Rich Dad Poor Dad

--summary—
Introduction
Robert had two fathers. They had completely different views about money that lead
to two completely different financial outcomes, although they started at the same
level of financial and family problems.

The poor dad thought and did

Money is the root of all evil.

Work hard, go to school get a degree and find a good company to work for.

I have you children that’s why I am poor.

Money doesn’t matters.

Paid his bills at last moments.

Seek perks and benefits in his job.

Created liability. He thought the house as the biggest investment of his life.

Government should give us more.

The Rich Dad did and said:

Not having money is the root of all evil.

I have you children, that’s why I should be rich.

MONEY IS POWER.

Always paid his bills early.

Never seek perks and benefits in his work and completely believed on full self-
reliance. He believed in building his own competency in money making.

If your house is your biggest investment then you are in trouble.

Rich dad did Brain exercise that made his brain stronger and enabled him to build
more money. The Simple but intriguing exercise was asking questions like. How
can I afford this car? How can I Afford it? will simply do the trick.

Chapter One

Lesson One: The Rich Don’t work for money

The poor and the Middle class work for money.

The Rich have money work for them.

Robert and Mike happened to live in a neighborhood where they will go to a public school
of rich kids where they are the only two poor kids. One day their were moved by the Rich
lifestyle of their peers and decided that they will do something to improve their financial
situation. Robert and Mike made a partnership business. They collected used toothpaste
tubes from their neighborhood and melted those to get the nickel out of their neck. As they
were doing their first production Robert’s father steps in and tells them to stop their
business operations. Why? Because selling nickel was ill-legal. He didn’t treated them like a
poor dad. He encouraged them on their first step and told them to learn about money from
Mikes father. Roberts father believes that Mikes father has the financial know how to
become rich. So Robert goes to him with Mike.

Mikes father gives him a choice, an offer. Take it or Leave it. He told Robert that to learn
about money he would have to work with him for ten cents per hour on Saturday.

10cents an hour
So Robert’s job is to clean the dust off the canned foods in one of Mike’s super store. This
was a really boring job with a low pay and Robert thought that he was sacrificing more than
enough for 30 cents for three hours. He got fed up and meat Mike at school. He told Mike
to tell his father ,he is quitting because he is frustrated.

Mike replied that “my father has been waiting for you to get frustrated”.

Robert became even more frustrated. He scheduled to meet him one Saturday. Mike’s
father kept him waiting at the reception to further build his frustration. As Robert started
the conversation he blamed his employer of exploiting child labor. Not paying him enough
and most of all not telling him about money. Mike’s father told him that he is behaving like
all his other employess.

Actually he wanted to tell him that to learn about money you don’t need a lecture from me,
as they teach us in school. The crux of this money financial success is one’s response to life.
Life plays with everyone and many quit or fight back, like Robert fought back and asked for
a pay rise.

To be end up as a happy man with financial success, when life plays with you, just learn and
move on. If you quit or respond back you are playing it safe. Playing it safe will make you
weak and boring. You may be a hardworking man at work whom everyone respects but
what you are doing is getting yourself into submission.

But that is not how life teaches you, and I would say that life is the best teacher of all. Most
of the time, life does not talk to you. It just sort of pushes you around. Each push is life
saying, ‘Wake up. There’s something I want you to learn.

Rich dad (Mike’s father) continued, “Or if you’re the kind of person who has no guts, you
just give up every time life pushes you. If you’re that kind of person, you’ll live all your life
playing it safe, doing the right things, saving yourself for some event that never happens.
Then you die a boring old man. You’ll have lots of friends who really like you because you
were such a nice hardworking guy. But the truth is that you let life push you into
submission. Deep down you were terrified of taking risks. You really wanted to win, but the
fear of losing was greater than the excitement of winning. Deep inside, you and only you
will know you didn’t go for it. You chose to play it safe.”

Most people want everyone else in the world to change but themselves. It’s easier to
change yourself than to change others.

In a low pay situation like Robert’s many will quit and look for a better opportunity.
Thinking that a better pay will solve their problem. On the other some will remain and they
will wait for a pay rise or they will work another job and work harder than before. Thinking
that this will solve this problem.

Roberts unable to comprehend rich dad’s message asked what should he do them. Rich
dad’s points to his head and says this will solve your problem.

Rich dad explained this point of view over and over, which I call lesson number one:
The poor and the middle class work for money. The rich have money work for them.
Just know that it’s fear that keeps most people working at a job: the fear of not paying their
bills, the fear of being fired, the fear of not having enough money, and the fear of starting
over. That’s the price of studying to learn a profession or trade, and then working for
money. Most people become a slave to money—and then get angry at their boss.”

You’re taxed when you earn. You’re taxed when you spend. You’re taxed when you save.
You’re taxed when you die.

Avoiding Life’s one of the biggest traps

Roberts and Mike have been working for three weeks for nothing. On the third weekend
Rich dad appears in his car and takes them to the park to teach them a lesson. A lesson that
they didn’t understood at the moment but it made sense later in their life.

He understood that every person has a weak and needy part of their soul that can be
bought, and he knew that every individual also had a part of their soul that was resilient
and could never be bought. It was only a question of which one was stronger.

Sitting on park table and chair Rich dad told them that most people get into the traps of
two emotions and remain in it for the rest of their life. The two emotions are fear and
greed. Most people have a price because of the human emotions named fear and greed.
The fear of not having money, motivates people to go to college, get a degree, get a job in a
big company to secure your future. Then when they get their paycheck, desire kicks in and
motivates them to buy things that they had not been able to buy before. Then the pattern
is set. The pattern is:

“The pattern of get up, go to work, pay bills; get up, go to work, pay bills. People’s lives are
forever controlled by two emotions: fear and greed. Offer them more money and they
continue the cycle by increasing their spending. This is what I call the Rat Race.”

People react emotionally once they get money in their hands. That is why the “desire” takes
over. So the emotion controls their brian. “Instead of admitting the truth about how they
feel, they react to their feelings and fail to think. They feel the fear so they go to work,
hoping that money will soothe the fear, but it doesn’t. It continues to haunt them and they
return to work, hoping again that money will calm their fears, and again it doesn’t. Fear
keeps them in this trap of working, earning money, working, earning money, hoping the
fear will go away. But every day they get up, and that old fear wakes up with them. For
millions of people that old fear keeps them awake all night, causing a night of turmoil and
worry. So they get up and go to work, hoping that a paycheck will kill that fear gnawing at
their soul. Money is running their lives, and they refuse to tell the truth about that. Money
is in control of their emotions and their souls.”

