rich dad and poor dad is written by Robert T.kiyosaki.where he discusses about what he learnt from his two fathers . first one is his biological father and another is his friends father, whom he consider his rich dad.he describe how his both fathers mentality is different. their principal,rules and thinkingness about money describe that how a poor person and a rich person would think.
Difference between rich and poor
• poor people believe in traditional working principle - like working hard ,save money, don't buy things you cannot afford,have a good job with good company while in the other hand rich people believe that if you have financial knowledge no anyone gonna break you to become rich.
•poor people think that if we have it in our luck then it comes to us while the rich think that we could change our luck,all we need to do is not procrastinate and try to catch all the opportunities we get.
•poor think that only education is a passport of success,if you have a degree then you would have everything ,but rich focus on balance sheet.they spend their time in educating themselves regarding investment, accounting,creative ideas and problem solving solutions.
•The poor think that" the love of money is the root of all evil" while the rich are different" the lack of money is the root of all evil".
1.rich dad, poor dad
rich dad hates the rat race He went to get out of that. he always says that you work hard to put money in your pocket not for others cause business runs by other people who don't have as much knowledge as yours.
our school and colleges don't teach financial knowledge they only focus on scholastic and professional skill. that's why the poor get poorer and the rich get richer.
2.rich don't work for money
The poor and middle class work for money and fear . while only rich people grab opportunity.acctully,they are financially free so they have a clarity to clarify.they always focus on wealth building which can create money for them.(wealth building= asset building).
when you build an asset money work for you ,the cash flow is generate.whether you work or not it pays you..
3.why teach financial literacy
Financial literacy is the ability to understand and effectively manage personal finance. This includes knowledge about budgeting, saving, investing, managing debt, and understanding financial Statements.
Poor remains poor because they do the opposite ,pile of liabilities and have zero assets.balnce sheet & income statement become unbalance.
[Don't be wise with your money rather than smart with your money.]
4.mind your own Business
the rich people focus on their assets while others focus on their income.
individuals need to mind their own business,find out what it takes to become your own business.
Asset building -
- stocks
- bond
- income generating real-estate
- IOUs
- royalties from intellectual property
- buisness
5.history of taxes and power of corporation
The biggest secret of the rich is the corporation, they know how to use it ,also you need to use the power of the corporation for your asset protection.
Advantages of corporation
- earn money
-spend money
-pay tax on the rest of money
•actually, after earning the rich people use depreciation and claim expenses as a result it reduces their tax. you should become a part of a corporation as shareholders.
Disadvantages of individuals
- earn money
- pay taxes
- left with no money
•individuals work from Jan- dec & pay tax to govt but the rich are hardly taxed.
we all have tremendous potential,one thing which holds us back is self doubt so you need to change your mindset.
6.rich invent money
bold and adventurous people go ahead in the real world not necessarily educated people only become successful.
poor people never get financially ahead they fail in grasping opportunities,some are waiting for opportunities and some are blaming others for their situation.
We should know that money has to be created,life gives us lifetime opportunities.
By using knowledge of intelligent people we can increase our own knowledge
Always remember -
"GREAT OPPORTUNITIES ARE NOT SEEN WITH YOUR EYES. THEY ARE SEEN WITH YOUR MIND"
7. work to learn, don't work for money
some people are the powerhouse of knowledge but fail miserably.they think that, yes now I have a degree my education is complete .if I settle in to a job then my life will be settled.this type of mentality keeps you poor in every way.every day try to learn new things which would keeps your mind active in both financial as well as personal way.
people should learn other skills also,it'll help for financial freedom.
Skills to get success -
- management of cash flow
- management of system
- mangement of people
- marketing skill
- communication skill
8.overcoming obstacles
Most people can't make assets due to these reasons-
> fear
> cynicism
> Laziness
> Bad habits
> Arrogance
look fear is normal The important thing is how you can handle it.thats why you should be mentally strong.
don't be afraid to take risks and be a failure there is no anybody who will achieve success without fail.
9.getting started
Tips to create and build personal wealth
- find a reason of your goal
- empowering you mind
- spend time with people who enjoy
Talking about money
- learn new skills
- sometimes others help you to get that power.
10.still want more
- stop doing what you are doing if it doesn't work try to find new ways of doing it.taking courses,keep learning, attending seminar could be useful for you.
- follow a mentor who has already done what you want to do.
- always curious about new ideas.
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