This document summarizes key points from the book "Rich Dad Poor Dad" by Robert Kiyosaki. It discusses the different mindsets of the "rich dad" and "poor dad" regarding money, assets, liabilities, and financial literacy. The rich see money as a means to gain more money through investments, businesses, and assets, while the poor and middle class focus on income through jobs and accumulate liabilities. It also provides insights on developing financial intelligence and the importance of cash flow management, owning assets that generate income, and using tools like corporations to maximize wealth.

1. Summary:
Rich Dad Poor Dad
By G-ioT; Gurchran

2. Few Words:
 We being human are best got skills knowledge and acquired experience from our
parents especially from Dad.
 Robert have us had a chance to review our hitherto knowledge by introducing how
he had two fathers (his real dad and his best friends dad), and how they both
challenged his perception about the money cycle and investment.
 This Book demonstrates that you don’t need to earn a high income to be rich
 Work Hard for earning money is challenged by the thought of “Have money work
for you.”

3. The Child story:
 Having first time earner, it was very difficult for a kid to cut short comic reading
time for earning, however, the in return money as ranged from 5cents an hour to 5
dollar an hour, made huge impact upon the thought process of this kid, that how
on the court value propositions changes as an individual. Whereas, Roberts second
dad was in conscious doing all these little tricks to train these two kids for the
money game direct link with the thought processes.
 This intern made two kids learn, Money comes and goes, but if you have the
education about how money works, you gain power over it and can begin building
wealth

4. FEAR and GREED
 People’s lives are forever controlled by two emotions: fear and greed
 So many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job for
eight hours a day.
 They earn either fulfill their greed and ends up unsatisfied or in the fear of the
having lost all the money, the more they earn more fearful they become. And just
become a part of the Rat race.

5. Understand the Difference:
Assets
 Is something that puts
money in my pocket
Liabilities
 Is that takes money out of
my pocket

6. Poor Dad Favorite Statements:
 I am not interested in money
 I can’t afford it
 I will never be wealthy
 Investing is risky
 Money isn’t everything
 I am too busy making a living to play with my kids

7. Financial Statement
 Poor Middle Class financial statement  Rich Class financial Statement
Income
Dividends
Interest
Rental Income
Expenses
Assets
Stocks
Bonds
Real Estate
IPR
Liabilities
Income
Pay Check
Expenses
Taxes
Mortgage
Fixed Expanses
Assets Liabilities
Home
Consumer Loan
Credit Cards

8. Big Learnings regarding mindsets
 The poor and the middle-class work for money. The rich have money work for
them.
 It’s not how much money you make that matters. It’s how much money you keep.
 Rich people acquire assets. The poor and middle class acquire liabilities that they
think are assets.
 Financial aptitude is what you do with money once you make it, how you keep
people from taking it from you, how to keep it longer, and how you make money
work hard for you.
 The single most powerful asset we all have is our mind

9. Some important statements:
 Thinking that a job makes you secure is lying to yourself.
 Intelligence solves problems and produces money.
 You must know the difference between an asset and a liability, and buy assets.
 An asset puts money in your pocket. A liability takes money out of your pocket.
 Illiteracy, both in words and numbers, is the foundation of financial struggle.
 Money often makes obvious our tragic human flaws, putting a spotlight on what
we don’t know.
 Cash flow tells the story of how a person handles money.
 Most people don’t understand why they struggle financially because they don’t
understand cash flow.

10. Some important statements: (contd.)
 The number-one expense for most people is taxes.
 Higher incomes cause higher taxes. This is known as “bracket creep.”
 More money seldom solves someone’s money problems.
 The fear of being different prevents most people from seeking new ways to solve
their problems.
 A person can be highly educated, professionally successful, and financially illiterate.
 Many financial problems are caused by trying to keep up with the Joneses.
 Once you understand the difference between assets and liabilities, concentrate
your efforts on buying income-generating assets.
 The problem with simply working harder is that each of these three levels takes a
greater share of your increased efforts. You need to learn how to have your
increased efforts benefit you and your family directly.

11. According to Kiyosaki, real assets fall into the
following categories:
 Stocks
 Bonds
 Income-generating real estate
 Notes (IOUs)
 Royalties from intellectual property such as music, scripts, and patents
 Anything else that has value, produces income or appreciates, and has a ready
market
Businesses that do not require my presence I own them, but they are managed or run
by other people. If I have to work there, it’s not a business. It becomes my job

12. Kiyosaki reminds people that financial IQ is
made up of knowledge from four broad areas of
expertise:
 Accounting
 Investing
 Understanding markets
 The law
“A corporation earns, spends everything it can, and is taxed on anything that is left. It’s
one of the biggest legal tax loopholes that the rich use.”
“Garret Sutton’s books on corporations provide wonderful insight into the power of
personal corporations.”

13. The main management skills needed for
success are:
 Management of cash flow
 Management of systems
 Management of people
“The most important specialized skills are sales and marketing.”
“To be truly rich, we need to be able to give as well as to receive.”
“Giving money is the secret to most great wealthy families.”
“The primary difference between a rich person and a poor person is how they manage
fear.”

14. “
”
Whenever you find yourself avoiding
something you know you should be doing,
then the only thing to ask yourself is, ‘What’s
in it for me?’ Be a little greedy. It’s the best
cure for laziness.
Warm Regards
Gurchran S Dhuna