Many Rich people also experience emotion of fear. They make a lot of money to amaas the
fear, they think that the fear will go away. It does but shifts into the fear of losing what they
have. Now Shahid Anwar and Azaz Chaiwala have said that more money is good and that is
what Robert’s rich dad also teaches. Many rich people earn more and spend more. They get
stuck in the cycle of earning more and spending more. This is what Rich Dad calls the Rat
Race.

The fears that drove them to get rich got worse. That weak and needy part of their soul is
actually screaming louder. They don’t want to lose the big houses, the cars and the high life
money has bought them. They worry about what their friends would say if they lost all their
money. Many are emotionally desperate and neurotic, although they look rich and have
more money.

“Be truthful about your emotions and use your mind and
emotions in your favor, not against yourself.”
About Poor Dad “He’s terrified that you won’t earn enough money and won’t fit into
society. Don’t get me wrong. He loves you and wants the best for you. I too believe an
education and a job are important, but it won’t handle the fear. You see, that same fear
that makes him get up in the morning to earn a few bucks is the fear that is causing him to
be so fanatical about your going to school.”

“I want to teach you to master the power of money, instead of being afraid of it. They don’t
teach that in school and, if you don’t learn it, you become a slave to money.”

“The main cause of poverty or financial struggle is fear and ignorance, not the economy or
the government or the rich. It’s self-inflicted fear and ignorance that keep people trapped.
So you boys go to school and get your college degrees, and I’ll teach you how to stay out of
the trap.”

He explained that once a person stops searching for information and self-knowledge,
ignorance sets in. That struggle is a moment-to moment decision—to learn to open or close
one’s mind.

To wake up in the middle of the night terrified about paying bills is a horrible way to live.

Prices go up because of greed and fear caused by ignorance.

“That’s what I will teach you. I’ll teach you to have a choice of thoughts rather than a knee-
jerk reaction, like gulping down your morning coffee and running out the door.

Rich dad went on to explain that the rich know that money is an illusion, truly like the carrot
for the donkey. It’s only out of fear and greed that the illusion of money is held together by
billions of people who believe that money is real. It’s not. Money is really made up. It is only
because of the illusion of confidence and the ignorance of the masses that this house of
cards stands.

He talked about the gold standard that America was on, and that each dollar bill was
actually a silver certificate. What concerned him was the rumor that we would someday go
off the gold standard and our dollars would no longer be backed by something tangible.

“If that happens, boys, all hell will break loose. The poor, the middle class, and the ignorant
will have their lives ruined simply because they will continue to believe that money is real
and that the company they work for, or the government, will look after them.”

We really did not understand what he was saying that day, but over the years, it made
more and more sense.

Seeing what others miss

As he climbed into his pickup truck outside his convenience store, rich dad said, “Keep
working boys, but the sooner you forget about needing a paycheck, the easier your adult
life will be. Keep using your brain, work for free, and soon your mind will show you ways of
making money far beyond what I could ever pay you. You will see things that other people
never see. Most people never see these opportunities because they’re looking for money
and security, so that’s all they get. The moment you see one opportunity, you’ll see them
for the rest of your life. The moment you do that, I’ll teach you something else. Learn this,
and you’ll avoid one of life’s biggest traps.

Lesson No 2

Why Financial Literacy

Lesson: Aquire assets not liabilities

Mike and Robert grew up to be financially rich because they had been financially educated.
This has lead them become wealthy and they have acquired assets that grow faster than
inflation. So they stay ahead of inflation.

People ask Roberts “how to get rich” and other similar questions, all of those resemble that
they are asking for a quick rich scheme. Roberts try’s to explain that to build a large building
you need to make a strong foundation. To get wealthy you have to financially educated
yourself. Financial education is the key and not making a lot of money. Education will not
only enable you to aquire wealth but retain it over generations.

Difference between an Asset and a Laibility:

Rich dad kept it simple. He believed in KISS ( keep it super simple ). He said that to become
successful we have to aquire assets, Simple. But Rich Dad’s definition of asset is different
from that of accountants, bankers and teachers.

An asset is something that puts money in your pocket and a liability is something that takes
money out of your pocket. To get rich in life you need to spend the money you make on
acquiring assets. If you want to be poor or middle class simply spend your life buying
liabilities. In accounting words, an asset is something that generates income and a liability is
something that generates expenses. If your pattern is to spend everything you get, most
likely an increase in cash will just result in an increase in spending.

Now a days kids know that academic success is not linked to professional and financial
success and that is why it’s so difficult to motivate them in school.

What is missing from their education is not how to make money, but how to manage
money. It’s called financial aptitude—what you do with the money once you make it, how
to keep people from taking it from you, how to keep it longer, and how to make that money
work hard for you.

How the quest of a financial dream turns into a financial

nightmare

The classic story of hardworking people has a set pattern. Recently married, the happy,
highly educated young couple moves into one of their cramped rented apartments.
Immediately, they realize that they are saving money because two can live as cheaply as
one.
The problem is the apartment is cramped. They decide to save money to buy their dream
home so they can have kids. They now have two incomes, and they begin to focus on their
careers. Their incomes begin to increase. For most people as their incomes goes up their
expenses goes up as well.

They think that they have enough income so they buy a home on mortage, thinking that it’s
their asset. When they buy a new home they also buy new furniture, clothes and car ( on
another mortage). Now their liability colum is up. Their expenses has increased with a new
tax called property tax, along with other taxes like the mortage, social security and car loan
etc. Then one day a credit card comes in the mail. They use it and max it out. Credit card
enables a person to buy things that he/she cannot afford it with their given income.

Back to the couple. They take the credit card and max it out. The card company calls them
and tells offers them a consolidation loan and tells them the intelligent thing to do is clear
off the high-interest consumer debt by paying off their credit card. And besides, interest on
their home is a tax deduction. They go for it, and pay off those high-interest credit cards.
They breathe a sigh of relief. Their credit cards are paid off. They’ve now folded their
consumer debt into their home mortgage. Their payments go down because they extend
their debt over 30 years. It is the smart thing to do.

They don’t understand that their trouble is really how they choose to spend the money
they do have. It is caused by financial illiteracy and not understanding the difference
between an asset and a liability. There is a saying a friend of mine says over and over to
people in debt: “If you find you have dug yourself into a hole... stop digging.”

The Japanese were aware of three powers: the sword, the jewel and the mirror.

Sword means power. Jewel means money and mirror means self-reflection. From all of
three the power of mirror is the most powerful. People too often think that making more
money will give them power over the money but instead money controls them. If they had
the power of mirror they would have reflected and thought “Does this makes sense?”.

