2. CHARACTERS
• Poor dad – educated but lacking the street smarts
• Rich dad – very little education (eighth grade), tons of street smarts
• Kiyosaki – the spectator who learns lessons from both but internalizes
only rich dad’s traits
3. THE BIG IDEA
• A job is a short solution to a long term
problem.
• A highly paid slave is still a slave.
• Why climb the corporate ladder when you can
own the ladder?
• You are what you think.
4. RICH DON’T WORK FOR MONEY
• Work to learn
• Some people quit the job because it doesn’t pay
well.
• Others see as an opportunity to learn
something new.
5. WHY TEACH FINANCIAL LITERACY??
• Understand the difference between asset and
liability.
• Concentrate you efforts on buying income
earning asset.
• Focus on keeping expenses and liability at
minimum.
6. MIND YOUR OWN BUSINESS
• Keep your day job but keep minding your own
business.
• Don’t spend all your wages.
• Build a portfolio of assets.
• Spend later when these asset bring you greater
income.
7. THE HISTORY OF TAXES AND POWER OF
CORPORATIONS
• Use the corporation to shelter yourself from
heavy taxation.
• Do your own research and find out what tax
laws will bring you best advantages.
• Pay yourself first.
8. THE RICH INVENT MONEY
• Make good use of your time and find the best
deals.
• Identify an opportunity everyone else has
missed.
• Two type of investors:
1. Buyers of packaged investment.
2. Professional investor
9. WORK TO LEARN – DON’T WORK FOR MONEY
• Learn skills like PR, marketing and advertising.
• Take a second job if it means learning more.
• Three main management skills:
1. Management of cash flow
2. Management of people
3. Management of systems
10. FIVE OBSTACLES TO FINANCIAL INDEPENDENCE:
• Fear
• Cynicism
• Laziness
• Bad habit
• Arrogance
11. TEN STEPS TO AWAKEN YOUR FINANCIAL GENIUS:
• Find a big dream
• Power of choice
• Chose your friends carefully
• Master a formula. Learn a new one, learn faster.
• Pay yourself first
• Pay your broker well
12. TEN STEPS TO AWAKEN YOUR FINANCIAL
GENIUS (CONT…)
• Buy luxuries last
• Find yourself a role model
• Teach and you shall receive
Editor's Notes
The lesson to get out of the “Rat Race”
Not taught to take risk earlier stay poor
you need financial literacy to be and stay safe
. He points out that McDonald’s may not make the best hamburgers in the world, but owns the “most valuable intersections and streets in America.”
The advantage of a corporation versus that of the individual lies in how corporations pay taxes, according to the author. He makes this point clearly: individuals earn money, pay taxes on that money, and live with what’s left. The corporation, on the other hand, earns money, spends everything it can, and is taxed on anything that’s left
