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  • Writer's pictureAnderson Petergeorge

Rich Dad Poor Dad – Robert Kiyosaki


Rich Dad Poor Dad advocates the importance of financial literacy (financial education), financial independence and building wealth through investing in assets, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence (financial IQ) to improve one's business and financial aptitude. Instead of thinking "I can't afford it" always ask "How can I afford it?"

Chapter 1: The Rich Don’t Work for Money

  • Instead of thinking "I can't afford it" always ask "How can I afford it?"

    • One is a statement while the other forces your brain to think on ways to make it happen, which is a better mindset

    • "There is a difference between being poor and being broke. Broke is temporary. Poor is eternal"

  • The world is moving faster and faster. Deals come and go in a matter of minutes and more and more people are competing for good deals. So the faster you can make a decision the more likely you'll be able to seize opportunities - before someone else does.

  • Based on Edgar Dale's research the best way to learn is not by reading and lectures since we only remember 10-20% of that after 2 weeks but through what we say and do which results in 90% learning retention.


“When it comes to money, most people want to play it safe and feel secure. So passion does not direct them. Fear does.” “Most people when given more money, only get into more debt” “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. Most people become a slave to money and then get angry at their boss.” “Most people do not know that it’s their emotions that are doing the thinking” “It's just like the picture of a donkey dragging a cart with its owner dangling a carrot just in front of its nose. The donkey's owner may be going where he wants to, but the donkey is chasing an illusion. Tomorrow there will only be another carrot for the donkey.” "The poor and the middle-class work for money. The rich have money work for them."

Chapter 2: Why Teach Financial Literacy

  • It’s not about how much money you make but about how much you keep.

  • Rule #1: You must know the difference between an asset and a liability and buy assets.

  • Assets put money in your pocket. If something takes money out of your pocket, it's not an asset; it’s a liability (e.g. the home you live in is a liability since it doesn’t generate income).

Chapter 3: Mind your own business

Quotes “To be financially secure, a person needs to mind their own business” “The rich focus on their asset columns while everyone else focuses on their income statements” Chapter 4: Why Teach Financial Literacy

  • Corporations became popular in the days of sailing ships

    • People created corporations as a vehicle to limit their risk to the assets of each voyage. People put their money into a corporation to finance the voyage and if the ship was lost or failed the loss would be limited only to the money invested in that particular voyage.

  • Through the power of corporations, people were able to avoid high taxes

    • Corporations receive a lower income-tax rate than individual income-tax and allows certain expenses to be paid by the corporation with pre-tax dollars.

    • 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.

  • Corporation is merely a file folder with some legal documents in it and not a big building or factory.

  • Real estate is one investment vehicle that has a great tax advantage, as long as you keep trading up in value, you will not be taxed on the gains until you liquidate.

Chapter 5: The Rich Invent Money

  • Often in the real world, it’s not the smart that get ahead but the bold.

  • Financial intelligence is simply having more options.

  • The problem with "secure" investments is that they are often sanitized, that is, made so safe that the gains are less.

  • The more sophisticated you get, the move opportunities come your way.

  • The greater your financial intelligence, the easier and quicker it is to tell whether a deal is good.

  • The more you learn the more money you will make simply because of gained experience and wisdom those that are playing it safe just working hard at their profession are failing to gain financial wisdom.

    • You'll learn more starting something out than continuing in your current job and thinking about it

  • Great opportunities are not seen with your eyes. They are seen with your mind. Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them.

  • Intelligent people are those who work with or hire a person who is more intelligent than they are.

Chapter 6: The Rich Invent Money

  • You want to know a little about a lot

  • There is great importance of choosing teachers who have actually DONE what you want to do.

  • If you are in a highly specialized field make sure there is a union to avoid being let go so easily with skills that won’t transfer easily to another industry.

  • Most people can cook a burger better than McDonalds but it’s the business systems at McDonalds that allows it to be so successful. Most people spend too much time on making a perfect product and not on the business system to execute the product.

  • Today these business systems are internet technology - businesses must know how well they are able to use all today's tools available.

    • Today many successful business owners are IT geniuses that have built teams that use technology to improve systems, processes and communications, while keeping an eye on the future for new tools that can further improve the business.

  • Focus on switching groups and different departments to be able to understand the skills needed in all those roles and to become a versatile person.

  • Main management skills needed:

    • Management of cash flow

    • Management of systems

    • Management of people

  • The most important specialized skills are sales and marketing. The ability to sell is the ability communicate well to another human being.

  • Your ability to sell - to communicate and position your strengths - directly impacts your success.

  • The more specialized you become, the more you are trapped and dependent on that specialty.

  • We all must learn to be good teachers as well as good students to be truly rich.

  • It may not make immediate mathematical sense to leave a promising job for another, but the skills you will gain will lead to greater numbers in the long run.

  • Earning skills outside what you think of as your profession will benefit you.

  • The situation you fear most is the skill that you need to learn and conquer (e.g. door to door sales).

  • "Job security meant everything to my educated dad. Learning meant everything to my rich dad".

Chapter 7: Overcoming Obstacles

  • The primary difference between a rich person and a poor person is how they manage fear.

  • People are so afraid of losing that they lose.

  • If you ask a rich person if they ever lost money investing they will always say yes but if you ask a poor person, many will tell you they have not lost money investing.

  • For most people, the reason they don't win financially is because the pain of losing money is far greater than the joy of being rich.

  • Failure inspires winners, failure defeats losers.

