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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 DON’T WORK FOR MONEY. “ The rich have money work for them”.
Learn to manage Risk. Money. Study hard so that you can find a good company to work for Money Play it safe.Don’t play safe. .The love of Money is root of all Evil I can’t afford it. 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. Play it Smart.
medical insurance. 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. . I am not interested in Money Our home is our largest investment and our greatest asset. retirement plan etc.Depends on company/Government for pay hike.
Marriage. Overtime/Part Time Jobs. Madonna…. Vacations………… Fast Track Bill Gates. Children.House. Graduation. Cars.Promotions/Jobchange.Michale Jordon.There is a need. Good School. ) RAT RACE Study Hard.. Job. Post Graduation. .
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. .There is a need. Education is the foundation of success so are the Financial skills & Communication skills. Study Hard.
There is a need. But there are different set of rules with which Rich Plays compared to Poor & Middle class. Financial Intelligence is the Mental Process via which we solve our Financial Problems. Example : Down Sizing/ Right Sizing of The Company. .
Wealth : Persons ability to survive so many days Forward.Why Teach Financial Literacy ? Retirement : We can work or Not Work and our wealth grows automatically staying way ahead of inflation. Liability : It is something that takes Money out of a Pocket. . Assets : Puts Money in your Pocket. It is how much Money you keep. In life it is not important how much money you make.
Credit cards . Mortgage Fixed Expenses Assets Liabilities Home. Taxes. Consumer Loans.Poor /Middle Class Financial Statement Income Expenses Pay Check.
Rental Income Assets Stocks.Rich Class Financial Statement Income Dividends. Interest. Bonds.IPR Expenses Liabilities . Real Estate.
keep the expenses less than the cash Flow generated from these assets.Why Teach Financial Literacy ? 88997777 The way to get Richer is to increase the Cash Flow from the Assets. . Reinvestment process continues with more and more income from Sources other than the Physical labor.
. Owner or Share Holders of the Company Government ( Taxes ) Banks ( Repayment of Loans ) Business revolves around the Asset column.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.
It is made up of knowledge from Four Broad Areas of Expertise. 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. . Accounting : Financial Literacy is the ability to read & understand financial statements. Financial I.Q.History of Taxes & Power of Corporation Robin Hood : Collect it from Rich & Distribute it to the Poor.
Every Person is Genius . Hence we Must have more OPTIONS. Why Develop Financial I. .Q.The Rich Invent Money Example : Graham Bell . ? In today's changing world Job security CAN NOT be taken for granted. MONEY IS NOT REAL In Today's Information Age Just Ideas and agreements are exchanged to MAKE MONEY.Formation Of AT & T.but excessive Fear & Self Doubt are the greatest Destructor of Personal Genius.
what others miss to see with their Eyes. Skill to raise Money :Investing is not buying. 7) 9) .The Rich Invent Money Financial Intelligence. It is more case of knowing. To develop Financial Intelligence fallowing 3 skills needs to be Developed. Skill to choose your advisors. 5) Skill to apply your mind .
4) The management of CASH FLOW. . 7) Skill of selling & Marketing 8) Communication skill and Most importantly. To be truly Rich . we need to be able to give as well as to receive. 5) The management of Systems ( Including yourself & time with family) 6) The management of People. The main management skills needed for Success are.Work To Learn – DON’T WORK FOR MONEY Specialization narrows your options and hence your Earning Abilities. 9) We need to be a good Teacher.
Overcoming Obstacles 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 .
Winners Analyzes. A little greed to have better life. 2) Cynicism : Unchecked doubts & Fear creates a cynic. 3) Laziness .Overcoming Obstacles 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. Cynic Criticizes. . Cure for laziness is to induce a little GREED.
Overcoming Obstacles To Overcome. Paying You First Is A GOOD HABIT. 4) Bad Habits : Developing Good Money habit is very important. Example : Paying bill on the LAST DAY of due Period is A GOOD HABIT. . 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. 5) Arrogance : Arrogance is defined as an EGO + Ignorance.
3) Choose Friends Carefully. C) I want control over my Time & Life d) I want Money to work for Me. & From poor friends You can learn What not to Do.Getting Started 1) You need a reason greater than Reality. I choose to be rich & I make that choice Every Day. b) I don’t want to be Employee. Choose Rich friends & Poor Friends carefully. 2) I choose daily. . a) I don’t want to work whole of my life. Rich Friends to learn about inside trading. I choose to invest in Education & welcomes NEW Ideas.
Let pressure inspire your Financial intelligence to come up with new ways of Making Money to pay your bills. A) Don’t get into large Debt Position. . Don’t dip into your savings or investment. In changing world learning New formula Quickly is the secrete of Success. 6) Pay your brokers well : Take good care of those people who help you to make money work for you.Getting Started 4) Master a formula and then NEW ONE. 5) Pay Yourself First. B) When you come up short.
. Income buys Luxury items. Instead find heroes (Experts )who will make it look easy. what you know to others who needs it and you will receive new ideas & finer distinction. The need for Heroes : When it comes Investing . Teach and you shall receive it : Teach .Getting Started 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.too many people make it sound hard.
” – Sharon Lechter. But never learn to have money work for them.P. The result is that people learn to work for money …. “ I love my children & want to ensure they get the best education possible! Traditional schooling. The main reason people struggle financially is because they have spent years in school but learned nothing about money. a must read A Must read for Millionaires.The book that rocked THE FINANCIAL WORLD! J. we all need to understand money and how it works. . – Robert T. is no longer enough. Morgan declares “ Rich Dad Poor Dad. – THE WALL STREET JOURNAL. Kiyoaski. while very important.
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