Rich Dad, Poor Dad

I will come to share some lessons I gained by reading thru this Rich Dad, Poor Dad by Robert T Kiyosaki. Yeah I know some of you may be laughing at me for having to read this book in 2012 when this book first published in 1997. I gotta say, at least I read it and about to apply it. As for me, there’s nothing too late to start obtain control of our financial future.

Moreover, I know this book could help some of you in breaking the chains of poverty hence I don’t wanna keep the knowledge myself.. Enjoy learning readers! #thejoyofsharing J

POOR DAD	RICH DAD
The love of money is the root of all evil.	The lack of money is the root of all evil.
“I can’t afford it.” (statement: sign of mental laziness)	“How can I afford it?” (question)
Study hard so you can find a good company to work for.	Study hard so you can find a good company to buy.
“The rich should pay more taxes to take care of those less fortunate”	“Taxes punish those who produce and reward those who don’t produce”
“The reason I’m not rich is because I have you kids.”	“The reason I must be rich is because I have you kids.”
Forbade the subject of money to be discussed over a meal	Encourage talking about money and business at the dinner table
“When it comes to money, play it safe. Don’t take risks”	“Learn to manage risk”
“Our home is the largest investment and our greatest asset.”	“My house is a liability, and if your house is your largest investment, you’re in trouble.”
Believed in a company or government taking care of people and their needs (pay raises, retirement plans, medical benefits, sick leave, vacation days, and other perks)	Believed in total financial self-reliance.
“I’ll never be rich” – always refer himself as poor.	“I’m a rich man, and rich people don’t do this” – always refer himself as rich even he face financial setback.
“I’m not interested in money” or “Money doesn’t matter”	“Money is power.”

Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.

Chapter 1: the rich don’t work for money

-         People’s lives are forever controlled by two emotions: fear and greed.

-         So many people say, “Oh, I’m not interested in money.” Yet they’ll work at a job for eight hours a day.

-         “We learned to make money work for us. By not getting paid for our work at the store, we were forced to use our imaginations to identify an opportunity to make money. By starting our own business, the comic-book library, we were in control of our own finances, not dependent on an employer. The best part was that our business generated money for us, even when we weren’t physically there. Our money worked for us.”

Chapter 2 : Why teach financial literacy?

-         Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.

-         Rule #1: You must know the difference between an asset and a liability, and buy assets.

-         An asset puts money in my pocket. A liability takes money out of my pocket.

-         A person can be highly educated, professionally successful, and financially illiterate.

-         “If you find you have dug yourself into a hole…stop digging.”

-         Japanese proverbs: Japanese are aware with three powers:

(1)   The power of sword: symbolizes the power of weapons

(2)  The power of jewel: symbolizes the power of money

(3)  The power of mirror: the power of self-knowledge

-         All too often, the poor and middle class allow the power of money to control them. By simply getting up and working harder, failing to ask themselves if what they do makes sense.

-         All too often, instead of trusting their inner wisdom, that genius inside, most people follow the crowd. They do things because everybody else does them. They conform, rather than question.

-         According to psychiatrists, the fear of public speaking is caused by the fear of ostracism, the fear of standing out, the fear of criticism, the fear of ridicule, and the fear of being an outcast. The fear of being different prevents most people from seeking new ways to solve their problems.

-         Fear is the main reason that people say, “Play it safe.” That goes for anything be it sports, relationships, careers, or money.

-         Schools were designed to produce good employees instead of employers.

-         The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.

Chapter 3: Mind your own business

-         The real assets fall into the following categories:

(1)   Business that do not require my presence. I own them but managed or run by other people.

(2)  Stocks

(3)  Bonds

(4)  Income-generating real estate

(5)  Notes (IOUs)

(6)  Royalties from intellectual property such as music, scripts, and patents

(7)   Anything else that has value, produces income or appreciates, and has a ready market

-         Financial struggle is often the result of people working all their lives for someone else

-         Start minding your own business. Keep your day-time job but start buying assets not liabilities.

(cont.)