While one dad used to say.The Story The book is a true story about two fathers. left his family very little. One father. The other father had only and eighth grade education but upon his death left his family a vast financial empire. ´I can·t afford itµ the other dad would instead pose the question. a college graduate and professor who spent his life working for others and upon his death. ´How can I afford it?µ .

The two boys took on Rich Dad as a mentor. Kiyosaki learned how to free himself from the rat race and make money work for him. .Rich Dad was the father of one of Robert·s childhood friends. learning from him how to use their minds and their time to create personal wealth. From Rich Dad.

Don·t Work for Money .Lessons Learned from Rich Dad Poor Dad 1) The Rich Don·t Work for Money 2) Learning Financial Literacy? 3) Mind Your Own Business 4) The History and The Power Of Corporation 5) The Rich Invent Money 6) Work to Learn.

. The desire to keep up appearances via buying expensive clothes or cars drives expenses so high that people have no choice but to stay focused on their jobs to maintain their lifestyle.Lesson One: The Rich Don·t Work for Money Fear of not being able to pay monthly expenses or fear of losing money keep many entrenched in the day-today work. preventing many from evaluating investments and other sources of income. Lesson one is all about understanding those two emotions and stopping them from hindering one·s success.

Robert Kiyosaki breaks down the basics of financial literacy in order to show the differences in cash flow for different income levels. Financial literacy is simply the study of managing one·s finances.Lesson Two: Learning Financial Literacy? Developing financial literacy is key to having any success with money. .

the rich are able to live well off of the returns from their investments such as stocks and bonds covering any expenses. intellectual property) are greater than income (from job) No Liabilities To put it simply. clothes) No Assets. rent. notes. No Liabilities Compare that situation to the wealthy : Assets (stocks. . In order to become wealthy. food. one must focus on increasing his assets (investments) rather than focusing on increasing his income (pay raises).The best way to understand the difference between the haves and have nots are through situations shown below: This is the situation for those in lower income brackets : Job (providing income) is less than expenses (taxes. While a poor person is using the majority of his wages to pay for his prospective living expenses. bonds.

Lesson Three: Mind Your Own Business .

They are able to pay taxes after they pay for expenses. it·s the opposite case where taxes are taken out of paychecks before one is able to cover expenses. . However. which is illegal. the rich are able to avoid many of the personal taxes the poor face through corporate exemption. avoidance simply means using loopholes in tax laws to your advantage where evasion is simply not paying taxes at all. For people who have jobs. the rich are able to mitigate their losses to only the amount they invested in the corporation. By creating a personal corporation. By filing as a corporation.Lesson Four: The History and The Power Of Corporation This is the power of limited liability.

In Comparison : The Rich With Corporations The People Who Work For Corporations .

if you truly want to see your investments grow exponentially you must be willing to put in the money in places that show relative risk.Lesson Five: The Rich Invent Money The idea behind this is that wealth takes a combination of financial intelligence and a little bit of guts. In order to gain wealth. there needs to be a degree of self-confidence. Kiyosaki follows the same logic. it is not worthwhile because savings rates are often below the rate of inflation. . While saving at the bank seems secure. This means investing money outside of the comfort zone.

As Kiyosaki recommends in the book. He goes even further to describe the three main management skills necessary for success : 1. the rich use jobs as learning opportunities to develop necessary skills to be successful.Lesson Six: Work to Learn.) 3. take a second job or take classes that will teach you a skill. The management of systems (basic economic theory. it·s easy to get caught up in a job as a means of security or money.Don·t Work for Money A familiar acronym for job is just over broke. The management of cash flow (assets and liabilities) 2. take a long view of life. Instead of simply working for the money and security. political landscape. However. which are important. The management of people . Oftentimes. etc.

Thank You Prepared By: Prabhjot Singh .

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