This action might not be possible to undo. Are you sure you want to continue?
By :Robert Kiyosaki Sharon Lecher C.P.A
Presented by: Pradeep Prabhuchanderkar EMBA05 – Roll No.16
What Rich Teach Their Kids About Money That Poor & Middle class
Do Not !
“The poor & middle class
work for money . “ The rich have money work for them”. THE RICH DON’T WORK FOR MONEY.
The love of Money is root of all Evil I can’t afford it. Study hard so that you can find a good company to work for Money Play it safe, Don’t take Risk
The lack of Money is Root of all Evil How can I afford it ? Study Hard so that you can find good company to Buy. Money- Don’t play safe, Play it Smart. Learn to manage Risk.
Depends on company/Government for pay hike, medical insurance, retirement plan etc. I am not interested in Money Our home is our largest investment and our greatest asset.
Believes in total financial self reliance.
Money is Power. My house is a liability and if your house is your largest investment you are in Trouble.
There is a need.
Study Hard, Graduation, Post Graduation, Job, Marriage, Children,Promotions/Jobchange,House, Cars, Good School, Overtime/Part Time Jobs, Vacations…………
Fast Track Bill Gates,Michale Jordon, Madonna…..
There is a need.
Study Hard, Get Good Grades and you will Find a high paying job with Great Benefits (Safe & Secure Jobs)
IS A BAD ADVICE
The world has changed & Changing very fast and current educational system has failed to cope up with the change. Education is the foundation of success so are the Financial skills & Communication skills.
There is a need.
Financial Intelligence is the Mental Process via which we solve our Financial Problems. But there are different set of rules with which Rich Plays compared to Poor & Middle class. Example : Down Sizing/ Right Sizing of The Company.
Why Teach Financial Literacy ?
Retirement : We can work or Not Work and our wealth grows automatically staying way ahead of inflation. In life it is not important how much money you make, It is how much Money you keep. Assets : Puts Money in your Pocket. Liability : It is something that takes Money out of a Pocket. Wealth : Persons ability to survive so many days Forward.
Poor /Middle Class Financial Statement
Income Expenses Pay Check. Taxes, Mortgage Fixed Expenses Assets Liabilities
Home, Consumer Loans, Credit cards
Rich Class Financial Statement
Income Dividends, Interest, Rental Income Assets
Stocks, Bonds, Real Estate,IPR
Why Teach Financial Literacy ? 88997777
The way to get Richer is to increase the Cash Flow from the Assets, keep the expenses less than the cash Flow generated from these assets. Reinvestment process continues with more and more income from Sources other than the Physical labor.
Mind your Own Business
Profession & Business : McDonald Story Financial Struggle is often directly the result of People working all their life for some one else. Owner or Share Holders of the Company Government ( Taxes ) Banks ( Repayment of Loans ) Business revolves around the Asset column.
History of Taxes & Power of Corporation
Robin Hood : Collect it from Rich & Distribute it to the Poor.
It is made up of knowledge from Four Broad Areas of Expertise. Accounting : Financial Literacy is the ability to read & understand financial statements. Investing : Science of Money MAKING Money Understanding Market : Technical aspect of science of Supply & Demand Law : To make advantages from various provisions in the law for Growth of the Organization.
The Rich Invent Money
Example : Graham Bell .Formation Of AT & T. Every Person is Genius ,but excessive Fear & Self Doubt are the greatest Destructor of Personal Genius. Why Develop Financial I.Q. ? In today's changing world Job security CAN NOT be taken for granted. Hence we Must have more OPTIONS. MONEY IS NOT REAL In Today's Information Age Just Ideas and agreements are exchanged to MAKE MONEY.
The Rich Invent Money
To develop Financial Intelligence fallowing 3 skills needs to be Developed. 5) Skill to apply your mind , what others miss to see with their Eyes. Skill to raise Money :Investing is not buying. It is more case of knowing. Skill to choose your advisors.
Work To Learn – DON’T WORK FOR MONEY
Specialization narrows your options and hence your Earning Abilities. The main management skills needed for Success are, 4) The management of CASH FLOW. 5) The management of Systems ( Including yourself & time with family) 6) The management of People. 7) Skill of selling & Marketing 8) Communication skill and Most importantly, 9) We need to be a good Teacher. To be truly Rich , we need to be able to give as well as to receive.
The five main reasons Financially literate people struggle to became Financially Independent are, 4) 6) 8) Fear of loosing Money : Cynicism Laziness
10) Bad Habits 12) Arrogance
To Overcome Fear of loosing Money : A) Start Early B) Plan Your Retirement ( Hire Financial Planner ) C) Be Focused Winning means being unafraid to loose. 2) Cynicism : Unchecked doubts & Fear creates a cynic. Cynic Criticizes, Winners Analyzes. 3) Laziness ; Cure for laziness is to induce a little GREED. A little greed to have better life.
To Overcome, 4) Bad Habits : Developing Good Money habit is very important. Example : Paying bill on the LAST DAY of due Period is A GOOD HABIT. Paying You First Is A GOOD HABIT. 5) Arrogance : Arrogance is defined as an EGO + Ignorance. Arrogance always makes you to loose Money. Start Educating yourself by finding an Expert or a book on a subject where you know you are ignorant.
1) You need a reason greater than Reality. a) I don’t want to work whole of my life. b) I don’t want to be Employee. C) I want control over my Time & Life d) I want Money to work for Me. 2) I choose daily. I choose to be rich & I make that choice Every Day. I choose to invest in Education & welcomes NEW Ideas. 3) Choose Friends Carefully. Choose Rich friends & Poor Friends carefully. Rich Friends to learn about inside trading, & From poor friends You can learn What not to Do.
4) Master a formula and then NEW ONE. In changing world learning New formula Quickly is the secrete of Success. 5) Pay Yourself First. A) Don’t get into large Debt Position. B) When you come up short, Don’t dip into your savings or investment. Let pressure inspire your Financial intelligence to come up with new ways of Making Money to pay your bills. 6) Pay your brokers well : Take good care of those people who help you to make money work for you.
7) Be An Indian Giver : How fast do I get my Money back? So in any investment recover your principle as quickly as possible 8) Assets buys luxuries: Assets generates Income, Income buys Luxury items. The need for Heroes : When it comes Investing ,too many people make it sound hard. Instead find heroes (Experts )who will make it look easy. Teach and you shall receive it : Teach , what you know to others who needs it and you will receive new ideas & finer distinction.
The book that rocked THE FINANCIAL WORLD! J.P. Morgan declares “ Rich Dad Poor Dad, a must read A Must read for Millionaires. – THE WALL STREET JOURNAL. The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money …. But never learn to have money work for them. – Robert T. Kiyoaski. “ I love my children & want to ensure they get the best education possible! Traditional schooling, while very important, is no longer enough, we all need to understand money and how it works.” – Sharon Lechter.