# Rich Dad Poor Dad Author: Robert Kiyosaki Created By: Sandro Lic Last Edited: Apr 15, 2020 7:05 PM Tags: Finance Chapter 1: The rich don't work for money - Don't live paycheck to paycheck - Don't let fear and greed control you (don't fear of not having money and if you do have money don't let greed take over) - Instead of reacting emotionally use your head - The rich have money work for them (1st example: comic book library) --- Chapter 2: Why teach financial literacy - Know the difference between a liability and an asset - It doesn't matter how much money you make what matters is how much you keep - The more you keep the more assets you can acquire - Don't let your expenses grow proportional to your income - Difference between profession and business - Do what you like/love (invest in things you are interested, stay focused) --- Chapter 3: Minding your own business - Minding your own business (keep your goal in mind) - Take your time and invest and build your own business (minding your own business :D) - Know when to buy a luxury items (as rewards/reminder of success) --- Chapter 4: The History of Taxes and the Power Corporations - Business: Earn, Spend, Pay Taxes - Employees: Earn, Pay Taxes, Spend ![](https://i.imgur.com/EiEehbw.jpg =550x) - Financial IQ, the four areas: - Accounting - Investing - Understanding the market - The Law --- Chapter 5: The Rich Invent Money - Self-doubt often suppresses the potential in people - Invest in things you understand and have interests in - Develop your financial IQ for your own interests (to have many options) - Times keep changing, don't cling on to the past and adapt to every new situation - Escrow companies handle all the tenant management - The main skills: - Find an opportunity that everyone else missed - Raise money - Organize smart - Two types of investors: - Buying PC of the shelve - Gathering and researching the components yourself and building it from scratch --- Chapter 6: Work to Learn - Don't Work for Money - "They are one skill away from great wealth." - "Leadership is what you need to learn next... if you're not a good leader, you'll get shot in the back, just like they do in business." - "Rich dad thought it would be best to go broke before 30." - Don't get trapped paying bills ("Job is an acronym for "Just Over Broke.") - Management skills: - Management of cash flow - Management of systems - Management of people - "Often I recommend joining a network-marketing company, also called multilevel marketing, if they want to learn sales skills. (Maybe work in sales) - The better you are at communicating, negotiating, and handling your fear of rejection, the easier life is. - "He knew that to receive money, you had to give money." - Don't specialize in only one area (example pro athlete) --- Chapter 7: Overcoming Obstacles - Fear ("Fear of losing money") - Don't play it too safe - Cynicism ("always seeing the sky come down") - - buyer's remorse makes you lose opportunities - use property managers - Laziness - Counter it with a little bit of greed - Bad habits("develop good money habits") - Arrogance --- Chapter 8: Getting Started - The 10 steps: 1. Find a reason greater than reality: the power of spirit - Find a reason which motivates you, without a reason everything is hard 2. Make good daily choices: the power of choice 3. Choose friends carefully: the power of association - Get insider info, hear about the next boom and crash 4. Master a formula and then learn a new one: the power of learning quickly 5. Pay yourself first: the power of self-discipine - Master the management of: - Cash flow - People - Personal time (A real skill is to manage people smarter/above you) - Defend your assets 6. Pay your brokers well: the power of good advice - Manage and reward who are smarter than you 7. Be an Indian giver: the power of getting something for nothing - Pull out your initial investment 8. Use assets to buy luxuries: the power of focus 9. Choose heroes: the power of myth 10. Teach and you shall receive: the power of giving - Your world is a mirror of you --- Chapter 9: Still Want More? Here Are Some To Do's - Stop doing things that don´t work - Look for new ideas - Find someone who has done what you want to do - Take classes, read, and attend seminars - Make lots of offers (with escape clauses) - Jog, walk, or drive a certain area once a month for 10 minutes - Shop for bargains in all markets - Profits are made in the buying, not in the selling - Look in the right places - Look for people who want to buy first. Then look for someone who wants to sell - Most people look only for what they can afford - Think big - buy in bulk for a better deal (e.g. PCs, also stocks) - Learn from history - ACTION ALWAYS BEATS INACTION --- - The Three Incomes 1. Ordinary earned 2. Portfolio 3. Passive - "Know what kind of income to work hard for, how to keep it, and how to protect it from loss"