Robert’s poor dad considered their house as their biggest investment. Robert represented
his conflicting ideas that lead to an unpleasant discussion. Rich dad was of the view that the
bigger and expensive your house, the more liabilities it generates and more money leaks
out of your pocket. This deprives a person of other opportunities. Like other assets that
would have appreciated more than the house. Lt also causes lack of additional capital that
could have been invested in the business. And loss of education, Too often, people count
their house and savings and retirement plans as all they have in their asset column. Because
they have no money to invest, they simply don’t invest. This costs them investment
experience. Most never become what the investment world calls “a sophisticated investor.”
And the best investments are usually first sold to sophisticated investors, who then turn
around and sell them to the people playing it safe.

Robert is not telling you to not buy a house or sell the one you own. A house should be free
of extra expenses.

Why the middle class remain poor and the rich get richer

Majority of the poor & middle class focus only on one income which has to deal with all the
expenses. Their asset coloum remains empty and the liability coloum remains high. That is
the “Rat Race”.

This pattern of treating your home as an investment, and the philosophy that a pay raise
means you can buy a larger home or spend more, is the foundation of today’s debt-ridden
society. This educated middle class subscribes to the dogma put out by mutual-fund
brokers and financial planners: “Play it safe. Avoid risk.”

As an employee who is also a homeowner, your working efforts are generally as follows:

After taxes, your next largest expense is usually your mortgage and credit-card debt.

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 directly.

So what is wealth? As defined by R. Buckminster Fuller:

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?
What wealth and net worth. A will have a million dollar net worth. It would include things
that don’t produce any cash/income. His monthly income from assets is $1000 and a
income from labour is $1000. His expenses are $2000. Until his income from assets he owns
is $2000, he is not wealthy.

A person who’s income from assets is $2000 and expenses are $2000 is wealthy because he
can live without working. The next goal he should have is to increase his income from
assets. Maybe he can do some labor and reinvest it in his assets, until his assets grow and
he can have make +$2000 from assets alone. Given his income is $2000. The surplus will be
reinvested back into the assets and they will grow making the person even richer. As this
reinvestment process continues, you are well on your way to become rich. Just remember
your simple observation.

The Rich buy assets (that puts money in your pocket)

The Poor only have expenses

The middle class buy laibiliteis they think are assets.

Chapter No 3
How to Mind your own business

“The rich focus on their asset colum while everyone else focuses on their income
statements.”

Macdonald’s owner, Ray addressed MBA students at a university. At a wine party he asks
everyone “what business am I in?. While the initial expression was laughter followed by
the answer, “selling hamburgers”. Little did they expect, amidst all the hamburger talk, Ray
brought up real estate. Selling burgers was the primary objective but the location of the
real estate was never neglected. Today Macdonald’s is owns the most number of real
estates in the world under a single legal entity.

This was because Ray minded his own business. He sold burgers but kept building his asset
coloum on the side. Similarly we should keep our day job and mind our own business by
building our asset coloum. For kids who have not left the house, parents should financially
educated them so they learn to recognize an asset. Otherwise they will spend their life
buying liabilities. Some may think that when the last kid leaves they will turn to focus on
acquiring assets. However most of the time their own parents turn ill.

For young people who have not yet left home, it is important for parents to teach them the
difference between an asset and a liability. Get them to start building a solid asset column
before they leave home, get married, buy a house, have kids, and get stuck in a risky
financial position, clinging to a job, and buying everything on credit. I see so many young
couples who get married and trap themselves into a lifestyle that will not let them get out
of debt for most of their working years.

So an asset is something that puts money in your pocket. An accountant or a banker will
allow you to add assets like cars and homes in your asset coloum but they are actually
liabilities. They are eating you out and you get to know when you are financially broke. A
car losses 25% of its value when it hits the road. Inflation is not adding value to your assets.
Moreover, we should aquire assets that we love and understand.

Assets that rich dad prefers are:

Those Businesses that other people can run for you without your presence. If it requires
your presense than it’s a job.

Stocks

Bonds

Income generating real estate

Notes (IOUs)

Royalities from digital assets

Anything else that has value, produces income or appreciates,

has a ready market.

As your cash flow grows, you can indulge in some luxuries. An important distinction is that
rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.

Buy luxuries last when your asset colum is filled and you are generating more than enough
cash flows. Buying a luxury on credit often causes a person to eventually resent that luxury
because the debt becomes a financial burden.
 Chapter 4
The History of Taxes and The Power of Corporations

“My Rich dad played the game smart and he did it with corporation—The Biggest Secret of
Rich.”

There was a time when there were no taxes in America and Britain. Kings will call out to
people and collect money for war from the rich people in society. Then years later the idea
of take from the rich and give it to the poor emerged. It meant to take form the crook rich
and give it to the poor to bridge the income gap. However it backfired to the poor
themselves. The Rich found a way to evade the taxes because they were smart. They had
financial knowledge and were aware of government policies and laws. The government
kept changing the law and the rich found more and more ways to evade taxes.

Consequently the government grew but tax revenue didn’t. Out of fear that government
will not run without money and also due to greed of money by the government employees,
they started taxing the poor. Income tax on the general population became permanent in
Britain and America in the 20th century. Tax base started spreading down to the lower
income brackets. However, the smart rich were able to evade taxes but Middle class and
poor were no , because they thought taxes are good.

Rich dad used to say that government tax collector is the biggest bully, thieves and a
burden on tax payers. The more we let them take they will without thinking. He considered
them greedy and always on the target to get money out of people. On the other hand poor
dad/educated dad viewed them as people working for a good cause. The fact is
governments has some genuine jobs and needs people to do it, but it’s interference in the
money matter has created only trouble. My poor dad never fought back. My rich dad didn’t
either. He just played the game smarter, and he did it through corporations—the biggest
secret of the rich.

So how do the rich get around and avoid paying the taxes. They use the power of
corporations. Basically, they are aware of the laws and are able to use them to their
advantage. The power of corporations is the biggest law they used to get rich. The
corporations have limited liability. So the owner losses the amount he/she invested in the
business and doesn’t losses any further. Their personal assets are protected. They put their
assets under a corporations name and pay the corporation’s expenses and their personal
expenses through that legal entity. They legal entity pays for all their expenses and all of
that is bought with pre-tax income. Corporations are taxed at a lower rate than induviduals.

This is was just one loophole, many other are also present due to the influence of
corporations in the government. The Jewels gave them the power to influence the law
makers. The laws are made to provide loopholes to the rich. Every time people try to punish
the rich, the rich don’t simply comply. They react. They have the money, power, and intent
to change things. They don’t just sit there and voluntarily pay more taxes. Instead, they
search for ways to minimize their tax burden. They hire smart attorneys and accountants,
and persuade politicians to change laws or create legal loopholes. They use their resources
to effect change.

