Art Is Just a Conpirecy Between the Rich and the Art World to Make Poor People Feel Stupid

Rich Dad Poor Dad is Robert Kiyosaki's best-selling book about the difference in mindset between the poor, eye course, and rich. In this Rich Dad Poor Dad book summary, we'll suspension downwardly some of the best lessons Kiyosaki shares to help you get more than financially literate. So, allow'southward dive in.

xx Years… 20/20 Hindsight

Rich Dad'southward Lesson 1: "The rich don't work for money."

In today's world, there'southward never been a more pregnant dissever betwixt the rich and all other income classes. Some economists in California even noticed that about 95% of income gains between 2009-2012 went to the wealthiest people in the world– the one percentage. Thus, showing that the biggest increases in income get to entrepreneurs and investors– not employees.

Rich Dad Lesson: "Savers are losers."

The emphasis on saving is only found in the poor and middle course. However, the reason why savers are losers is that since 2000 there have been 3 massive stock market crashes.

1. Dotcom Crash: 2000.
2. Existent Estate Crash: 2007
3. Banking Crash: 2008

The first 3 crashes of the 21st century stake in comparing to the great crash of 1929. When you look at the data visually, you can run across how large of an impact the crashes were.

Notably, after each stock market crash, the American government and the Federal Reserve Banking company started "printing coin."

Today's interest rates are relatively shut to zero, which is what makes savers losers. And the biggest savers are the poor and middle form.

Rich Dad Lesson: "Your house is not an asset."

When Robert Kiyosaki outset published Rich Dad, Poor Dad in 1997, every publisher who had rejected his book had criticized the lesson regarding a person's house non being an asset. Historically, people believed that your home was the biggest investment you can make.

Nevertheless, it wasn't until 2007 when "subprime borrowers began to default on their subprime mortgages," that people realized that a firm wasn't an asset.

The real estate crash was caused by the rich, non the poor. "The rich created financially-engineered products known as derivatives." Fifty-fifty Warren Buffett hated these, calling them "weapons of mass fiscal destruction." The derivatives were the cause of the housing market collapse. Yet, somehow, the poor were blamed fifty-fifty though in that location were approximately $700 trillion in financial derivatives. Believe it or not, but that number has since exploded to $1.two quadrillion in financial derivatives.

Rich Dad Lesson: "Why the rich pay less in taxes."

Poor people frequently go angry when they learn rich people pay less in taxes. Instead, they should focus on learning from the rich every bit they pay fewer taxes legally.

The poor and center class will ever pay more than taxes than the rich. This statement is true considering it'll e'er be the person who works for money who gets taxed the most.

When presidents promise to raise taxes on the rich, they typically mean the middle class. Not the real rich.

Introduction

Robert Kiyosaki had two fathers: a rich one and a poor one. One was highly educated with a Ph.D. and so intelligent he completed his undergraduate degree in just two years. The other father didn't even finish the eighth form. While both men worked hard, were successful, and earned a lot of coin, there was always one who struggled with money. And the other dad, well, he became one of the richest people in Hawaii.

By having ii dads, with entirely different mindsets, Kiyosaki found himself comparison the two dads a lot. It was hard to figure out which dad he should heed to. Neither had found success all the same. And both were experiencing fiscal struggles as they were still early in their careers.

Schools don't provide financial pedagogy. Thus, causing the poor and heart class to exist in debt. If millions of people demand financial or medical help, Medicare and Social Security may run out.

Transitioning from the mindset of "I tin't afford information technology" to "How can I beget it?" forces you to think instead of letting yourself off the hook.

Poor Dad: The rich should pay more in taxes

Rich Dad: Taxes reward those who produce

Poor Dad: Written report hard then you can notice a good company to piece of work for

Rich Dad: Study difficult then yous tin find a good visitor to buy

Poor Dad: I'm not rich because I have children

Rich Dad: I must become rich because I have children

Poor Dad: Don't talk about coin over dinner

Rich Dad: Talk virtually money and business over dinner

Poor Dad: "Don't take risks."

Rich Dad: "Learn to manage risk."

Poor Dad: A house is the biggest nugget you own

Rich Dad: A firm is a liability

Poor Dad: Pay your bills first

Rich Dad: Pay your bills last

Poor Dad: struggles to salve a few dollars

Rich Dad: creates investments

Poor Dad: teaches how to write a strong resume

Rich Dad: teaches how to write a strong business organisation and financial programme

Poor Dad: "I'll never be rich."

Rich Dad: "I'one thousand a rich man, and rich people don't do this."

Chapter 1: Lesson 1: The Rich Don't Piece of work For Money

"The poor and middle-class work for money. The rich take coin work for them."

Growing up, Robert Kiyosaki went to the same school as the rich kids, simply considering he lived on a different side of the street. Being poor, in a schoolhouse filled with affluent students, made him seek an answer to the question, "how do I make money?"

His best friend Mike was too poor, and and so a friendship was struck between the two. The two spent an entire morning one Saturday brainstorming all the ways they could brand money. Their first project wasn't a success, nor was it legal. They decided to bandage nickels out of pb to make money– literally. With a quick caption of the laws of counterfeiting from Robert Kiyosaki'southward poor dad, the pair went back to the cartoon board.

