of all Evil </li></ul><ul><li>How can I afford it ? </li></ul><ul><li>Study Hard so that you can find good company to Buy. </li></ul><ul><li>Money- Don’t play safe, Play it Smart. </li></ul><ul><li>Learn to manage Risk. </li></ul>
  5. 5. Poor Dad Vs Rich Dad <ul><li>Depends on company/Government for pay hike, medical insurance, retirement plan etc. </li></ul><ul><li>I am not interested in Money </li></ul><ul><li>Our home is our largest investment and our greatest asset. </li></ul><ul><li>Believes in total financial self reliance. </li></ul><ul><li>Money is Power. </li></ul><ul><li>My house is a liability and if your house is your largest investment you are in Trouble. </li></ul>
  6. 6. There is a need. <ul><li>Study Hard, Get Good Grades and you will Find a high paying job with Great Benefits (Safe & Secure Jobs ) </li></ul><ul><li>RAT RACE </li></ul><ul><li>Study Hard, Graduation, Post Graduation, Job, Marriage, Children,Promotions/Jobchange,House, Cars, </li></ul><ul><li>Good School, Overtime/Part Time Jobs, Vacations ………… </li></ul><ul><li>Fast Track </li></ul><ul><li>Bill Gates,Michale Jordon, Madonna….. </li></ul>
  7. 7. There is a need. <ul><li>Study Hard, Get Good Grades and you will Find a high paying job with Great Benefits (Safe & Secure Jobs ) </li></ul><ul><li>IS A BAD ADVICE </li></ul><ul><li>The world has changed & Changing very fast and current educational system has failed to cope up with the change . </li></ul><ul><li>Education is the foundation of success so are the Financial skills & Communication skills. </li></ul>
  8. 8. There is a need. <ul><li>Financial Intelligence is the Mental Process via which we solve our Financial Problems. </li></ul><ul><li>But there are different set of rules with which Rich Plays compared to Poor & Middle class. </li></ul><ul><li>Example : Down Sizing/ Right Sizing of The Company. </li></ul>
  9. 9. Why Teach Financial Literacy ? <ul><li>Retirement : We can work or Not Work and our wealth grows automatically staying way ahead of inflation. </li></ul><ul><li>In life it is not important how much money you make, It is how much Money you keep. </li></ul><ul><li>Assets : Puts Money in your Pocket. </li></ul><ul><li>Liability : It is something that takes Money out of a Pocket. </li></ul><ul><li>Wealth : Persons ability to survive so many days Forward . </li></ul>
  10. 10. Poor /Middle Class Financial Statement Liabilities Home, Consumer Loans, Credit cards Assets Expenses Taxes, Mortgage Fixed Expenses Income Pay Check.
  11. 11. Rich Class Financial Statement Liabilities Assets Stocks, Bonds, Real Estate,IPR Expenses Income Dividends, Interest, Rental Income
  12. 12. Why Teach Financial Literacy ?88997777 <ul><li>The way to get Richer is to increase the Cash Flow from the Assets, keep the expenses less than the cash Flow generated from these assets. </li></ul><ul><li>Reinvestment process continues with more and more income from Sources other than the Physical labor. </li></ul>
  13. 13. Mind your Own Business <ul><li>Profession & Business : McDonald Story </li></ul><ul><li>Financial Struggle is often directly the result of People working all their life for some one else. </li></ul><ul><li>Owner or Share Holders of the Company </li></ul><ul><li>Government ( Taxes ) </li></ul><ul><li>Banks ( Repayment of Loans ) </li></ul><ul><li>Business revolves around the Asset column . </li></ul>
  14. 14. History of Taxes & Power of Corporation <ul><li>Robin Hood : Collect it from Rich & Distribute it to the Poor. </li></ul><ul><li>Financial I.Q . </li></ul><ul><li>It is made up of knowledge from Four Broad Areas of Expertise . </li></ul><ul><li>Accounting : Financial Literacy is the ability to read & understand financial statements. </li></ul><ul><li>Investing : Science of Money MAKING Money </li></ul><ul><li>Understanding Market : Technical aspect of science of Supply & Demand </li></ul><ul><li>Law : To make advantages from various provisions in the law for Growth of the Organization. </li></ul>
  15. 15. The Rich Invent Money <ul><li>Example : Graham Bell .Formation Of AT & T. </li></ul><ul><li>Every Person is Genius ,but excessive Fear & Self Doubt are the greatest Destructor of Personal Genius. </li></ul><ul><li>Why Develop Financial I.Q. ? </li></ul><ul><li>In today's changing world Job security CAN NOT be taken for granted. </li></ul><ul><li>Hence we Must have more OPTIONS. </li></ul><ul><li>MONEY IS NOT REAL </li></ul><ul><li>In Today's Information Age Just Ideas and agreements are exchanged to MAKE MONEY. </li></ul>
  16. 16. The Rich Invent Money <ul><li>Financial Intelligence. </li></ul><ul><li>To develop Financial Intelligence fallowing 3 skills needs to be Developed. </li></ul><ul><li>Skill to apply your mind , what others miss to see with their Eyes. </li></ul><ul><li>Skill to raise Money :Investing is not buying. It is more case of knowing. </li></ul><ul><li>Skill to choose your advisors. </li></ul>