An employee with a secure job, without financial aptitude cannot escape. Rich dad often
reminded Robert that the biggest bully was not the boss or supervisor. It is the tax man. If
you are ignorant it’s easy to be bullied. It’s always less expensive to pay the government
than to pay the accountant or attorney. He didn’t understand that, by relying solely on a
paycheck from a corporate employer, I would be a docile cow ready for milking.
When I told my rich dad of my father’s advice, he only chuckled.
“Why not own the ladder?” was all he said.

By using the lessons Robert learned from Rich dad he was able to archive financial
independence fast. Financial independence is made up from four basic knowledge
expertise.

1- Accounting
Accounting is financial literacy or the ability to read numbers. This is a vital skill if you want
to build an empire. The more money you are responsible for, the more accuracy is required,
or the house come tumbling down. This is the left-brain side, or the details. Financial
literacy is the ability to read and understand financial statements which allows you to
identify the strengths and weaknesses of any business.

2- Investing

Investing is the science of “money making money.” This involves strategies and formulas
which use the creative right-brain side.

3- Understanding Markets
Understanding markets is the science of supply and demand. You need to know the
technical aspects of the market, which are emotion-driven, in addition to the fundamental
or economic aspects of an investment. Does an investment make sense or does it not make
sense based on current market conditions?

4- The Law

A corporation wrapped around the technical skills of accounting, investing, and markets can
contribute to explosive growth. A person who understands the tax advantages and
protections provided by a corporation can get rich so much faster than someone who is an
employee or a small-business sole proprietor. It’s like the difference between someone
walking and someone flying. The difference is profound when it comes to long-term wealth.

The tax Advantage

A corporation can do many things that an employee cannot, like pay expenses before
paying taxes. That is a whole area of expertise that is very exciting. Employees earn and get
taxed, and they try to live on what is left. A corporation earns, spends everything it can, and
is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use.
They’re easy to set up and are not expensive if you own investments that are producing
good cashflow. For example, by owning your own corporation, your vacations can be board
meetings in Hawaii. Car payments, insurance, repairs, and health-club memberships are
company expenses. Most restaurant meals are partial expenses, and on and on. But it’s
done legally with pre-tax dollars.

Protection from Law suits

We live in a litigious society. Everybody wants a piece of your action. The rich hide much of
their wealth using vehicles such as corporations and trusts to protect their assets from
creditors. When someone sues a wealthy individual, they are often met with layers of legal
protection and often find that the wealthy person actually owns nothing. They control
everything, but own nothing. The poor and middle class try to own everything and lose it to
the government or to fellow citizens who like to sue the rich. They learned it from the Robin
Hood story: Take from the rich, and give it to the poor.
 Chapter 5

The Rich Invent Money

“Often in the real world it is the bold who get ahead and not the smart.”

Once we leave school, most of us know that it is not so much a matter of college degrees or
good grades that count. In the real world outside of academics, something more than just
grades is required. I have heard it called many things; guts, chutzpah, balls, audacity,
bravado, cunning, daring, tenacity, and brilliance. This factor, whatever it is labeled,
ultimately decides one’s future much more than school grades do.

If the fear is too strong, the genius is suppressed.

Robert enjoyed teaching financial literacy to people. He has tought many people in the
past. Once, one of his students brought a friend of her to the class. The friend was recently
divorced from a 20 year marriage and was out finding answers. She played the Cash-flow
game with along with her friend. She was delighted with her first card, the doodad, which
was a boat. She thought it as an asset but the later cards disappointed her. At the end she
lost with a baby and a boat. Instead of thinking how she lost, instead of understanding the
game she got frustrated and left. Her ticket was refunded after she complained.

Robert has come across many people like her. Actually they are everywhere in many
numbers. They question why they should increase their financial IQ? Is there any need?
What difference will it make? Those who work on their financial IQ will get ahead, harness
the opportunities and those who don’t learn to invent money will fall behind. Even after
that they, will blame the economy, technology and their boss. Land was wealth 300 years
ago, then those who owned factories and production plant, than those who possessd
information and after this the digital age is around the corner. Don’t cling to old idea, adapt
and change fast.

You can play cash flow on www.richdad.com

The CASHFLOW game was designed to give every player personal feedback. Its purpose is to
give you options. If you draw the boat card and it puts you into debt, the question is: “Now
what can you do?
In the cash flow game people face many different situations. Sometimes they have the
opportunity but don’t have the money. In contrast some have they money but don’t get the
opportunity. However, even with both opportunity and money they don’t have the financial
IQ and hence loss both in no time. Most of the time, you won’t have either opportunity or
money. But don’t let fear take over. If your fear takes over your genius will be suppressed.
Eventually you will fail. In these situations you need to be creative. Creative thinking takes
you out of it. Its how creative you are in solving financial problems.

Rich dad occasionally reminded Mike and Robert that money is not real. If you think money
is real you will spend all your life working for money. If you think money is not real than
money will work for you. But what exactly is money.
Money is what you agree

The single most powerful asset we all have is our mind. If it is trained well, it can create
enormous wealth seemingly instantaneously. An untrained mind can also create extreme
poverty that can crush a family for generations. In the information age money is increasing
exponentially and it’s the first age where people are working their minds only and not there
bodies. Developing your financial IQ will speed up your way to make more money. You will
be among those who will move with the bold and not those who are left behind.

Saving your money is a sound option most people subscribe to but we miss the
opportunities that the world passes us by.

Now Robert tells us how he invented money by investing in Arizona. During that time the
economy of Arizona was suffering and a guy on the news was telling the people to save
$100 a month so they will become millionare in 40 years. Either he was an idiot or he
wanted to make others idiot. As Robert was financially intelligent, he went out shopping
real estate. He took a loan of $2000 form a friend on $200 interest. He went and bought a
house from a company. Companies like investment banks and banks in general sell house at
a very low price. He bought a house worth $75000 for $20000, by paying a down payment
of $2000. He did the paper work meanwhile advertising the house for sale. When the house
was transferred under his name then people interested buyers were allowed to look at it.
He sold the same house for $60000. The house cost him $2000-which was also paid by the
buyer- and generated $40000 cash in his asset coloum.

He did transactions like this when people were holding their money to earn interest on it.
He did what other don’t. A transaction like this is better than saving a hundred dollar a
month. The money too is taxed which they save but not when its invested like Robert did.
Ask yourself what Robert he needed to do that. It required financial intelligence, common
sense and simple math. Not a 16 years professional degree. That is why when Robert hears
parents saying that “our child is getting a good education and will be successful in getting a
good job”, Robert knows that it’s not enough. Financial intelligence is important.
So again the four important pillars of financial intelligence are
 1- Accounting
Accounting is financial literacy, or the ability to read numbers. This is a vital skill if you want
to build businesses or investments.

2- Investing
Investing is the science of money making money.