Robert Kiyosaki's poor dad suggested that the two learn how to brand money from Mike's dad (Robert Kiyosaki's rich dad). Poor dad had heard from his banker how good the rich dad is at making money. Mike arranged a meeting fourth dimension, and the two began their lessons.

Robert Kiyosaki arrived at 8 o'clock abrupt for his meeting with Mike's dad. When the meeting began, the rich dad told the ii that he'd exist happy to teach them but won't be doing it in a classroom style. He proposed that the two boys work for him and then that he can teach them faster. The ii weren't allowed to ask questions about the deal. And so the start lesson was learned: opportunities are fleeting, so yous need to jump on them when they arrive. He offered to pay Robert and Mike 10 cents an hour, for three hours, every Saturday.

Afterwards a couple of weeks doing excruciatingly boring work, Robert told Mike that he wanted to quit. This response is what Mike'south dad was hoping for.

Before his coming together with his rich dad, Robert Kiyosaki's poor dad told him to demand what he deserves at to the lowest degree 25 cents an hour and to quit his task immediately if he didn't get a raise. Robert went to run across with his rich dad but was forced to wait hour longer than expected, which infuriated him. Robert felt that his rich dad hadn't kept his end of the bargain of teaching him and that he was just trying to exploit him by making him work for him.

His rich dad noticed that Robert had sounded similar his employees subsequently merely one month. Rich dad insisted that he was instruction Robert, merely in a way that life teaches, not in the manner that school does. The well-nigh effective manner to acquire is by doing, though well-nigh people consume education from books, which is the to the lowest degree effective way.

The chief lesson he taught in the office that mean solar day was that Robert could either finish up similar his employees who blame others for his problems, or he could accept another path and go a wealthy homo.

Rich dad had suggested that the ii boys find a new way to make money outside of working for someone else.

Lesson 1: "The poor and middle-class work for money. The rich have coin work for them."

Rich dad also shared how happy he was that Robert Kiyosaki got angry. He said, "acrimony is a big part of the formula, for passion is acrimony and love combined." Fright is what controls employees that causes them to exploit themselves.

Rich dad continued, "…it'due south fear that keeps most people working at a job: the fear of not paying their bills, the fear of being fired, the fright of not having enough money, and the fright of starting over."

Employees frequently feel disappointed looking at their paychecks– especially after tax and deductions. This was nine-yr-old Robert'southward first introduction to taxes. It's also how he learned that the rich don't let the authorities do that to them, even though they earn more than.

In a new deal, rich dad negotiated that Robert continues working for him, merely for free. For the side by side iii weeks, Robert and Mike worked for their rich dad for complimentary. So, on the third Saturday, he took them out to a park for some water ice cream. He decided to introduce him to the trap of the rat race. He did this by offer to pay them xx-five cents an hour. They said no. Rich dad then offered a dollar an hour. They said no. Then, two dollars an hr. They said no. Then, v dollars an hour. And they over again said no. The boys knew that they couldn't be bought. They were committed to becoming wealthy.

Rich dad afterward pointed out that poor people ofttimes say they're not interested in money. Robert Kiyosaki thought dorsum to the times his dad would say, "I'm not interested in money. I work because I dear my task." This is how poor people ofttimes cover themselves up.

It'southward essential to not requite in to your emotions, such as fright, so that you lot can foreclose whatever quick reactions and think considerately about a situation. The reality is a job is simply a short-term solution to a long-term problem. Rich dad's focus is on teaching the boys how to have a selection of thoughts instead of a knee joint-wiggle reaction to things.

1 of the most empowering lessons rich dad taught in this department of Rich Dad Poor Dad was to "keep using your brain, piece of work for gratuitous, soon your mind will testify yous ways of making money far beyond what I could ever pay yous. You will see things that other people never see. Well-nigh people never see these opportunities because they're looking for money and security, then that's all they become."

This lesson inspired the ii boys to find a new style to make coin. On ane Saturday, they noticed Mrs. Martin cutting off the embrace of the comic books and throwing them into a cardboard box. Since they weren't allowed to resell the comic books, they decided to create a library for a fee where other kids could come over to read as many comic books as they similar between 2:thirty p.m. and 4:30 p.grand. every day after schoolhouse for only 10 cents. This deal was a bargain for the other kids who might've spent x cents buying a comic volume. Each calendar week, they averaged around $nine.50, while paying Mike's sis one dollar a calendar week to manage the library. After three months, a fight bankrupt out in the library, and Mike'due south dad advised them to shut down the business. But they did manage to learn how to make money piece of work for them instead of working for money.

Chapter Two: Lesson ii: Why Teach Financial Literacy?

"It'due south not how much money you make. It's how much money y'all go on."

Robert Kiyosaki retired at the age of 47. He still works, merely for him and his married woman, Kim, working is an selection as their wealth will proceed to abound automatically.

In this section of Rich Dad, Poor Dad, Robert Kiyosaki shares a simple story. In 1923, the greatest leaders and richest businessmen joined together for a meeting in Chicago. Twenty-5 years later, nine of them had their life end in the following means:

• Four died broke
• One went insane
• Two were released from prison
• Two committed suicide

This unfortunate turn was likely due to their lives being drastically afflicted by the 1929 stock market place crash and the Great Depression.

