Summary of Rich Dad, Poor Dad by Robert Kiyosaki

Only available on StudyMode
  • Download(s) : 266
  • Published : October 4, 2012
Open Document
Text Preview
Guideposts to grow wealthier no matter what happens in a world of increasing change and uncertainty:  
 
1. Rich Don’t Work For Money
 
 
Most of the college graduate students today are dreaming to be an employee-nurse, doctor, teacher, bookkeeper, accountant, etc. Only few assume to have their any kind of business. They choose to be a permanent employee than to be an employer. They study more or less than 15 years of their life to have a secure job with high paying salary and benefits on retirement. They will quit on jobs paying low cost and find for another in which higher pay don’t solve financial problems. Thus, they quit because of having fear of not paying their bills. On the other hand, fear also keeps people working at the job, the fear of being fired, the fear of not having enough money, the fear of starting over. That's the price of studying to learn a profession or trade, and then working for money so that most people become a slave to money.  

 
2. Why Teach Financial Literacy
 
 
Having a financial intelligence leads to be rich because you know how to manage your money and where will you put it first. And in contrast, thinking also leads you to be poor. Ignorance causes poverty. Like for example, many people that such money is the solution in their poverty but the real problem-solver is the mind, the intelligence, knowledge in holding money and buying assets not liabilities. Buying more assets than liabilities leads to high income because of the profit you get on your asset which also covers expenses that's why rich person's income is greater than the expense. The more money that goes into the asset column, the more the asset column grows. The more the assets grow, the more the cash flow grows. Then the person will get rich with more and more income from sources other than his physical labor. Poor people are poor not because of the amount of money they earned, but because of his thoughts and actions. It’s not how much money you make but it’s how much money you keep. What is missing from their education is not how to make money, but how to spend money-what to do after you make it. Thus, how to manage risk in terms of money is better than playing it safe.

3. Mind Your Own Business 
 
Financial struggle is often directly the result of people working all their life for someone else. Many people will have nothing at the end of their working days because they study to have professional skills that allow them to enter the workforce and work for money. But despite on their profession, they still need their own business to make money work from them and not working for money. Minding own business means to build and keep your asset column strong. Then about on their enjoyment, the income generated from the asset column bought their luxuries, not buying luxuries with their own sweat and blood because a true luxury is a reward for investing in and developing a real asset.  

 
4. The History And The Power Of The Corporation
 
 
Once the "Take from the rich" tax was passed, cash started flowing into government. Money was handed out to government workers and the rich. It went to government workers in the form of jobs and pensions. It went to the rich via their factories receiving government contracts. The government became a large pool of money but there’s no really recirculation. In other words, the government policy was to avoid having excess money because failure to spend allotted funding is a risked losing it in the next budget unlike on business people. They are rewarded for having excess money and are recognized for their efficiency. Thus, a corporation is merely a legal document that creates a legal body without a soul. The wealth of the rich was once again protected. Once again, the use of corporations became popular-once the permanent income laws were passed- because the income-tax rate of the corporation was less than the individual income-tax rates. In short, the ones who get up every day and...
tracking img