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The Book in Iii Sentences

1. Rich Dad Poor Dad is well-nigh Robert Kiyosaki and his two dads—his real begetter (poor dad) and the male parent of his all-time friend (rich dad)—and the ways in which both men shaped his thoughts about coin and investing.
2. You don't need to earn a high income to exist rich.
3. Rich people make coin piece of work for them.

The Five Big Ideas

1. The poor and the heart-class work for coin. The rich have money work for them.
2. It's not how much money you make that matters. It's how much money y'all continue.
3. Rich people acquire assets. The poor and middle form acquire liabilities that they think are assets.
4. Financial bent is what yous do with money once you make it, how you continue people from taking information technology from you, how to keep information technology longer, and how y'all brand money piece of work difficult for y'all.
5. The single most powerful asset we all take is our mind.

Rich Dad Poor Dad Lessons

1. Lesson 1: The Rich Don't Work for Money
2. Lesson 2: Why Teach Financial Literacy?
3. Lesson 3: Listen Your Own Business
4. Lesson iv: The History of Taxes and The Power of Corporations
5. Lesson 5: The Rich Invent Money
6. Lesson 6: Piece of work to Larn—Don't Piece of work for Coin

Rich Dad Poor Dad Summary

"There is a divergence betwixt beingness poor and beingness broke. Broke is temporary. Poor is eternal."

"Money comes and goes, but if you take the education about how money works, you gain power over it and can brainstorm edifice wealth."

"People's lives are forever controlled by two emotions: fear and greed."

"So many people say, 'Oh, I'1000 not interested in money.' Yet they'll work at a task for viii hours a day."

"Thinking that a job makes you secure is lying to yourself."

"Intelligence solves bug and produces money."

"You must know the difference between an asset and a liability, and purchase assets."

An asset puts coin in your pocket. A liability takes coin out of your pocket.

"Illiteracy, both in words and numbers, is the foundation of financial struggle."

"Money frequently makes obvious our tragic human flaws, putting a spotlight on what nosotros don't know."

"Cash flow tells the story of how a person handles coin."

"Virtually people don't sympathize why they struggle financially considering they don't understand greenbacks flow."

"The number-one expense for most people is taxes."

College incomes cause college taxes. This is known as "bracket pitter-patter."

"More money seldom solves someone'due south money problems."

"The fear of existence different prevents most people from seeking new means to solve their problems."

"A person tin be highly educated, professionally successful, and financially illiterate."

"Many financial issues are caused by trying to proceed up with the Joneses."

Once you understand the divergence between assets and liabilities, concentrate your efforts on buying income-generating avails.

"The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family straight."

"Wealth is a person's ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?"

"The rich purchase assets. The poor merely have expenses. The eye class purchase liabilities they think are assets."

"The rich focus on their nugget columns while everyone else focuses on their income statements."

"Financial struggle is oft directly the result of people working all their lives for someone else."

"The error in becoming what yous study is that also many people forget to listen their ain business. They spend their lives minding someone else'due south business and making that person rich."

"To go financially secure, a person needs to mind their own business."

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

"The chief reason the majority of the poor and middle grade are fiscally conservative—which ways, 'I can't afford to take risks'—is that they accept no financial foundation."

"One of the primary reasons net worth is not accurate is simply because, the moment you begin selling your avails, you are taxed for any gains."

"A new automobile loses well-nigh 25 percent of the price you lot pay for information technology the moment you bulldoze it off the lot."

"Keep expenses depression, reduce liabilities, and diligently build a base of solid avails."

Kiyosaki says he owns business organization that do non require his presence. "If I take to work in that location, it's not a business. Information technology becomes my job."

According to Kiyosaki, existent assets fall into the following categories:

1. Stocks
2. Bonds
3. Income-generating real estate
4. Notes (IOUs)
5. Royalties from intellectual property such as music, scripts, and patents
6. Anything else that has value, produces income or appreciates, and has a set market

"For people who hate real manor, they shouldn't purchase it."

Kiyosaki more often than not holds real estate for less than seven years.

Kickoff minding your own concern. Keep your daytime job, but start buying real avails, not liabilities.

When Kiyosaki says heed your own business organisation, he means edifice and keeping your asset column strong. Once a dollar goes into it, never let it come out.

"The best thing about coin is that it works 24 hours a day and can piece of work for generations."

"An important distinction is that rich people buy luxuries last, while the poor and heart class tend to buy luxuries outset."

"A truthful luxury is a reward for investing in and developing a existent asset."

Kiyosaki's rich dad did not run across Robin Hood as a hero. He called Robin Hood a cheat.