The biggest fiscal lesson to larn is that it's all about how much coin you keep, not how much yous make. And without financial literacy, you lot'll lose your money shortly.

Growing up, poor dad recommended that Robert read books while rich dad recommended that Robert main financial literacy. Robert shares, "If you are going to build the Empire State Edifice, the first thing you demand to practise is dig a deep hole and pour a strong foundation. If you are going to build a home in the suburbs, all you need to do is pour a six-inch slab of physical. Most people, in their bulldoze to get rich, are trying to build an Empire Land Building on a half-dozen-inch slab."

It'due south vital to learn the subject of bookkeeping if your long-term goal is to exist rich – no affair how boring you lot think the topic is.

Dominion #one: You must know the divergence betwixt an asset and a liability– and buy assets.

"Rich people acquire avails. The poor and middle class learn liabilities they think are avails," rich dad says.

The biggest challenge poor people have is knowing the difference between an nugget and a liability. Knowing the difference between the two can help you go rich.

So, what's the difference?

An asset puts money into your pocket. A liability takes money out of your pocket.

Assets add to your income. Liabilities add to your expenses. And the job of a poor person pays you an income that then covers your expenses. The job of a middle-class person pays you an income so pays down liabilities and so pays expenses. All the same, for a rich person, their avails pay them an income. For example, their avails may give them rental income, dividends, interest, or royalties.

Here are a few examples of liabilities that the middle form ain:

• Mortgage
• Car loans
• Credit carte du jour debt
• School loans

Here are a few examples of assets that rich people own:

• Existent manor
• Stocks
• Bonds
• Notes
• Intellectual belongings

Many people who are poor or in the middle class often say, "I'g in debt, so I need to make more money." However, getting money isn't a problem. It's the lack of financial literacy that'due south the problem. So if they simply had more coin, the problem might become worse. That'southward why when people win the lottery or get a pay heighten, they usually end up dorsum in the same financial state of affairs as they did before. If a person spends all they have, the design will continue every fourth dimension they make money.

Professional person success isn't direct tied to bookish success anymore. Well-nigh students leave their schools with limited financial literacy. Afterwards in life, they find themselves struggling financially. What they need to know more than how to brand coin is how to manage their money. This skill is called fiscal aptitude. Nearly people learned how to work hard instead of how to make money work difficult for them.

Taxes terminate up costing the poor and middle class in the long run. People oftentimes buy bigger homes to grow a family, and property tax rises. People's salaries increment over time, so social security taxation likewise sees a rise. And before long, their liabilities column is filled up with a mortgage and credit-card debt. Thus, trapping them in the rat race.

The secret to knowing how to brand money is simply about creating assets instead of liabilities.

Gilded Rule: "He who has the gilded makes the rules."

"Nigh financial problems are acquired by trying to keep upwardly with the Joneses." You might cull to purchase a bigger house, work harder, or get a promotion or pay raise.

Every bit teenagers, Mike and Robert would piece of work with their rich dad. They studied how he held meetings with his bankers, attorneys, accountants, investors, and so forth. Even though his rich dad had left schoolhouse at xiii, he was at present directing some very educated people.

Rich dad regularly told the 2 teens, "An intelligent person hires people who are more intelligent than he is."

Equally a teenager, Robert realized he had more financial literacy than his poor dad equally he was able to keep books and spent a lot of fourth dimension listening to bankers, tax accountants, existent estate brokers, and others like them.

In this department of Rich Dad Poor Dad, Robert Kiyosaki shares that many people view their habitation every bit an asset. Yet, in many cases, the value of a domicile doesn't e'er go up. Sometimes people buy million-dollar houses that would sell for far less. Retirees such equally Kim'south parents had a strain on their budget when their belongings taxes increased to $i,000 a month.

When Robert plans on buying a bigger house, he "first buys avails that will generate the cash flow to pay for the house." He shares that as y'all keep to grow your asset column, over time, you lot'll also run across the growth of your income. And that's why the rich proceed getting richer– however, the reason why the middle-class struggles are because taxes increase every bit their salaries increment.

Employees work for three fundamental groups:

• Company: Making the owners and shareholders rich
• Government: Perchance 100% of the work you do from January until May goes towards taxes
• Banking concern: Your biggest expenses are your mortgage and credit card debt

"Wealth is a person's ability to survive so many number of days forward– or, if I stopped working today, how long could I survive?"

For example, if a person has $1,000 a calendar month in greenbacks flow from their asset column and they have monthly expenses of $2,000 a month, they will merely be wealthy in one case they have $2,000 a calendar month of cash flow to their asset column.

The boilerplate American only has less than $400 in savings, with an astounding 34% with none at all.

So to sum up:

• "The rich buy assets.
• The poor merely accept expenses.
• The center form buy liabilities they recall are avails."

Chapter Three: Lesson iii: Mind Your Own Business organization

"The rich focus on their asset columns while anybody else focuses on their income statements."

While nigh people assume that Ray Kroc, the founder of McDonald's, is in the hamburger business, Kroc once told an MBA form that he's actually in the real manor business. That'due south why he carefully chose every location for his franchises. Today, McDonald's owns more existent estate than whatever other organization in the world – even the Catholic church building.