3- Understanding markets
Understanding markets is the science of supply and demand Alexander Graham Bell gave
the market what it wanted. So did Bill Gates. A $75,000 house offered for $60,000 that cost
$20,000 was also the result of seizing an opportunity created by the market. Somebody was
buying, and someone was selling.

4- The Law
The law is the awareness of accounting corporate, state and federal regulations. I
recommend playing by the rules.

Robert explains his investment strategy in real estate. He started his journey from a small
house in a small town. The real estate market was depressed, people wanted to sell but
their money was stuck. Robert buys a house at very low price. He buys a house worth 50%
its worth because of the depressed real estate market, where people want to get rid of
their house but cant because people are saving and not spending. So then he rents out the
house, takes the payment from the tenant and pays his mortage. This made him a $40 cash
flow per month. Later when the market rose up he sold the same house for $95000. He
then reinvested using the same strategy and grew his portfolio larger and larger.
In Stocks he would buy the stocks of the company right before its going public. When it
goes public the stock price shoots up, they make capital gains and then move to the next
company or real estate.

Majority considers it a gambol but gambol is something that you are unsure of. In
investments you are sure that either they go up or down, it depends on market conditions.
When you take time to develop your financia; intelligence, you simply understand the
market much better than others which reduces your risk of loosing.

From book: “It is not gambling if you know what you’re doing. It is gambling if you’re just
throwing money into a deal and praying. The idea in anything is to use your technical
knowledge, wisdom, and love of the game to cut the odds down, to lower the risk. Of
course, there is always risk. It is financial intelligence that improves the odds. Thus, what is
risky for one person is less risky to someone else. That is the primary reason I constantly
encourage people to invest more in their financial education than in stocks, real estate, or
other markets. The smarter you are, the better chance you have of beating the odds.

As stated earlier, nothing I have written is a recommendation. It is only used as an example

of what is simple and possible. What I do is small potatoes in the grand scheme of things.
Yet for the average individual, a passive income of more than $100,000 a year is nice and
not hard to achieve. Depending on the market and how smart you are, it could be done in
five to 10 years. If you keep your living expenses modest, $100,000 coming in as additional
income is pleasant, regardless of whether you work. You can work if you like or take time
off if you choose and use the government tax system in your favor, rather than against you.
My personal basis is real estate. I love real estate because it’s stable and slow-moving. I
keep the base solid. The cash flow is fairly steady and, if properly managed, has a good
chance of increasing in value. The beauty of a solid base of real estate is that it allows me to
take greater risks, as I do with speculative stocks.

Sometimes you win sometime you learn. School has thought you not to fail. However, as
humans we fail and learn. Those who fear failure, avoid failure and thus avoid success. I
agree that many cannot afford to fail, so before investing in stocks and bonds, first invest in
financial education.

There are two types of investors:

. The first and most common type is a person who buys a packaged investment. They call a
retail outlet, such as a real estate company, a stockbroker, or a financial planner, and they
buy something. It could be a mutual fund, a REIT, a stock or a bond. It is a clean and simple
way of investing. An analogy would be a shopper who goes to a computer store and buys a
computer right off the shelf.

. The second type is an investor who creates investments. This investor usually assembles a
deal in the same way a person who buys components builds a computer. I do not know the
first thing about putting components of a computer together, but I do know how to put
pieces of opportunities together, or know people who know how.

If you want to be the second type of investor, you need to develop

three main skills.

You need to identify opportunities that others miss:

You see with your mind what others miss with their eyes. For example, a friend bought this
rundown old house. It was spooky to look at. Everyone wondered why he bought it. What
he saw that we did not was that the house came with four extra empty lots. He discovered
that after going to the title company. After buying the house, he tore the house down and
sold the five lots to a builder for three times what he paid for the entire package. He made
$75,000 for two months of work. It’s not a lot of money, but it sure beats minimum wage.
And it’s not technically difficult.

Raise Money:
The average person only goes to the bank. This second type of investor needs to know how
to raise capital, and there are many ways that don’t require a bank. To get started, I learned
how to buy houses without a bank. It was the learned skill of raising money, more than the
houses themselves, that was priceless. All too often I hear people say, “The bank won’t lend
me money,” or “I don’t have the money to buy it.” If you want to be a type-two investor,
you need to learn how to do that which stops most people. In other words, a majority of
people let their lack of money stop them from making a deal. If you can avoid that obstacle,
you will be millions ahead of those who don’t learn those skills. There have been many
times I have bought a house, a stock, or an apartment building without a penny in the bank.
I once bought an apartment house for $1.2 million. I did what is called “tying it up,” with a
written contract between seller and buyer. I then raised the $100,000 deposit, which
bought me 90 days to raise the rest of the money. Why did I do it? Simply because I knew it
was worth $2 million. I never raised the money. Instead, the person who put up the
$100,000 gave me $50,000 for finding the deal, took over my position, and I walked away.
Total working time: three days. Again, it’s what you know more than what you buy.
Investing is not buying. It’s more a case of knowing.

Organize smart people:

Intelligent people are those who work with or hire a person who is more intelligent than
they are. When you need advice, make sure you choose your advisor wisely.

There is a lot to learn, but the rewards can be astronomical. If you do not want to learn
those skills, then being a type-one investor is highly recommended. It is what you know that
is your greatest wealth. It is what you do not know that is your greatest risk.
There is always risk, so learn to manage risk instead of avoiding it.

Chapter finished.
 Chapter SIX

Work to learn Don’t work to earn

We live in a world with a lot of talented people. We meet them everyday but they are not
as rich as they can be. This is because they have been told by the school system to
specialize in one skill. Due to this they are master of one thing but that particular skill is not
as useful to any other industry. They have not learned sales!. Sales is a very important skill,
it can earn these talented people more than they are currently. There are many sales and
marketing schools out there who work their best to eliminate the “fear of rejection and
failure” from people. That holds them back. There is no shame in working at low jobs unless
they teach you more than they pay you. So find jobs that teach you more than paying you.
Enter a job, work to learn that skill, become the top five of that skill and them move
forward to a new company to learn a new skill, repeat until you have learned about the
following skills. Culture, trade, sales, overcome fear, learn to be rejected communication,
marketing.

It took Robert a few years to learn these skills. He learned even more skills than I have
listed above and before 30 he launched his first company. As Rich DAD said “better be
broke before 30 because you have time to recover”. For the time being it will put a cut in
what we earn but later on it will bear fruits in the long-run. On the other hand those who
have specialized will become more and more vulnerable. They will specialize so much that
they won’t be able to use their skills in any other industry; they will get stuck in the rat race
deeper and deeper. They seek more protection and then form unions to protect
themselves. The HARDEST job of the Educated Dad was to be the head of the teacher’s
union (one the biggest unions of America) and lead it. While the HARDEST task of Rich Dad
was to prevent unionization of his companies under his empire.