  17. 17. Work To Learn – DON’T WORK FOR MONEY <ul><li>Specialization narrows your options and hence your Earning </li></ul><ul><li>Abilities. </li></ul><ul><li>The main management skills needed for Success are, </li></ul><ul><li>The management of CASH FLOW. </li></ul><ul><li>The management of Systems ( Including yourself & time with family) </li></ul><ul><li>The management of People. </li></ul><ul><li>Skill of selling & Marketing </li></ul><ul><li>Communication skill and Most importantly, </li></ul><ul><li>We need to be a good Teacher. </li></ul><ul><li>To be truly Rich , we need to be able to give as well as to receive. </li></ul>
  18. 18. Overcoming Obstacles <ul><li>The five main reasons Financially literate people struggle to became Financially Independent are, </li></ul><ul><li>Fear of loosing Money : </li></ul><ul><li>Cynicism </li></ul><ul><li>Laziness </li></ul><ul><li>Bad Habits </li></ul><ul><li>Arrogance </li></ul>
  19. 19. Overcoming Obstacles <ul><li>To Overcome </li></ul><ul><li>Fear of loosing Money : </li></ul><ul><li>A) Start Early </li></ul><ul><li>B) Plan Your Retirement ( Hire Financial Planner ) </li></ul><ul><li>C) Be Focused </li></ul><ul><li>Winning means being unafraid to loose. </li></ul><ul><li>2) Cynicism : Unchecked doubts & Fear creates a cynic. </li></ul><ul><li>Cynic Criticizes, Winners Analyzes. </li></ul><ul><li>3) Laziness ; Cure for laziness is to induce a little GREED. </li></ul><ul><li>A little greed to have better life. </li></ul>
  20. 20. Overcoming Obstacles <ul><li>To Overcome, </li></ul><ul><li>4) Bad Habits : Developing Good Money habit is very important. </li></ul><ul><li>Example : Paying bill on the LAST DAY of due Period is </li></ul><ul><li>A GOOD HABIT. </li></ul><ul><li>Paying You First Is A GOOD HABIT. </li></ul><ul><li>5) Arrogance : Arrogance is defined as an EGO + Ignorance. </li></ul><ul><li>Arrogance always makes you to loose Money. </li></ul><ul><li>Start Educating yourself by finding an Expert or a book on a subject where you know you are ignorant. </li></ul>
  21. 21. Getting Started <ul><li>1) You need a reason greater than Reality. </li></ul><ul><li>a) I don’t want to work whole of my life. </li></ul><ul><li>b) I don’t want to be Employee. </li></ul><ul><li>C) I want control over my Time & Life </li></ul><ul><li>d) I want Money to work for Me. </li></ul><ul><li>2) I choose daily. </li></ul><ul><li>I choose to be rich & I make that choice Every Day. </li></ul><ul><li>I choose to invest in Education & welcomes NEW Ideas. </li></ul><ul><li>3) Choose Friends Carefully. </li></ul><ul><li>Choose Rich friends & Poor Friends carefully. </li></ul><ul><li>Rich Friends to learn about inside trading, & From poor friends </li></ul><ul><li>You can learn What not to Do. </li></ul>
  22. 22. Getting Started <ul><li>4) Master a formula and then NEW ONE. </li></ul><ul><li>In changing world learning New formula Quickly is the secrete of Success. </li></ul><ul><li>5) Pay Yourself First. </li></ul><ul><li>A) Don’t get into large Debt Position. </li></ul><ul><li>B) When you come up short, Don’t dip into your savings or investment. </li></ul><ul><li>Let pressure inspire your Financial intelligence to come up with new ways of Making Money to pay your bills. </li></ul><ul><li>6) Pay your brokers well : Take good care of those people who help you to make money work for you. </li></ul>
  23. 23. Getting Started <ul><li>7) Be An Indian Giver : </li></ul><ul><li>How fast do I get my Money back? </li></ul><ul><li>So in any investment recover your principle as quickly as possible </li></ul><ul><li>8) Assets buys luxuries : </li></ul><ul><li>Assets generates Income, Income buys Luxury items. </li></ul><ul><li>The need for Heroes : When it comes Investing ,too many people make it sound hard. Instead find heroes (Experts )who will make it look easy. </li></ul><ul><li>Teach and you shall receive it : Teach , what you know to others who needs it and you will receive new ideas & finer distinction. </li></ul>
  24. 24. To Do’s <ul><li>Take Actions </li></ul><ul><li>DON’T PLAY IT SAFE </li></ul><ul><li>PLAY SMART </li></ul>
  25. 25. Who Said it? <ul><li>The book that rocked THE FINANCIAL WORLD! J.P. Morgan declares “ Rich Dad Poor Dad, a must read A Must read for Millionaires. – THE WALL STREET JOURNAL. </li></ul><ul><li>The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money …. But never learn to have money work for them. – Robert T. Kiyoaski. </li></ul><ul><li>“ I love my children & want to ensure they get the best education possible! Traditional schooling, while very important, is no longer enough, we all need to understand money and how it works.” – Sharon Lechter. </li></ul>
  26. 26. <ul><li>Thanks </li></ul>