When someone asks the boilerplate person, "What is your business organization?" they typically respond with their profession. However, they are not owners of the company they work for. They still need their own business. Otherwise, they'll spend their life working for everyone but themselves. That'due south the importance of minding your own business.

Financial hardship comes from spending your life putting coin into someone else's pocket instead of your own. But by working for others, they'll be dependent on pay raises, getting 2nd jobs, or working overtime.

Without a financial foundation, you lot'll be stuck to your job and its security for the rest of your life.

Withal, information technology'southward important to note that entrepreneurship tin can be a tricky path. In one instance, Robert Kiyosaki tried to go a loan. The loan commission saw that he endemic a lot of existent estate backdrop. However, they struggled to understand why he didn't have a salary or a 9 to v job. Even though, at the time, he did own many assets such as Armani suits, art, golf clubs, and of course, property.

It's as well good to note that as y'all sell your assets, the government taxes yous on the gains. Robert recommends to "keep your expenses low, reduce liabilities, and diligently build a base of solid assets." If y'all take children, advise them to build avails before they movement out or fall into the trap of the rat race.

Hither are a few more than assets that Robert recommends that y'all or your children acquire:

• "Businesses that practise not require my presence. I own them, only they are non managed or run past other people. If I have to work there, it's not a business. It becomes my task.
• Stocks
• Bonds
• Income-generating real estate
• Notes (IOUs)
• Royalties from intellectual belongings such as music, scripts, and patents
• Annihilation else that has value, produces income, or appreciates, and has a ready market place"

Rich dad used to say, "If you don't beloved information technology, you won't take care of it."

Y'all can continue your day job, merely you lot should also outset ownership assets similar those listed in a higher place.

Since xc% of companies neglect, Robert Kiyosaki'south goal is to sell the unabridged stock of a company within a year of going public.

To become rich, yous'll demand to buy luxuries last. People who purchase luxuries kickoff are oft in much debt. The aim is to build income-generating assets that tin can buy luxuries.

Affiliate 4: Lesson 4: The History of Taxes And The Power of Corporations

"My rich dad only played the game smart, and he did it through corporations– the biggest secret of the rich."

The poor oft say, "'Why don't the rich pay for it?' or 'The rich should pay more in taxes and give it to the poor.'" However, the real rich never pay taxes. The people who pay taxes are the educated, center class.

While poor dad knew the history of education, rich dad knew the history of taxes. Taxes originated in England and America temporarily to pay for wars. It wasn't until 1874 when England permanently added income taxes as a requirement of its citizens. Information technology started in 1913 for Americans. An interesting tidbit well-nigh taxes is that it was initially only for the rich to pay. That's what governments told the poor and middle form to help get them on board with the idea. That was how it got voted into law in the beginning place.

Poor dad: paid to spend money and rent people; authorities gains respect the bigger information technology gets

Rich dad: gains respect of investor by spending and hiring less

Poor dad: the rich are 'greedy crooks'

Rich dad: the regime are 'lazy thieves'

The rich don't get taxed every bit revenue enhancement laws help them to create jobs and provide housing. Thus, the government is dependent on the middle class for their tax revenue.

The rich put their coin into a corporation. Their nugget puts income into their corporation, and then corporate income can be used as income for their personal income statement. And the expenses from their personal income statement can get into the expenses for the corporation. Even though the masses continuously try to notice means to tax the rich, the rich consistently outsmart them.

Something to call up about the authorities is that if they don't spend their allotted funds, they'll risk losing money when the adjacent upkeep is announced. They aren't rewarded for existence efficient spenders. Yet, entrepreneurs are rewarded for financial efficiency. The mindsets betwixt the two are polar opposite.

The rich look for legal loopholes to avoid paying taxes. That's why they often hire the smartest accountants and attorneys.

In real estate, Robert Kiyosaki uses one of these legal loopholes likewise. In that location's a section chosen 1031 in the Internal Acquirement Code that allows a seller to filibuster the payment of taxes in w when they sell real manor provided that they buy a more expensive piece of real manor. Thus, past consistently trading up, he delays getting taxed until the time comes to liquidate. This strategy also allows him to continue building his asset column.

Knowing the law can aid save you coin (while also making sure you follow it).

Poor dad: climb the corporate ladder

Rich dad: ain the corporate ladder

When Robert was in his mid-twenties working for Xerox, he realized how disappointing it was to look at his paycheck. His bosses would talk to him about promotions and pay raises. However, that merely made him run across his deductions ascent besides. He could see himself becoming his poor dad. This realization is what made him realize he needed to follow his rich dad'south path. And so Robert turned to minding his business past edifice out his asset column and so he could invest in Hawaii's real estate market. This newfound motivation made him piece of work harder at selling Xerox machines at work. He knew he was building something bigger than himself.

Afterward three years of hard piece of work, his real manor business was making more than he was at Xerox. His company bought him his kickoff Porsche. His coworkers had no idea that he wasn't spending his commissions on the Porsche but avails.

Fiscal IQ is fabricated up of four cardinal areas:

• Accounting: ability to read numbers
• Investing: the concept of coin making coin
• Understanding markets: knowing supply and demand
• The constabulary: knowing the tax advantages and protections your corporation can provide
  • Tax advantages: corporations tin pay expenses before taxes, which employees tin can't do. A corporation can spend everything it tin and be taxed only on everything left over. You can expense machine payments, insurance, repairs, health society memberships, and almost eatery meals.
  • Protection from lawsuits: The rich use corporations to protect their assets from creditors, whereas the poor and heart class try to own everything themselves.

