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    Rich Dad Poor Dad: by Robert T. Kiyosaki

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    akhilaggarwal2003
    Rich Dad Poor Dad contrasts the financial lessons learned from the author's biological father and his friend's wealthy father. The educated but financially struggling poor dad worked to earn a living, while the self-made rich dad acquired assets that generated income. The book outlines six key lessons for becoming financially independent through real estate investing, business ownership, and minimizing taxes rather than relying on jobs and savings. It advocates learning practical financial skills not taught in schools to help others achieve financial security.

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    Rich Dad Poor Dad: by Robert T. Kiyosaki

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    akhilaggarwal2003
    18 views12 pages
    Rich Dad Poor Dad contrasts the financial lessons learned from the author's biological father and his friend's wealthy father. The educated but financially struggling poor dad worked to earn a living, while the self-made rich dad acquired assets that generated income. The book outlines six key lessons for becoming financially independent through real estate investing, business ownership, and minimizing taxes rather than relying on jobs and savings. It advocates learning practical financial skills not taught in schools to help others achieve financial security.

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    Rich Dad Poor Dad contrasts the financial lessons learned from the author's biological father and his friend's wealthy father. The educated but financially struggling poor dad worked to earn a living, while the self-made rich dad acquired assets that generated income. The book outlines six key lessons for becoming financially independent through real estate investing, business ownership, and minimizing taxes rather than relying on jobs and savings. It advocates learning practical financial skills not taught in schools to help others achieve financial security.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    18 views12 pages

    Rich Dad Poor Dad: by Robert T. Kiyosaki

    Uploaded by

    akhilaggarwal2003
    Rich Dad Poor Dad contrasts the financial lessons learned from the author's biological father and his friend's wealthy father. The educated but financially struggling poor dad worked to earn a living, while the self-made rich dad acquired assets that generated income. The book outlines six key lessons for becoming financially independent through real estate investing, business ownership, and minimizing taxes rather than relying on jobs and savings. It advocates learning practical financial skills not taught in schools to help others achieve financial security.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    You are on page 1of 12

    Rich Dad Poor Dad

    By Robert T. Kiyosaki

    Presented by:

    Akhil Aggarwal 2K91/M/04

    Author: Robert Kiyosaki, is a multi billionaire by all standards


    The book basically is about what people must learn

    and practice in order to become financially independent. The book talks about two different points of view about attaining financial independence (Rich dad Vs. Poor dad)

    His poor dad (his biological father), was a PhD holder

    who worked for Government, but never really attained financial independence, while his rich dad (his friends father) did not graduate from high school, but later became a very rich man not necessarily lead to financial independence, because schools do not equip kids with the information needed to ensure financial independence

    Parents advice of getting good grades and jobs will

    true tale of two dads one a highly educated professor, the other, an eighth grade dropout. Educated dad(poor dad) left his family with nothing, except maybe some unpaid bills. The dropout(rich dad) later became one of Hawaiis richest men and left his son an empire. One dad would say, I cant afford it while the other, asked, How can I afford it?

    The Book Basically comprise of following 6 lessons followed by a Conclusion :


    Lesson 1 : The Rich dont work for money Lesson 2 : Master Financial Literacy Lesson 3 : Mind Your Business Lesson 4 : Learn to minimizes the Taxes you

    pay Lesson 5 : The Rich Invent Money Lesson 6 : Work to Learn, dont Work for Money

    At the age of 9 Robert and his friend Mike asked Mikes

    dad (RICH DAD) to teach them how to make money. After dusting cans for about 3 weeks in one of Rich Dads convenience stores for 10 cents a week, Robert was ready to quit. Rich Dad said some people quit a job because it doesnt pay well while others see it as an opportunity to learn something new. The first business plan was hatched. Robert and his friend opened a comic book library for school kids and soon they were earning $9.50 a week.

    The system trains people to be good employees, and not

    good employers. Financial literacy teaches that it does not matter how much money you make, but how much money you keep. Differentiate between an asset (real estate, stocks, bonds) and liability (mortgages, consumer loans). Assets generate income, while liabilities generate expenses; i.e. your GSM mobile phone could be an asset or liability depending on what it is used for. Invest in assets and keep liabilities at minimum. A house may be a liability for a poor person whereas a rich person may treat it as a real estate asset.

    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. While providing photocopiers to Xerox on commission basis Robert had purchased real estate by his earnings. He knew in order to attain successes, he needed to work harder, sell more copiers and mind his own business. In 3 years time his real estate income was far greater than his earnings at Xerox.

    Initially Income Tax was levied on citizens with a plan to tax

    only rich eventually trickled down to the middle class and the poor. The rich have a secret weapon to shelter themselves from heavy taxation the Corporation. The Golden Rule : PAY YOURSELF FIRST.
    As an individual, your income is taxed, and what you have left is

    your disposable income , i.e., Earn Pay Tax - Spend As a corporation, you first make your money, then you take out your expenses. The profit is what is taxed, hence you pay less tax ,i.e. , Earn Spend Pay Tax

    Make good use of your time and find the best deals. Identify an opportunity everyone else has missed

    and utilize it. Robert shopped at bankruptcy courts and bought the same house at only $20,000 which were earlier valued at $100,000. Then resold them for $60,000 making a cool profit of $40,000. After 6 more transactions of the same manner he made a total of $190,000 in profit within only 30hours of work time. Another example : The real business of McDonalds isnt providing hamburgers only but also its free real estate underneath each franchise, on every important intersection.

    After college graduation Robert Kiyosaki joined the Marine

    Corps. He learned to fly for the love of it. He also learned to lead troops, an important part of management training. His next move was to join Xerox where he learned to overcome his fear of rejection. The thought of knocking on doors and selling copiers terrified him. Soon he was among the top 5 salespeople at the company. For a couple of years he was No.1. Having achieved his objective overcoming his shyness and fearhe quit and began minding his own business. Learn skills like PR, marketing, and advertising. Take a second job if it means learning more.

    Rich Dad groomed Kiyosaki and Mike in the

    same manner.
    Mike would later take over Rich Dads empire,

    which included restaurants, convenience stores, and a construction company.


    Kiyosaki created his own empire with real

    estate, new materials.

    products

    and

    educational

    The author concluded by stating that parents

    should teach these lessons to their children early enough, in order to guarantee their childrens financial future. It is never too late to start building your financial empire. You could start right now, with your next pay check, or by looking around you, to see which need you can fulfill. ACTION ALWAYS BEATS INACTION. "IF YOU'RE DOING SOMETHING YOU CARE DEEPLY ABOUT AND IF YOU BELIEVE IN IT, IT'S IMPOSSIBLE TO IMAGINE NOT TRYING TO MAKE IT GREAT."

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