When overly specialized workers realize their vulnerability, they unionize to protect
themselves. There is an old cliché that goes: “Job is an acronym for ‘Just Over Broke.’”
Unfortunately, I would say that applies to millions of people. Because school does not think
financial intelligence is an intelligence, most workers live within their means. There is
another horrible management theory that goes, “Workers work hard enough to not be
fired, and owners pay just enough so that workers won’t quit.” And if you look at the pay
scales of most companies, again I would say there is a degree of truth to that statement.
Most people want to leave but they are due for some incentive, and that is how they are
kept stuck in where they are.
Unfortunately, there is some truth to the old statement, “You can’t teach an old dog new
tricks.” Unless a person is used to changing, it’s hard to change. going. If you are unwilling
to work to learn something new and instead insist on becoming highly specialized within
your field, make sure the company you work for is unionized. Labor unions are designed to
protect specialists. My educated dad, after falling from grace with the governor, became
the head of the teachers union in Hawaii. He told me that it was the hardest job he ever
held. My rich dad, on the other hand, spent his life doing his best to keep his companies
from becoming unionized. He was successful. Although the unions came close, rich dad was
always able to fight them off.

So if you are planning to become specialize than you should unionize. Also, don’t hesitate in
investing in your financial education. This is not the waste of your money and time. Rich
dad advised that Mike and I groom ourselves. Many corporations do the same thing. They
find a young bright student just out of business school and begin grooming that person to
someday take over the company. So these bright young employees do not specialize in one
department. They are moved from department to department to learn all the aspects of
business systems. The rich often groom their children or the children of others. By doing so,
their children gain an overall knowledge of the operations of the business and how the
various departments interrelate.

The main management skills are:

Management of cash flow
Management of syestems
Management of people

The most important specialized skills are sales and marketing. The ability to sell—to
communicate to another human being, be it a customer, employee, boss, spouse, or child—
is the base skill of personal success. Communication skills such as writing, speaking, and
negotiating are crucial to a life of success. These are skills I work on constantly, attending
courses or buying educational resources to expand my knowledge. Rich dad encouraged
Mike and me to know a little about a lot. He encouraged us to work with people smarter
than we were and to bring smart people together to work as a team. Today it would be
called a synergy of professional specialities.

The better you are communicating, negotiating and handling your fear of rejection the
easier your life is. Just as Robert advised everyone.

Ending From Book:

Being technically specialized has its strengths as well as its weaknesses. I have friends who
are geniuses, but they cannot communicate effectively with other human beings and, as a
result, their earnings are pitiful. I advise them to just spend a year learning to sell. Even if
they earn nothing, their communication skills will improve. And that is priceless. In addition
to being good learners, sellers, and marketers, we need to be good teachers as well as good
students. To be truly rich, we need to be able to give as well as to receive. In cases of
financial or professional struggle, there is often a lack of giving and receiving. I know
many people who are poor because they are neither good students nor good teachers.
Both of my dads were generous men. Both made it a practice to give first. Teaching was one
of their ways of giving. The more they gave, the more they received. One glaring difference
was in the giving of money. My rich dad gave lots of money away. He gave to his church, to
charities, and to his foundation. He knew that to receive money, you had to give money.
Giving money is the secret to most great wealthy families.

That is why there are organizations like the Rockefeller Foundation and the Ford
Foundation. These are organizations designed to take their wealth and increase it, as well
as give it away in perpetuity. My educated dad always said, “When I have some extra
money, I’ll give it.” The problem was that there was never any extra. So he worked harder
to draw more money in, rather than focus on the most important law of money: “Give, and
you shall receive.” Instead, he believed in: “Receive, and then you give.” In conclusion, I
became both dads. One part of me is a hard-core capitalist who loves the game of money
making money. The other part is a socially responsible teacher who is deeply concerned
with this ever widening gap between the haves and have-nots. I personally hold the archaic
educational system primarily responsible for this growing gap.

Chapter 7

OVERCOMMING OBSTECALS
Even after getting financially literate, many people will not be able to become rich, because
of the following reasons:

1- Fear
2- Cynicism
3- Laziness
4- Bad Habits
5- Arrogance
Everyone has fear, both rich and fear. Non-living things don’t have fear. The way one reacts
to fear makes them either winner or loser. Robert has never meet any rich person who has
not lost money but he has meet many poor people who have not anything, in investing.
Everyone has the fear of loosing money. Many people play safe, they go to their
accountants and brokers and invest in some bonds and mortages. These investments are
safe and reward a person little.

Rich dad told that, just like a phobia from snakes, people have a phobia of loosing money.
The Rich don’t fear loosing money. They know that if they lose money they learn a lesson
which will help them in future. Therefore, they are willing to take risk. Rich dad would
always talk about the Texans, he would often tell Mike and Robert the story of Alamas
whenever he would come out of making a business deal with due diligence. That is because
he always believed that he can turn a financial loss into an opportunity and even if he
losses, he will learn.

He also admired the Texans attitude toward handling risk, loosing and faliure. They
considered a loss, a learning and a experience that will play an important part in their later
success. In contrast, looser- who fear loosing money- they consider loss of money “a
failure”. And so they always play safe and stay behind the rich. But probably his words that
mean the most to me today are these: “Texans don’t bury their failures. They get inspired
by them. They take their failures and turn them into rallying cries. Failure inspires Texans to
become winners. But that formula is not just the formula for Texans. It is the formula for all
winners.”

According to Robert, playing safe is not a bad idea if you start as early as possible. So keep
your day job and mind your own business, slowly you will be rich by playing it safe. For this
you have to start early, probably in your early 20s.

If you have any desire to be rich, you must focus. Do not do what poor and middle-class
people do: put their few eggs in many baskets. Put a lot of your eggs in a few baskets and
FOCUS: Follow One Course Until Successful.

If you hate losing, play it safe. If losing makes you weak, play it safe. Go with balanced
investments. If you’re over 25 years old and are terrified of taking risks, don’t change. Play
it safe, but start early. Start accumulating your nest egg early because it will take time. in
those financial instruments also, even though they may appear safe.

I say all this, mentioning Texas and Fran Tarkenton, because stacking the asset column is
easy. It’s really a low-aptitude game. It doesn’t take much education. Fifth-grade math will
do. But building your asset column is a game in which attitude plays a major role. It takes
guts, patience, and a great attitude toward failure. Losers avoid failing. And failure turns
losers into winners. Just remember the Alamo.