  • A great property manager is key to success in real estate. Finding a good manager is more important than finding a good real estate property.

  • A great property manager often hears of great deals before real estate agents do, which makes them even more valuable

  • Always reflect on Colonel Sanders when debating taking risks. At the age of 66, he lost his business and began to live on his Social Security check. He then went around the country trying to sell his recipe for fried chicken and was turned down 1009 times before someone said yes and then went on to become the creator of KFC

  • ***Busy people are often the most lazy, they tend to focus all their time on work and not balancing the hard things in life like relationships and health. "Rich" people are those that can balance all the demands of life***

  • Rich dad believed that the words "I can't afford it" shut down your brain. "How can I afford it?" opens up possibilities, excitement, and dreams

  • Focus on "paying yourself first" over your creditors to motivate you to continue to build your asset column to pay off your creditors.

    • "Who do you think will complain louder if I don't pay them - me or my creditors" "Your creditors will definitely scream louder and you wouldn’t say anything if you didn't pay yourself" therefore paying yourself first helps build out your asset column (using that payment to buy assets) and pressures you to find ways to pay your creditors

  • Forcing myself to think about how to make extra money is like going to the gym and working out with weights but for the mind

  • Remember, what you know makes you money and what you don’t know loses you money. There is no benefit of being arrogant to try and hide your own ignorance - you will not make money this way

  • Choose to analyze instead of criticize. Cynics criticize, but winners analyze and spot overlooked opportunities that others have missed

Chapter 8: Getting Started

  • "In real estate, I can go out and in a day come up with four or five great potential deals while the average person will go out and find nothing, even looking in the same neighborhood. The reasons are that they have not taken the time to develop their financial genius"

  • 10 step process to get started

    • Find a reason greater than reality

    • Make consistent daily choices to work towards long term goals

    • Choose friends carefully

      • Friends could exceptionally accelerate your learning and understanding by simply being able to talk about topics that both interest you (e.g. rich people typically have a lot of rich friends).

      • However, be true to yourself and be willing to not go with the crowd. It is usually the crowd that shows up late that is slaughtered. "If a great deal is on the front page its usually too late then"

    • Master a formula and then learn a new one

      • Similar to the saying "You are what you eat" it is also true that "You become what you study" Therefore be careful what you learn. Learn multiple things so you don’t end up studying something so deeply that you end up no longer enjoying or it isn’t profitable.

      • In today's fast changing world, it's not so much what you know anymore that counts, because often things become old quick. It is how fast you learn.

    • Pay yourself first

      • If you cannot get control of yourself, do not try to get rich. This is what makes lottery winners go broke after winning millions - the lack of self-discipline.

      • "I would venture to say that personal self-discipline is the number-one delineating factor between the rich, the poor and the middle class.

    • Pay your brokers well; the power of good advice

      • What I find funny is that so many poor and middle-class people insist on tipping restaurant help 15-20%, even for bad service, but complain about paying a broker 3-7%. They enjoy tipping people in the expense column and stiffing people who help build the asset column.

      • Think of them as Partners and invest in intelligent ones

      • This is why companies have a board of directors to help them grow and make decisions. Think of yourself as a company and who would be on your board of directors to help you succeed.

    • Be a Giver; power of getting something from nothing

    • Use assets to buy luxuries not your income/salary

    • Choose proper heroes

      • By having heroes, we tap into their genius by learning more about them and because they make it "look easy", they inspire us to try.

    • Teach and you shall receive

To Do List in Abbreviated Form

Stop doing what you're doing

Take a break and assess what is working and what is not working. The definition of insanity is doing the same thing over and over and expecting a different result therefore stop doing what is not working and look for something new.

Look for new ideas

Try and read on new topics and unique subjects. They can provide formulas that you may be able to utilize in your own personal life that you didn’t expect to.

Speaking to them will enhance your goal progression than any book or anything in your current job.

Take class, read, and attend seminars

These can pay exponential dividends compared to their initial cost based on the ideas that come out of them and the people you may meet

Make lots of offers

The more offers you make the more you will learn how to make better ones in the future.

Think of buying and selling as a fun game. Make an offer and someone might say yes.

Remember to make offers with "escape-clauses" such as "subject to approval by my business partner etc.". This allows you to get a heat check around the price you are offering without having to commit.

Jog, walk, or drive a certain area once a month for 10 minutes

You sometimes find your best real estate investments this way.

Notice real estate signs that are up for a long time - this might mean the seller might be more agreeable to a deal.

Talk to postal officers, retailers moving in to better understand the area and opportunity.

Visit the town council (or ask for meeting minutes) to hear the problems citizens are having with the area.

Shop for bargains in all markets

When the supermarket has a sale on toilet paper, consumers run in and buy it up but when the housing or stock market has a sale, most often called a crash or correction the same consumer will often avoid it even though they can afford it. Always remember: Profits are made in the buying, not in the selling.

Look for people who want to buy first. Then look for someone who wants to sell.

If there is interest in certain pieces buy a pie and sell the pieces so you can end up having your own slice for free (ex. If people are interested in land but don’t want a large piece, buy the large piece divide it up and sell the pieces for a profit).

Think Big

Businesses love giving volume discounts so even if you are a small company or buyer, group up with other owners and friends to be able to negotiate down the price.

Small people remain small because they think small, act alone or don't act at all.

Action always beats inaction

"One of the reasons the rich make more money is simply because they have more self-confidence. They have more self-confidence because they are less afraid of losing."


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