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Rich dad poor dad


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total summary of the book and its essence

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Rich dad poor dad

  1. 1. RICH DAD POOR DAD By Robert T.Kiyosaki P.VENKATA RAO
  2. 2. PUBLISHED: 1997 Robin toru kiyosaki is an Japanese American investor, businessman self-help author, motivational speaker, financial literacy activist and occasional financial commentator.
  3. 3. INTRODUCTION  Does orthodox education provides knowledge on financial education?  Why the rich get richer and poor gets poorer?  Poor/Middle : I work for money! Rich : Money work for me!
  4. 4. Financial education Lessons! #1 The Rich Don't Work for Money #2 Why Teach Financial Literacy? #3 Mind Your own Business #4 The History of Taxes and the Power of Corporations #5 The Rich Invent Money #6 Work to Learn Don't Work for Money
  5. 5. #1 The Rich don’t work for money POOR&MIDDLE RICH work for money money work for them Fear and greed use emotions to cause ignorance think and poverty
  6. 6. #2 Why teach financial literacy?  Golden rule to be rich: know the difference between the asset and the liability, and buy assets.  Asset :Puts money into your pocket.  Liability : Takes money from your pocket.
  7. 7. Cash flow of poor, middle and rich • The poor only have assets. • The middle class buy liabilities they think are assets. • The rich buy assets.
  8. 8. #3 Mind your business Mind your own business. i.e. while excelling with your qualifications and keeping your day time job, also look for other opportunities elsewhere to accumulate wealth Do not depend only on a salaried job. Some sources of unearned income: • Dividends • Interest Payments • Rent • Royalties
  9. 9. #4 The History of Taxes and the Power of Corporations  Robin Hood : Collect it from the rich and distribute it to the poor. Financial IQ It is made up knowledge from four broad areas of expertise • Accounting : financial literacy is the ability to read and understand financial statements. • Investing : science of money MAKING money • Understanding market : technical aspect of science of supply and demand • Law : To make advantage from various provisions in the law for growth of the organization.
  10. 10. #5 The Rich Invent Money  Example : graham bell formation of AT&T  Every person is a genius , but excessive fear & self doubt are the greatest destructors of personal genius.  Financial genius requires both technical knowledge as well as courage. If fear is too strong, the genius is suppressed.  The person who has the most timely information owns the wealth.  Get creative and take calculative risks
  11. 11. #6 Work to Learn Don't Work for Money  Job is an acronym for ‘Just Over Broke’.  The main management skills needed for success are:  1. The management of cash flow  2. The management of systems (including yourself and time with family).  3. The management of people.  The most important specialized skills are sales and understanding marketing.  To be truly rich ,we need to able to Give and as well as to receive.
  12. 12. Overcoming Obstacles  Five Obstacles to Financial Independence 1. Fear 2. Cynicism 3. Laziness 4. Bad Habits 5. Arrogance
  13. 13. 10 steps to awaken your financial genius: The power of spirit. The power of focus. The power of myth. The power of giving. The power of choice. The power of association. The power of good advice. The power of self discipline. The power of learning quickly. The power of getting something for nothing.
  14. 14. Why you should read ? Broaden your vision Redefine your views about money How to start and run a company In short , if you really have dreams to touch the sky , this book is highly recommended