Business Owners with Corporations

1. Earn
2. Spend
3. Pay Taxes

Employees Who Work for Corporations

1. Earn
2. Pay Taxes
3. Spend

Affiliate Five: Lesson 5: The Rich Invent Money

"Often in the real world, it's not the smart who become ahead, simply the assuming."

When companies downsize, employees often arraign the owners for being unfair. In a news story he saw, Robert Kiyosaki shares, "A terminated manager of about 45 years of age had his wife and two babies at the plant and was begging the guards to let him talk to the owners to enquire if they would reconsider his termination. He had just bought a business firm and was afraid of losing information technology." Within of us is both someone brave and someone who will get on their knees and beg.

Even so, when we're so agape that we get-go doubting ourselves, we fail to push frontwards. Instead, it's the bold who get ahead.

Aim to convert your fear into power.

The result of gaining financial literacy and taking risks is "having more options."

In the future, we'll be seeing a rise in successful companies beingness created simply also a surge in companies failing– downsizing and laying off employees. It'southward amend to be making millions from the avails you build than aiming to go a heighten. This period is a great era to be edifice avails.

Wealth over the years

• 300 years ago: the person who owns state
• Later: the person who owns factories and production
• Today: the person with the about timely information

"The players who get out of the Rat Race the quickest are the people who understand numbers and have artistic financial minds."

Information technology is possible to accept the coin yet still struggle to motility ahead financially.

Some people accept a great opportunity present itself simply to fail to accept enough money to take reward of it. Others have a fantastic opportunity present itself only to lack the ability to recognize that it'south a great opportunity (and they may even accept the money to have reward).

The strategy of the average person is: "Piece of work hard, save, and borrow." Merely instead of working hard, they should aim to improve their fiscal intelligence so that they tin make more money. The people who get rich the fastest are those who realize that money isn't real.

"The single virtually powerful nugget we all take is our mind. If information technology is trained well, information technology tin can create enormous wealth."

Today, savers are considered losers. The reason for this is because involvement rates have never been lower. Plus, banks now charge you for property your coin.

During the stock market crash, Robert Kiyosaki was brusque of greenbacks every bit he had his money in the stock market and flat houses. However, he knew this was the time to buy. He and his wife had about a million dollars to invest in some amazing deals. He decided to shop for houses at the defalcation attorney'southward office. He asked a friend for a $ii,000 loan with a render of $200, then he could buy a $xx,000 domicile that was worth about $75,000. He then ran an ad promoting the business firm for $threescore,000. It sold within minutes. He asked for a $2,500 processing fee. Thus, giving his friend his coin dorsum without using any of his own money. Thus, earning him a profit of $40,000 with a promissory note. The whole process took him five hours.

At the time Rich Dad Poor Dad was published, there had been three stock marketplace crashes in 30 years.

• 1989-1990: existent manor
• 2001-2002: dot-com chimera flare-up
• 2008-2009: housing bubble burst

All of these stock marketplace crashes were investment opportunities.

Which one sounds harder?

1. "Work difficult. Pay 50% in taxes. Save what is left. Your savings earn v%, which is also taxed. OR
2. Accept the time to develop your financial intelligence. Harness the ability of your encephalon and nugget column."

Most of Robert Kiyosaki'due south financial growth comes from real estate and small-scale-cap stocks.

"The problem with 'secure' investments is that they are often sanitized, that is, made and then condom that the gains are less."

In one instance, Robert Kiyosaki paid $45,000 on the business firm worth $65,000 that the owner was struggling to sell. The first twelvemonth he rented information technology out to a local professor. And subsequently expenses, he nets $40 a month. However, a year later, when the market picked back up, he sold information technology for $95,000. Since he had used the money to purchase a bigger property, a 12-unit of measurement apartment, he was able to defer the payment of capital gains. He spent $300,000 on the apartment. And only two curt years later on sold it for $495,000 and bought a 30-unit of measurement apartment building with a cash period of $five,000 a calendar month. A few years later, he sold information technology for $ane.2 one thousand thousand.

The best deals aren't usually offered to newcomers. They're oft reserved for the rich. But the more sophisticated you become at the game, the more than opportunities you'll be presented with. Nearly of Robert Kiyosaki'southward millions started with as trivial every bit $5,000 or $10,000 investments.

In the past, Robert has bought 100,000 shares at 25 cents a share earlier a company goes public. Then, the company goes public, and whether it'south $2 each or if it flies to $20, you tin can sometimes make a million dollars in less than a year.

"Information technology's not gambling if you lot know what you're doing. Information technology'southward gambling if yous're just throwing money into a deal and praying."

Robert Kiyosaki shares, "Almost people never win considering they're more agape of losing. That is why I plant school so silly. In school, we acquire that mistakes are bad, and we are punished for making them. All the same if you await at the fashion humans are designed to learn, we acquire past making mistakes. We learn to walk by falling down. If we never fell downwardly, nosotros would never walk."

People'south fear of losing causes them to not be rich. "People who avert failure also avoid success."