Cynicism is the feeling of doubt and fear overtaking your thinking. This doubt and fear is
very common in people. Robert calls this feeling, the inside “little chicken”. These little
chickens are all around us. They are activated by fear and doubt and when these feelings
remain unchecked and unresolved they overtake it. External influences also play a role in it.
When hear things like “I heard that this bad thing is going to happen” etc. We daily see this
king of fear and uncertainty in news because the little chicken is activated in people and
they react.

For example, the news about a flu wave comes to the news. People rush to the stores and
buy masks and sanitizers. Moreover, new medicine against the flu are launched and sold.
This also causes “buyer’s remorse” when a buyer turns away a deal right before the
purchase was expected. It’s because of doubt and doubt is expensive. Then it also leads to
the feeling of “I don’t want”. Mostly we don’t want to start small or don’t take risk. Both of
which are critical to success. That is the thought pattern that keeps most people poor. They
criticize instead of analyze. “I don’t wants hold the key to your success” told Rich Dad.

In the stock market, I often hear people say, “I don’t want to lose money.” Well, what
makes them think I or anyone else likes losing money? They don’t make money because
they choose to not lose money. Instead of analyzing, they close their minds to another
powerful investment vehicle, the stock market. So whenever I hear people focusing on their
I-don’t-wants, rather than what they do want, I know the noise in their head must be loud.
Chicken Little has taken over their brain and is yelling, “The sky is falling, and toilets are
breaking!” So they avoid their don’t-wants, but they pay a huge price. They may never get
what they want in life. Instead of analyzing, their inner Chicken Little closes their mind.

So whenever you are in doubt and feeling afraid, just do what the owner of KFC did with his
little chicken. He fried it.

The Financial Laziness is due to the feeling of guilt. The guilt of avoiding something we
should be doing to make our lives better. The guilt of loosing money or job keeps us behind
in life. This behavior has been tought to us by the poor in society by saying things like:
How can be you so mean?

Don’t you think about your brothers and sisters?

We can’t afford it?

Most often we cover this feeling by telling ourselves that we are working hard for our kids
and family. However it makes the things worse. One of the worst things that put the mind
into laziness is the thing we say, “I can’t afford it”. This is your lazy mind telling your spirit
lies and shutting down the thinking of your brain. A human’s spirit is always thinking good
for the human by telling us things like “go to the gym and work out” or “go start that
business”.

Rich dad hated the words “I can’t afford it”. He loved the words “How can I afford it?”
because they came from the spirit, who is fresh and active. This question forces you brain
into thinking ways of doing the thing and it comes out with creative ideas. That is how
Robert and Mike were able to pay their collage fees themselves. So, a little greed is better
than felling of guilt. How can I afford it?” opens up possibilities, excitement, and dreams. So
rich dad was not so concerned about what we wanted to buy as long as we understood that
“How can I afford it?” creates a stronger mind and a dynamic spirit.

When I decided to exit the Rat Race, it was simply a question of “How can I afford to never
work again?” And my mind began to kick out answers and solutions. The hardest part was
fighting my real parents’ dogma: “We can’t afford that”, “Stop thinking only about
yourself”. “Why don’t you think about others?” and other similar sentiments designed to
instill guilt to suppress my “greed.” Too much greed, however, as anything in excess can be,
is not good. But just remember what Michael Douglas said in the movie Wall Street: “Greed
is good.” Rich dad said it differently: “Guilt is worse than greed, for guilt robs the body of its
soul.” I think Eleanor Roosevelt said it best: “Do what you feel in your heart to be right—for
you’ll be criticized anyway. You’ll be damned if you do, and damned if you don’t.”

Here guilt means “what it can have for me”. It’s the practice to look for something that
others aren’t and that’s completely right.

Bad financial habits can lead one to be pushed around all his life by bullies. A good financial
habit is to “pay yourself first” and other creditors later. Rich dad practiced this habit
throughout his life and so other rich people. This exercise motivates the brain to seek other
opportunities to generate money, so creditors can be paid. Even if you are short on money,
pay yourself first and others later. Don’t pay your creditors first and yourself later. Not only
it will demotivate you but the bullies will play around you all your life and will disposition
you in life.

The tax collectors are the biggest bullies followed by other creditors. Exercising this habit
will make you financially, mentally and fiscally stronger, with the passage of time.

In contrast if you pay yourself last, bosses, managers, Hr, tax collectors will push around
you all your life, just because you had bad money habits.

“What I know makes me money. What I don’t know loses me money. Every time I have
been arrogant, I have lost money. Because when I’m arrogant, I truly believe that what I
don’t know is not important,” rich dad would often tell me.

I have found that many people use arrogance to try to hide their own ignorance. It often
happens when I am discussing financial statements with accountants or even other
investors.

They try to bluster their way through the discussion. It is clear to me that they don’t know
what they’re talking about. They’re not lying, but they are not telling the truth.

There are many people in the world of money, finances, and investments who have
absolutely no idea what they’re talking about. Most people in the money industry are just
spouting off sales pitches like used-car salesmen. When you know you are ignorant in a
subject, start educating yourself by finding an expert in the field or a book on the subject.

Chapter 8

Getting started

There is gold everywhere. Most people are not trained to see it.

Getting started to becoming rich requires you to equip with some important things for life.
As though earlier it involves financial intelligence and risk taking. Despite many obstacles
the path is rewarding. However many people in the west choose the other way. They work
for money because it’s easier. I offer you the following 10 steps as a process to develop
your God-given powers, powers over which only you have control.
Find a greater reason than reality: the power of spirit
You need to have a strong purpose and be attached to it emotionally. Otherwise you will
loose intrest, followed by motivation and welcomed by guilt and fear. The purpose I work
for is, I don’t want to be poor and helpless. I don’t want to be moved around by bullies. I
don’t want to be in a golden cage.

The “don’t wants” create the “want’s”.

I want to help others, I want to move with confidence. I want to be financially free, have
time and have that in my young age. You will loose many times but the strong emotions will
keep you going. It may take me more time than I plan but I will eventually succeed.

Make daily choices: the power of choices

I am sitting in my class with my other fellows. What’s going to differentiate me is my
choices. Some of us will be poor, middle-class or rich. Financially, with every dollar we get in
our hands, we hold the power to choose our future. Our spending habits reflects us who we
are. Most people choose not to be rich. They consider it too much of a hastle and then
invent statements to cover up their guilt. These statements causes the person to stop
thinking about two most important things.
One is time and the second is learning.

We can learn with less investment but still many choose to spend time and money in other
spheres and delay this part. However Robert urges to invest in education first. The most
powerful asset we can train is our mind. It can make us millions, see the gold what others
cannot and we have dominion over it. This is done by educating our selves and being open
to listening. Allah has given us two ears, two eyes and one mouth, a clear indication to
listen more and speak less. We all know that intelligent person, to whom when we present
a new idea, instead of thinking and analyzing it he starts to offend it and defend his old
ideas. This intelligence combined with arrogance leads to ignorance.

