Rich dad and poor dad
LESSON 1: THE RICH DON'T WORK FOR MONEY
The poor and the middle class work for money. The rich have money work
for them.
the fear of being without money motivates us to work hard, and then once we
get that paycheck, greed or desire starts us thinking about all the wonderful
things money can buy. The pattern is then set.”
story:when robert kawasaki was 9 years old.His friend went to picnic
without him because he was poor so he went to his father and ask how to
make money and he replied use your brain so he and his friend mike think
for several hour and after thinking they come with idea to melt toothpaste
tube and extract lead from it so they start but later they found out that it
was illegal so they become sad by seeing this robert father suggest to go
and talk with mike father because he has knowledge about money (here
robert father was poor father and mike father was rich father)so they go to
him to learn about money,rich father said that if they want to learn about
money they have to work with him and they agree after that they work in
an store to clean thing they get 30 cent in a week to do that work .After 3
week of working robert was angry because rich dad was not teaching him
any thing by seeing him angry mike told him that his father said that he will
be angry at this time .so mike told him to meet with his father robert wait
many hours to meet with rich dad when when he meet with him he was
angry and want a raise at that time mike father told him that this was his
lesson .the lesson was that The poor and the middle class work for
money. The rich have money work for them. he say that by working for him
or money he was in trap in trap of money in which they will always fear
about paying bill and loosing money so to overcome this thing we have to
learn to have money work for us.after that robert understood and agree to
work free for him ,so for next 2 week they work their and after 2 week rich
dad come to store and gave them some leason that we should not think
with our emotion we should take time and then think.And he also said that
we should learn from our life when their are some problem we should not
just start doing anything and hope it will solve problem rather we say is
this only way to solve problem and will it last for long term .eg,when a
person lost his job he immediately think to get new job but rather thing
immediatly we should ask our self and say will it solve our problem and is
there any other way to solve this.After the lesson mike and robert think for
week and come up with idea to rent comic book which they are getting
free the bussiness work very well but for some reason they have to close
it.
LESSON 2: WHY TEACH FINANCIAL LITERACY?
it’s not how much money you make. It’s how much money you keep.
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.
we should know the difference between them we should not see asset as a
word but should see it as a number.
asset is something that put money in your pocket and liabilities is somethings
that take money from you pocket.
rich people become rich by buying asset if we want to be rich we should be
financially literate .
more money will often not solve the problem. If your pattern is to spend
everything you get, most likely an increase in cash will just result in an increase
in spending .It is not important how to make money it important how to manage
money.An intelligent person hires people who are more intelligent than he is .
The asset column generates more than enough income to cover expenses, with
the balance reinvested into the asset column. The asset column continues to
grow and, therefore, the income it produces grows with it. The result is that the
rich get richer!
middle cass struggle for money because their income come from few source
and when their income increase their expense also increase they do not have
financial education and does not know the difference between asset and
libalities
LESSON 3: MIND YOUR OWN BUSINESS
The rich focus on their asset columns while everyone else focuses on their
income statements.
To become financially secure, a person needs to mind their own business. Your
business revolves around your asset column, not your income column.
LESSON 4: THE HISTORY OF TAXES AND THE POWER OF
CORPORATIONS
My rich dad just played the game smart, and he did it through
corporations— the biggest secret of the rich.
tax was first impose in war in country like america and england.The idea of tax
was to take money from rich and give it to middle class and poor. so ,many
middle class and poor voted for it but it back fire because rich always outsmart
other they find a way to minimize the tax imposed on them .
If you work for money, you give the power to you employer.
If money works for you, you keep the power and control it.
Each dollar in my asset column was a great employee, working hard to
make more employees and buy the boss a new Porsche.
read from the mark in below image.
LESSON 5: THE RICH INVENT MONEY
Often in the real world, it’s not the smart who get ahead, but the bold(the
person who is not afraid to take risk).
we have tremendous potential but the thing that hold us back is self dout.We
should learn to adepote given situation.
The single most powerful asset we all have is our mind. If it is trained well,
it can create enormous wealth.
The point I would like to make is that investments come and go. The market
goes up and comes down. Economies improve and crash. The world is always
handing you opportunities of a lifetime, every day of your life, but all too often
we fail to see them. But they are there. And the more the world changes and
the more technology changes, the more opportunities there will be to allow you
and your family to be financially secure for generations to come.
It is not gambling if you know what you’re doing. It is gambling if you’re
just throwing money into a deal and praying.
Great opportunities are not seen with your eyes. They are seen with your
mind.
LESSON 6: WORK TO LEARN— DON'T WORK FOR MONEY
Job security meant everything to my educated dad. Learning meant
everything to my rich dad.
do not do job just for money do job to get knowledge and experience when
you acquire enough knowledge and experience leave that job and do
another.
find the work what you want to learn not for cash.
many talented people is poor because they only focus to increase the
knowledge on their talent but not focus on financial knowledge.
The main management skills needed for success are:
. Management of cash flow
. Management of systems
. Management of people
LESSON 7:OVERCOMING OBSTACLES
The primary difference between a rich person and a poor person is how
they manage fear.
There are five main reasons why financially literate people may still not develop
abundant asset columns that could produce a large cash flow. The five reasons
are:
. Fear
. Cynicism
. Laziness
. Bad habits
. Arrogance
saying in Texas is, “Everyone wants to go to heaven, but no one
wants to die.”
read the book no summary about it
LESSON 8:GETTING STARTED
There is gold everywhere.
Most people are not trained to see it.
the goal which we set has to be greater than reality that is the desire to get to
should be big.
we should make the choice which benefict us.
we should make friend which we can learn from them.
After we learn something quickly start to learn another thing.
pay yourself first ,buy some assect then pay the bills we should have self
discipline to do this things.
To successfully pay yourself first, keep the following in mind:
. Don’t get into large debt positions that you have to pay for. Keep your
expenses low. Build up assets first. Then buy the big house or nice car.
Being stuck in the Rat Race is not intelligent.
. When you come up short, let the pressure build and don’t dip into your
savings or investments. Use the pressure to inspire your financial
genius to come up with new ways of making more money, and then
pay your bills. You will have increased your ability to make more money
as well as your financial intelligence.
pay the people who provide you knowledge and help save time.
we should choose our hero .
If you want something, you first need to give .
lesson9: still want more
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Profits are made in the buying, not in the selling.