Three skills of an investor:

1. Find an opportunity that everyone else missed: run across with your heed instead of your eyes
2. Raise money: know how to raise capital letter outside of a bank
3. Organize smart people: rent people more intelligent than you

Chapter Six: Lesson six: Work to Acquire – Don't Work For Money

"Chore security meant everything to my educated dad. Learning meant everything to my rich dad."

During an interview with a journalist, Robert Kiyosaki learned that the journalist strived to go a best-selling author. He realized she was a bang-up writer and that she should pursue that. She told him that she had tried, but no one was interested. He accidentally offended her when he told her to take a sales course so she could promote herself. She became defensive.

She replied, "I have a main's degree in English literature. Why would I get to school to larn to be a salesperson? I am a professional. I went to school to be trained in a profession, so I would not accept to be a salesperson. I detest salespeople. All they desire is coin." She packed her things. Robert Kiyosaki gently pointed out that he was the best-selling writer, non the best-writing author. This statement only infuriated her more, and the interview ended.

The earth has many successful and talented people: doctors, lawyers, dentists. And notwithstanding, they struggle financially. But as a wise business consultant in one case said, "They are one skill away from great wealth." If y'all took your skillset and paired it with financial intelligence, accounting, investing, marketing, or law, yous could achieve great wealth.

If that journalist had instead picked upwardly a task at an advertising agency to learn how to sell, she could go on to create slap-up wealth with her writing.

Rich dad says, "You want to know a piddling bit near a lot." In schoolhouse and at work, yous're expected to specialize. Those who earn promotions tend to be specialists. However, Robert Kiyosaki'southward rich dad e'er recommended the opposite. That's why, throughout the years, Robert would work in different areas of his rich dad's company. He was expected to attend meetings with lawyers, bankers, accountants. It was essential to the rich dad for Robert to know every attribute of creating an empire.

When Robert Kiyosaki had quit his loftier-paying job, his poor dad had a heart to middle talk with him, failing to understand his mindset for quitting.

Poor dad: values job security

Rich dad: values learning

Poor dad: assumed Robert went to school to learn how to be a send's officeholder

Rich dad: knew Robert went there to study international trade

The reason Robert had quit his job was then that he could learn how to pb people as his rich dad said, "If you're non a good leader, you'll get shot in the back, but similar they do in business."

"Job is an acronym for 'Just Over Bankrupt.'"

Robert Kiyosaki recommends taking on jobs where you tin learn new skills instead of jobs that pay the most.

The biggest fear for crumbling Americans is running out of money before they die. When y'all add together up health costs and long-term nursing home care, information technology's quite likely that the boilerplate American volition run out of coin during their retirement.

"Are workers looking into the future or just until their next paycheck, never questioning where they are headed?"

The best advice Robert Kiyosaki has for those looking to earn more money is to pick up a second job that'll teach them a second skill.

It'south normal to feel a fleck of resistance to that thought; you might not be excited to practise something you aren't passionate about. Just remember, you go to the gym non because you want to only considering you want to be good for you and live a long life.

Robert shares the story of an artist in Hawaii who inherited $35,000. He used the coin to run ads in an expensive mag that targeted the rich. Still, not a single person reached out. He lost his entire savings. The creative person is at present trying to sue the magazine for misrepresentation. However, the reality is that he didn't have any advert experience. When Robert asked this artist if he'd be interested in taking a course, he said, "I don't take the fourth dimension, and I don't want to waste product my money." Most people focus on improving their product rather than learning how to sell it.

Management Skills Needed for Success:

1. Direction of cash period
2. Management of systems
3. Direction of people

"The most important specialized skills are sales and marketing."

Robert Kiyosaki'southward friend Blair Singer shares, "Sales = Income. Your ability to sell– to communicate and position your strengths– directly impacts your success."

Most people fear rejection, which is why they're often intimidated by sales and marketing.

Law of Money: "Give, and you shall receive."

Robert shares, "In conclusion, I became both dads. One function of me is a hard-core backer who loves the game of making coin. The other part is a socially responsible instructor who is deeply concerned with this always-widening gap betwixt the haves and the have-nots. I personally hold the archaic education system primarily responsible for this growing gap."

Affiliate Seven: Overcoming Obstacles

"The principal divergence between a rich person and a poor person is how they manage fear."

There are five core reasons why even the financially literate don't become financially independent:

1. Fear
2. Cynicism
3. Laziness
4. Bad habits
5. Airs

Not even the rich, like losing money. No one does really. Rich dad says, "Some people are terrified of snakes. Some people are terrified of losing money. Both are phobias." That's why it was so crucial for Robert'south rich dad to teach his two sons how to take risks at a immature historic period. The younger y'all are, the easier it is to become rich.

Arroyo adventure like a Texan. Texans both win large and lose big. Their attitude is what'due south game-changing. They feel a sense of pride when they win, simply they still brag even if they lose. They lack a fear of loss. Their loss inspires them.

Before you win, you lose. Like all those times you fell off a bicycle before you lot learned how to ride information technology. Before people became rich, they lost money. About people are more afraid of the hurting of losing money than the happiness of becoming rich.

"Rich dad knew that failure would only make him stronger and smarter."

Losers are defeated by loss. Winners are inspired by loss. You lot can still detest losing without being afraid of it.

