RICH DAD POOR DAD

 Lesson 1: The rich don’t work for money, they have money work for them. The poor and middle-
class work for money.

 Lesson 2: Why teach financial literacy? It’s not how much money you make, it’s how much money
you keep.

 Rule #1: Know the difference between asset and liability, and buy assets.

 Lesson 3: Mind your own business. The rich focus on their asset columns, while everyone else
focuses on their income statements.

 Lesson 4: The biggest secret of the rich is the power of corporations and taxes.

 Lesson 5: The rich invent money. It’s not the smart who get ahead, but the bold.

 Be the type of investor who creates investments: assemble a deal - put pieces of opportunities
together. To become this type of investor, you need to develop three main skills:
1. Find an opportunity that everyone else missed.
2. Raise money.
3. Organize smart people.

 Lesson 6: Work to learn - don’t work for money. Learning means everything. The most specialized
skills are sales and marketing. The main management skills needed for success are:

 Management of cash flow.

 Management of systems.
 Management of people.
 Management of personal time.

 Overcoming obstacles: Learn how to manage fear and overcome cynicism, laziness, bad habits,
and arrogance.

 Failure inspires winners and defeats losers.

 Put a lot of your eggs in a few baskets and FOCUS: Follow One Curse Until Successful.
 Just remember the Alamo: people chose to fight, knowing there was no hope of success.
Failure turns losers into winners, losers avoid failing.
 Cynics criticize, and winners analyze. Cynics never win.
 Skip the "noise", don't be a Chicken Little "the sky's falling".
 Don't be too busy to avoid the important thing: caring of your wealth.
 The words "I can't afford it" shut down your brain. "How can I afford it?" opens up possibilities,
excitement and dreams.
 Pay yourself first. The pressure to pay others forces you to seek forms of income. If I pay
myself first, I get financially stronger, mentally and fiscally.
 Arrogance is ego + ignorance. What you don’t know loses you money.
 Getting started: 10 steps to awaken your financial genius:

 Find a reason greater than reality: the power of spirit. A strong reason or purpose (wants and
don’t wants).
 Make daily choices: the power of choice. Choose to be free and rich. Invest in your mind first.
 Choose friends carefully: the power of association. Have rich friends because that is where
money is made, it’s made on information.
 Master a formula and then learn another one: the power of learning quickly.
 Pay yourself first: the power of self-discipline. Allocate money to your asset column before pay
monthly expenses.
o Don’t get into large debt positions. Keep your expenses low. Build up assets first.
o 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.
o Savings are only used to create more money.
 Pay your brokers well: the power of good advice.
 Be an Indian giver: the power of getting something for nothing. Look at the assets you get for
free once you get your money back.
 Use assets to buy luxuries: the power of focus.
 Choose heroes: the power of myth. Find heroes who inspire you and make investing look easy.
 Teach and you shall receive: the power of giving.

 To do’s: how to get started:

 Stop doing what you’re doing: take a break and stop doing what is not working.
 Look for new ideas: read how-to books on formulas you know nothing about.
 Find someone who has done what you want to do: ask them for tips and tricks of trade.
 Take classes, read, and attend seminars: search for new and interesting classes.
 Make lots of offers: it is rare than a seller asks a price that is less than something is worth.
 Jog, walk, or drive a certain area once a month for 10 minutes: jog a certain neighborhood and
look for change.
 Shop for bargains in all markets: profits are made in the buying, not in the selling.
 Look in the right places.
 Look for people who what to buy first: then look for someone who wants to sell. Buy the pie,
and cut it in pieces.
 Think big: even if you’re small, you can always think big.
 Learn from history: all the big companies started out as small companies.
 Action always beats inaction: act now!