Arrogant and critical people are often those with little self-esteem and they take little to no
risks. Listening is more important than talking. Instead of arguing, ask questions.
Choose Friends Carefully: The power of association
Robert has both poor and rich friends. The distinguishing factor between the two is their
financial intelligence. He loves both of them because he learns the “do not” from poor and
“do this” from the rich, so both of them play a role in his learning. The poor are the little
chickens who don’t invest, and when they do so they only choose secure investments that
the majority is afterwards. On the other hand, the rich get into the market/investment
when it’s not famous patiently wait and leave at peak. Their profits are made when the
purchase, even before they sell.

Having Rich friends is important as its part of financial intelligence. The reason you want to
have rich friends is because that is where the money is made. It’s made on information. You
want to hear about the next boom, get in, and get out before the next bust.

Master a Formula and then learn a new one: The Art of

Learning Quickly

What we often know, soon becomes old because the world is very fast changing. In todays
world we need to learn to learn fast, as fast as possible. This will boost our success as it will
put us further ahead. Learn a formula and master it by implementing it practically. For
three years working for Xerox, Robert spent his spare time in learning the art of buying
foreclosures.

Another side note: In today’s fast-changing world, it’s not so much what you know anymore
that counts, because often what you know is old. It is how fast you learn. That skill is
priceless. It’s priceless in finding faster formulas—recipes, if you will—for making dough.

Pay yourself first: The Power of Self-discipline

Paying yourself first is a must for financial discipline. It’s a good habit of the Rich. To create
this discipline, always pay yourself first and others later. To build this, stick to the following
two habits:

Always pay yourself first. It means always first save + invest then pay your bills. Even if you
are short on money, pay yourself first. Don’t let the pressure force you to dip into savings
and investments, they are only yours, they are not for paying bills.

Let the pressure build up, it will force your mind to find new ways to invent money and pay
the lenders. Your lenders will say things like “Pay, or else”, “Just put it on your credit
charge” or the government gives you a tax deduction on your house.
Pay your Professionals Well
The poor tend to give tips to restaurants but push to cut the percentage of their brokers.
They happily give to the those who increase their expenses and try to rig those who work to
increase their asset coloum. Brokers should not be house sellers, they should be investment
sellers. The accountants and tax autorneys should mind their own businesses and if they
have the same business as yours that’s best. Hence pay the professionals well. If they make
money it means you will also make money. They will do the work while you could spend
your time on some other asset or your family. So don’t hesite to pay them well.

Be an Indian giver: The power of getting something from

nothing
When the first European settlers came to America, Indian Americans gave them blanket.
The thought it was a gift but were pissed off when they asked them to return the blankets.
So always look at the return on investment, ROI. You should get your money back and make
money over the one you invested. The real estate rent should cover your investment in less
than four years. Similarly, you should be able to sell your stocks without tension of the
market fluctuations.

Your investments should include the opportunities that others are missing, they should
contain something free with it as well.

“True, I have lost money on many occasions, but I only play with money I can afford to lose.
I would say, on an average 10 investments, I hit home runs on two or three, while five or six
do nothing, and I lose on two or three. But I limit my losses to only the money I have in at
that time.”

So, wise investors must look at more than ROI. They look at the assets they get for free
once they get their money back. That is financial intelligence.

Use assets to buy luxuries: The power of focus

A friend of Robert came to him, asking on his advice related to his son. His son wanted to
buy a car “to keep up with the jones” in his collage. After discussion with Robert he decided
to give him the money on a condition. It was decided that he won’ buy the car until he
doubles the money. Consequently, he gets more interested in the power of money than
buying a car. He lost 2/3rd but continued to invest and learn.
This is the disciple we need to learn. It’s the hard way but at the end we will have control
over money. Money will obey us and work for us. On the other hand if we take the easy
way of purchasing luxuries by spending money through our expense coloum, we will
become slave to the money. All our life we will have to work for money.

Choose Heroes: The power of myth

Having heroes is one of the most powerful way to learn. As kids when we have sports
heroes we tend to follow each and everything they do. Because we have in mind that is
they can do it then we can as well. Robert has financial heroes like Warren Buffet and
Donald Trump and others. He follows them everywhere as possible and learns from each
and every step they take. As a result financial work becomes easy for him.

Teach and you shall receive: The power of giving

Teach and you will receive. “God doesn’t need to receive, but humans need to give”. When
you are in dire need of something, go out and give what you can to others who need. Purely
with the intension of giving. You will see that god will bring you that thing back in multiples.
Give something in and it will come back in buckets. All of it goes to money, love, friendship,
contacts, smiles, sales and all others.

My rich dad would often say, “Poor people are more greedy than rich people.” He would
explain that if a person was rich, that person was providing something that other people
wanted. In my life, whenever I have felt needy or short of money or short of help, I simply
went out or found in my heart what I wanted, and decided to give it first. And when I gave,
it always came back.

Chapter 9

Still want more?

Here is a to do list

Start doing what you are doing: because it’s not working for you

Get more Ideas: this can be done by reading about topics you never heard about, books are
better than blogs as they develop the concept much deeper.

Take action on the ideas suggested in the books you read.

Find someone who has done something you want to do

Take classes, read and attend seminars.

Make a lot of offers, you never know what hits.

Always make offers with escape clauses eg “subject to”, “in case”, incorporating
contingencies in the contracts. Finding a good deal, the right business, the right people, the
right investors, or whatever is just like dating. You must go to the market and talk to a lot of
people, make a lot of offers, counteroffers, negotiate, reject, and accept. I know single
people who sit at home and wait for the phone to ring, but it’s better to go to the market,
even if it’s only the supermarket. Search, offer, reject, negotiate, and accept are all parts of
the process of almost everything in life.
Jog, walk and drive once a month for 10 minutes, where you are interested in investment

Shop for bargain in all markets

Look in the right places, because profits are made when you buy.

Look for people who want to buy first. Then look for someone who wants to sell. A friend
was looking for a certain piece of land. He had the money but did not have the time. I found
a large piece of land, larger than what my friend wanted to buy, tied it up with an option,
called my friend, and he said he wanted a piece of it. So I sold the piece to him and then
bought the land. I kept the remaining land as mine for free. Moral of the story: Buy the pie,
and cut it in pieces. Most people look for what they can afford, so they look too small. They
buy only a piece of the pie, so they end up paying more for less. Small thinkers don’t get the
big breaks. If you want to get richer, think big.

Think big: Retailers love big buyers because they love big spenders. Get along with people
who want to buy the same item. Go together, lower the per unit cost.

Learn from history

Action always beats inaction.