Nearly people invest in low-yield mutual funds because information technology's the safe thing to do. But that'south not the portfolio of a winner.

To be successful, yous'll demand to be focused, instead of counterbalanced.

FOCUS: Follow One Course Until Successful

Don't let uncertainty crusade you not to act. Avert remarks from friends and family unit, such every bit, "'What makes you retrieve you lot tin do that?' 'If information technology's such a good idea, how come someone else hasn't done information technology?' 'That volition never work. Y'all don't know what you're talking about.'"

Investors know that when it's a flow of doom and gloom, that's the best time to make money.

Robert'southward friend Richard recently asked him for advice on buying property. The two of them identified a ii-bedroom townhouse for merely $42,000. Others at the fourth dimension were selling for $65,000. He bought it. But later talking to a neighbor, he backed out, thinking he got a bad deal. A brusk few years later, the belongings was worth $95,000. And Richard's pocket-size investment of $5,000 could've helped him go out of the Rat Race. Doubt can be a deal killer.

When it comes to financial education, you need to know the difference between proficient debt and bad debt. Clarify instead of criticizing.

Nearly people say they're as well busy to focus on their wealth and health, simply really they're avoiding it.

"Rich dad believed the words 'I tin't beget information technology' close downwards your brain. 'How can I afford it?' opens up possibilities, excitement, and dreams." Instead of buying his kids everything they wanted, rich dad asked them to think about how they tin afford it. Rich dad never gave Robert or Mike anything. The boys had to pay for higher on their own.

The financial struggle often comes from bad habits. You need to pay yourself offset. Otherwise, y'all probable won't exist left with anything after paying your bills. That's because if yous pay yourself first and neglect to have enough money left over for bills, you'll need to notice new means to earn more money. It becomes a motivator – especially when debt collectors start calling.

"What I know makes me money. What I don't know loses me money."

Chapter Eight: Getting Started

A gold miner in Peru once told Robert Kiyosaki, "There is gold everywhere. About people are not trained to run across it."

Robert said this was too true for him in real estate. He said he could observe nigh four to v excellent properties a day, whereas others may look and find none.

10 Steps to Develop Your God-given Powers

1. Find a reason greater than reality: the power of spirit
   • A young woman who dreamed of going to the Olympics would swim every morning for three hours before going to school. She also spent her weekends studying to maintain high grades. When asked why, she responded, "I do it for myself and the people I beloved. It'southward love that gets me over the hurdles and sacrifices."
2. Brand daily choices: the power of choice
   • With every dollar nosotros receive, nosotros choose whether nosotros become: rich, poor, or the eye class. However, you lot need to train your children to know how to manage your assets. Otherwise, they'll exist lost in the next generation.
   •  It's important to learn how to invest before investing.
3. Choose friends advisedly: the power of association
   • You don't have to choose friends based on their fiscal statements.
   • Cull friends who talk about money and are interested in the subject field.
   • People with money often report that their friends without money never ask them how they did it. But they do ask for: a loan or a chore.
4. Master a formula and and then acquire a new one: the ability of learning quickly
   • Report what you lot want to do. For case, if you want to be a cook, study cooking.
   • If y'all want to make money, don't work for it.
   • Most people learn but neglect the most crucial step: action.
   • Information technology's not what you know merely how fast you learn.
5. Pay yourself first: the power of self-subject field
   • Without self-discipline, you wouldn't know how to manage a million dollars if you were to receive information technology.
   • You'll only get pushed effectually in life if you lot lack self-bailiwick and internal command.
   • Three most important management skills to start your ain business:
     • Cash flow
     • People
     • Personal fourth dimension
   • People who pay themselves beginning end upward using the money to larn avails that pay for their expenses, and then they're leftover is income. People who pay themselves last, lose all their money with expenses.
   • Even if your cash menstruum is far less than your bills, you lot need to pay yourself first.
   • Robert Kiyosaki has more liabilities than most of the population, but he uses tenants to pay for his debts.
   • Tips for paying yourself first:
     • "Don't become into large debt positions that you have to pay for. Keep your expenses low."
     • Don't dip into your savings when pressure builds. Utilize the force per unit area to discover new means of making more money.
     • Savings need to be used to make more than money instead of paying bills.
6. Pay your brokers well: the power of good advice
   • Pay professionals well and accept expensive attorneys, accountants, real manor brokers, and stockbrokers. Their services should exist making yous money. Those professionals who make more will too make you lot more money.
   • Poor people volition often tip restaurant servers 15-20 percent even with lousy service but go mad when they need to pay a broker three to vii pct.
   • Take a board of directors; it'southward essential to have people working for you who are smarter than yous.
7. Be an Indian giver: the power of getting something for nothing
   • "The sophisticated investor's first question is: 'How fast do I get my coin back?' They also want to know what they become for free, besides chosen a 'piece of the action.' That is why the ROI, or return on investment, is so important.'
   • When Robert Kiyosaki wanted to buy a small condominium in foreclosure, he submitted a bid $x,000 less than request. But since he presented a cashier's cheque with the full amount, the banking company knew it was a serious deal and accepted it. Later on three years of renting out the property, Robert Kiyosaki officially owns the asset, which continues to brand him money.
   • When you acquire an investment, you lot should aim to get something gratis with it– for instance, a condominium, a slice of country, stock shares, etc.
   • McDonald'south founder, Ray Kroc, wanted the land underneath every McDonald'due south location for free with every franchise he opened
8. Apply assets to buy luxuries: the ability of focus
   • A father wanted to teach his child how to make money. His son had been asking for a machine merely didn't want him spending his higher money on it. His begetter gave him $3,000 that the son could use to buy a vehicle indirectly. And so he couldn't use the cash to buy a car. His son started learning how to invest in stocks. He read every book, he read publications, and fifty-fifty though he lost $2,000 in the stock market, his interest had been piqued.
   • Don't buy luxuries with liabilities similar credit, buy them from your asset column
   • If 100 people got $x,000 at the beginning of the year, by the stop:
     • lxxx would take spent it all or gone farther in debt
     • 16 would've increased the amount past five-x percent
     • Four would have either doubled information technology or grew it to the millions
9. Cull heroes: the ability of myth
   • Robert Kiyosaki's heroes are Warren Buffett, Peter Lynch, George Soros, etc.
   • When Robert Kiyosaki analyzes a deal, he tries to look at information technology the same way Warren Buffett would. This strategy helps him tap into raw genius.
10. Teach and yous shall receive: the power of giving
    • Robert's rich dad taught him to be charitable. His poor dad taught him to requite away his time and knowledge, but not money.
    • Rich dad says, "If you want something, you first need to give."
    • If yous want coin, give money.