"If y'all work for money, yous give the power to your employer. If money works for y'all, you keep the power and control information technology."

"Each dollar in my asset column was a great employee, working hard to make more employees and buy the boss a new Porsche."

Kiyosaki reminds people that financial IQ is fabricated up of knowledge from iv wide areas of expertise:

1. Accounting
2. Investing
3. Agreement markets
4. The law

"A corporation earns, spends everything it can, and is taxed on anything that is left. Information technology's 1 of the biggest legal revenue enhancement loopholes that the rich apply."

"Garret Sutton's books on corporations provide wonderful insight into the power of personal corporations."

"Often in the existent world, information technology's not the smart who get ahead, simply the bold."

Kiyosaki sees one thing in common in all of us, himself included. We all have tremendous potential, and nosotros all are blessed with gifts. Yet the i thing that holds all of the states dorsum is some degree of self-doubt.

In Kiyosaki's personal experience, your financial genius requires both technical knowledges equally well as courage.

Kiyosaki e'er encourages adult students to wait at games as reflecting back to them what they know and what they need to learn.

"Games reflect beliefs. They are instant feedback systems."

"Financial intelligence is just having more options."

"The unmarried nigh powerful nugget we all accept is our mind. If it is trained well, it tin create enormous wealth."

"The world is always handing yous opportunities of a lifetime, every day of your life, but all as well often we fail to see them."

Richard uses two main vehicles to accomplish fiscal growth: real estate and small-cap stocks.

"Simple math and mutual sense are all yous need to do well financially."

"The trouble with 'secure' investments is that they are often sanitized, that is, made and so condom that the gains are less."

"Information technology is not gambling if y'all know what you lot're doing. It is gambling if you're just throwing money into a deal and praying."

"Near people never go wealthy but because they are not trained financially to recognize opportunities right in front of them."

"Great opportunities are not seen with your eyes. They are seen with your heed."

"You want to know a footling well-nigh a lot" was rich dad'southward proffer.

"Task is an acronym for 'Only Over Bankrupt.'"

"Expect down the road at what skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race."

"Education is more valuable than money, in the long run."

"The reason and then many talented people are poor is considering they focus on building a ameliorate hamburger and know lilliputian to nothing about business organization systems."

The master management skills needed for success are:

1. Direction of cash period
2. Direction of systems
3. Management of people

"The most of import specialized skills are sales and marketing."

"To be truly rich, we need to be able to requite as well equally to receive."

"Giving money is the secret to most corking wealthy families."

"The primary divergence betwixt a rich person and a poor person is how they manage fear."

In that location are v main reasons why financially literate people may still non develop arable asset columns that could produce a large cash flow. The five reasons are:

1. Fear
2. Cynicism
3. Laziness
4. Bad habits
5. Arrogance

"For virtually people, the reason they don't win financially is because the hurting of losing money is far greater than the joy of being rich."

"Failure inspires winners. Failure defeats losers."

"Existent estate is a powerful investment tool for anyone seeking financial independence or liberty."

"A nifty belongings manager is key to success in real manor."

The most mutual course of laziness is staying busy.

"Rich dad believed that the words 'I can't afford it' shut down your brain. 'How can I afford information technology?' opens upwards possibilities, excitement, and dreams."

"Whenever you find yourself fugitive something you know you should exist doing, then the only affair to ask yourself is, 'What's in information technology for me?' Be a little greedy. It's the best cure for laziness."

Richard has found that many people use arrogance to try to hide their ain ignorance.

"In that location is golden everywhere. Most people are non trained to see information technology."

"To find million-dollar 'deals of a lifetime' requires united states to call on our financial genius."

A reason or a purpose is a combination of 'wants' and 'don't wants.'"

"Nearly people but buy investments rather than kickoff investing in learning about investing."

Richard believes one of the hardest things about wealth-edifice is to be truthful to yourself and to be willing to not become forth with the crowd.

"The rich know that savings are only used to create more money, not to pay bills."

"The sophisticated investor'due south first question is: 'How fast do I get my money back?'"

If Richard could leave one unmarried idea with you, it is that idea. Whenever y'all experience short or in need of something, give what you want commencement and information technology will come back in buckets.

In the world of accounting, at that place are iii dissimilar types of income:

1. Ordinary earned
2. Portfolio
3. Passive

Recommended Reading

If you lot like Rich Dad Poor Dad, you may too savor the post-obit books:

• How to Win Friends & Influence People by Dale Carnegie

• Secrets of The Millionaire Heed by T. Harv Eker

• Think and Grow Rich past Napoleon Hill

Buy The Book: Rich Dad Poor Dad

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