RICH DAD POOR DAD

INTRODUCTION:

The book rich dad poor dad is written by the author Robert Kiyosaki. This book is about
writers two dad, one is his blood father who is poor dad and the other is rich dad who is his
best friend father. This book revolves around how these two dads shaped his thoughts about
money and how to invest this money to make more money. The principles, ideas of their both
fathers help him to be successful. This book teaches five lessons for everyone that rich men
don’t work for money but the money that have work for them, whereas the poor people or the
middle class men work for the money so they could have a better and a luxurious life, the
only way is by acquiring good education so that they could get good jobs and secure their
future. The author poor dad had a doctorate degree and was more concerned to education than
earning more money. Poor dad all life was occupied by thinking about the job, his social
security, his sick leaves, pension, vacation, life insurance and much more. Poor dad aim was
to earn that amount of money so that he can pay the bills and have basic needs whereas the
rich dad aim was to make abundance money so that money could work for him. His approach
was totally different. The rich dad was not so much educated but had a vast experience in
investing money. Rich dad was good at his work and had a different approach. He believed in
working for himself rather than someone else. The poor dad spend time in education, he was
not good at investing but the rich dad was very professional in investing games because he
was doing it from years. The rich dad philosophy about money was 'the lack of money is the
root of all evil whereas poor dad thinking was ' the love for money is root of all evil.
Chapter One:

The book starts by saying that author was very much blessed by having two fathers. The rich
dad and poor dad. He learned from both of his fathers; the chapter one says that one father
had a more practical approach towards the money. The author and his friend were nine years
old when a scheme clicked their minds. They wanted to get rich so they start with making
nickel with illegal method. They wanted get rich because others kids do not want to play with
them. The rich dad opposed them and taught them basic financial education. The author was
impressed by rich dad because he was he first mentor on finical literacy. He taught them to
overcome fear of working for nothing . The lesson is about who to get out of a rat race. He
made a sense development in kids that it’s not ok to put bunch of money in others pocket and
few in yours by working under someone. It’s better to work for yourself and the whole bunch
of money in your pocket.

Chapter Two:

The main view of chapter two is that the rich men do not work for money, The poor and the
middle class work for money. The spent their lives in doing their jobs. They are not able to
take risk in their life they have a simple pattern and strictly follow them. They do not play
outside the court. They are fearful and in their lives they are not able to take risks they have
the opportunity to play in billions by taking a risk but they are fearful and restrict themselves
and they where they are where as rich people make decisions and a ready to take risk and
soon they are rewarded back. Poor people likely stay in their comfort zone and work for a
salaried stable job. There are times when opportunities are in front of us but we are not able
to take risk and ignore them but the rich people are fearless and ready to go with the
opportunities while the poor are busy in securing their future.
Chapter Three:

Financial literacy is the main topic discussed in this chapter. It means the study of managing
the one finance. It has two parts one is income and the other is expense. The income is the
wage or the salary a person gets when working under some and the expenses are the things
like food rent clothing’s bills etc. The other concept related to it is assets and liability. The
assets is easy words are the thinks the money ,the investment the cash in hand. The things
you own and the liabilities are your payoff like your expenses the things that are getting out
of your pocket. The rich keeps his income and use their profit to meet the expenses, whereas
a salaried person use his income i.e. his salary to meet the expenses. The poor people keep of
piling there liabilities. Another important lesson from this chapter is to understand that it is
not how much you make, but how much you can keep that truly makes you rich.

Chapter Four:

Mind your own business is the key to this chapter. When a person consider building assets,
then he will be successful and will become wealthier. An asset is something which brings in
cash flow. A wealthier person focus of building a asset rather than waiting for the pay to rise.
Keeping your liabilities or expenses low will help to build more assets. Stocks, bonds,
income-producing real estate, mutual funds, royalties, notes all are assets. In order to
become financially free than one should it in mind his own business rather than focusing on
employee business.

Chapter Five:

When a person creates his own personal corporation then he can avoid many taxes as it offer
protection and there is a corporative exemption, He or she will only be taxed what if left of
after expenses. But for the salaried person the tax is deducted on the cheque if before the
person pay his or her expenses. The author also recommends one to develop their financial IQ
by gaining knowledge about investing, accounting, law, and understanding the market.
Chapter Six:

Every person has talent but its is usually suppressed by him or her, He is fearful and not
willing to take risk or play whole heartedly, at the end he bold people wins the race they at
the right time recognizes their talent and use it at right place on right time. Self-doubt hold
many of people in becoming wealthier. Self-confidence and believing in yourself will make
you cross any hurdles. The author says that order to increase your income you should take
risk and believe yourself. It’s the only you who can help yourself.

Chapter Seven:

In order to become rich you should first need to manage your cash flow. Selling and
marketing plays a important role in becoming rich. A story of women is coded who was
offended when he was asked to pay attention on marketing and selling as she was a book
author and had a Master degree in Literature. A good communication will also help in
becoming richer when you are able to convince other and able to deliver your complete
message and the audience is able to understand your message will then you are successful in
your goal.

Chapter Eight:

Five personality traits that directly affects you, fear, cynicism, laziness, bad habits and
arrogance. If a person learns to overcome fear than he distinguished from a poor person.
These five obstacles need to be overcome to become rich. The author say for most human,
the reason they don’t win financially is because the pain of losing money is far greater than
the joy of being rich. In order to overcame laziness you must be greedy for money. And last
obstacle is being arrogant, the person who becomes arrogant always losses.
Chapter Nine:

This chapter guide us to build personal wealth. Motivation is very much needed to become
wealthy, when you are motivated than you perform well. One should feed his mind and
choose company and friends wisely. Time is money so one should spend his time in most
accurate and appropriate way. Person should be generous and should also pay himself
neglecting oneself can cause problems. “Teach and you shall receive” is another tip that the
author gives. There are powers in this world that are much smarter than we are. You can get
there on your own, but it’s easier with the help of the powers that be. All you need to be is
generous with what you have, and the powers will be generous with you.”

Chapter Ten:

Seeking advice from others and observing people and be beneficial, Gain experience from the
elders. Stop wasting time in things that are not working for you, chose another method or
way. There is always a solution to a problem, see it from a different perspective a things will
work for you. One should increase and diverse his knowledge also seek for the new ways
and ideas and pick the brains of individuals who have the experience and who have already
done what one aspires to do.
CONCLUSION:

Rich dad poor dad concludes at the ways to be wealthy man, person should work pure
heartedly and consistently. Seeing and copying the work of other results in failure. There is a
little progress and life limit when being other employee rather being employer. Working and
giving time to own work is fruitful and end results are of a wealthy person, a rich person.
Financial intelligence is a very powerful tool in investing money and conducted business.
Studying the concept of assets and liability are very helpful throughout the life. It gives the
clear picture of the earnings. Paying taxes rent all come under expenses. All these expense
are minus from the earrings of a salaried person i.e. income or wage but in case of business
man the returns the profits are used to meet these expenses and the assets remains there.