Chapter 9: Still Want More than? Here Are Some To Practice'south

Stop doing what you're doing.

• If it'due south not working, try something new.

Look for new ideas.

• Read how-to books with formulas on topics you want to larn more than nearly.
• Read: The 16 Pct Solution past Joel Moskowitz

Find someone who has done what you want to practise.

• Find the skilful who has done something you want to practise and pick their brain and so y'all can learn from them.

Accept classes, read, and attend seminars.

• Many classes are free or low toll, search the cyberspace for them then you can absorb more knowledge.

Make lots of offers.

• Robert submits offers on multiple real estate properties that he wants. He leaves the deal upwards to the real estate agent, who is the skillful, whereas he isn't.
• Nearly sellers ask for as well much money, and until at that place's a second offer, it's hard to know what the right cost is.
• You'd be surprised at how many people would say yes to an offer.

Jog, walk, or drive a sure area once a calendar month for 10 minutes.

• You lot'll find some of the best real estate investments by driving effectually. He might talk to postal workers, moving truck workers, retailers, and so forth to better understand a neighborhood.

Shop for bargains in all markets.

• "Profits are made in the ownership, not in the selling."

Look in the right places.

• Near people purchase with existent estate agents. Robert Kiyosaki buys at the foreclosure auction.

Look for people who desire to buy first. So look for someone who wants to sell.

• When ownership property, find a seller commencement then find a person who's looking to sell their holding and buy through them.

Remember big.

• If your business organisation is buying something in bulk, call some friends up to see if they're looking for that every bit well. Then, you can negotiate deals for having a big majority buy, and then you get the best deal on what you're ownership.

Learn from history.

• "All the large companies on the stock exchange started out as small companies."

Activeness always beats inaction.

• Act now!

Terminal Thoughts

Robert's friend was once trying to relieve upwardly for his four children's college educations. Only with merely $12,000. It was articulate it wasn't going to happen any fourth dimension soon. He advised his friend to buy a property in Phoenix since at that place was a slump in the market. Afterwards two weeks, they plant a three-bedroom, ii bathroom home in a skilful area. The homeowner was desperate to sell. They ended upwards buying the holding for $79,000, fifty-fifty though the possessor wanted $102,000.  His friend needed a down payment of $7,900. Each month later on all expenses were paid, his friend pocketed $125. He planned to keep the house for 12 years. He used his $125 to pay down the mortgage fifty-fifty faster. Three years later, someone offered him $156,000 for the house. Robert advised him to sell it using a 1031 revenue enhancement-deferred exchange. Side by side, he bought a mini-storage facility. Afterward 3 months, he was making $1,000 a calendar month that he put into the college fund. A couple of years later on, he sold that mini-warehouse for close to $330,000. His next investment made him $3,000 a month in income, going back to the college fund. The homo now feels confident in his power to pay for his children's college education. And it all started with only $vii,900.

There are 3 types of income

1. Ordinary earned
2. Portfolio
3. Passive

Poor dad: ordinary earned, get a safe and secure job

Rich dad: portfolio and passive, make money piece of work for you

"The cardinal to financial freedom and not bad wealth is a person's ability to catechumen earned income into passive and/or portfolio income."

Warren Buffett advises that "Risk comes from not knowing what you're doing."

Rich dad would frequently say, "If you lot desire to exist rich, you must know what kind of income to work hard for, how to go along information technology, and how to protect it from loss. That is the key to great wealth… If you do not understand the differences in those three incomes and practise not acquire the skills on how to larn and protect those incomes, yous volition probably spend your life earning less than you could and working harder than you should."

Your destiny relies on how you lot spend your coin and your time. Your family unit's future will be determined past your choices today.

Yous can buy Rich Dad Poor Dad by Robert Kiyosaki on Amazon .

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Source: https://www.oberlo.com/blog/rich-dad-poor-dad

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