Rich Dad Poor Dad ppt

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Rich Dad Poor Dad : 

Rich Dad Poor Dad Book Summary Capital Partners Learning Session 2002

Introduction : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Introduction Author: Robert Kiyosaki, is a multi billionaire by all standards The book basically is about what people must learn and practice in order to become financially independent. The book talks about two different points of view about attaining financial independence (Rich dad Vs. Poor dad) His poor dad (his biological father), was a PhD holder who worked for Government, but never really attained financial independence, while his rich dad (his friend’s father) did not graduate from high school, but later became a very rich man Parents’ advice of getting good grades and jobs will not necessarily lead to financial independence, because schools do not equip kids with the information needed to ensure financial independence

Lesson 1 – The rich don’t work for money : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Lesson 1 – The rich don’t work for money Don’t work for money i.e. don’t depend on your boss to make you rich Learn how to make money work for you by cutting your expenses moderately, investing wisely and creating opportunities to earn passive incomes outside of salaries Seek to be a business owner and/or an investor, rather than an employee

Lesson 2 – Master Financial Literacy : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Lesson 2 – Master Financial Literacy Financial intelligence equips you with the what is required to make money that will last for generations, while money without financial intelligence is soon gone Financial literacy teaches that it does not matter how much money you make, but how much money you keep It also teaches that Investments can be made at each income level and if you invest today you will guarantee your financial future Differentiate between an asset and liability, and invest in assets Assets generate income, while liabilities generate expenses; i.e. your GSM mobile phone could be an asset or liability depending on what it is used for

Lesson 3 – Mind Your Business : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Lesson 3 – Mind Your Business Mind your own business. i.e. while excelling with your qualifications and keeping your day time job, also look for other opportunities elsewhere to accumulate wealth Do not depend only on a salaried job, or else you will continue to work for your boss, the government and the banks (if you have taken a loan), with little or nothing left to invest in yourself Some sources of unearned income: Dividends Interest Payments Rent Royalties

Lesson 4 – Learn to minimize the taxes you pay : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Lesson 4 – Learn to minimize the taxes you pay Where the cash flows make sense, you are better off managing your finances through a corporation rather than as an employee, because of the different tax advantages you can get As an individual, your income is taxed, and what you have left is your disposable income As a corporation, you first make your money, then you take out your expenses. The profit is what is taxed, hence you pay less tax

Lesson 5 – The rich invent money : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Lesson 5 – The rich invent money Learn by heart that you can use other people’s money to create a financial empire for yourself without necessarily using yours i.e. it takes money for you to make money, but you don’t necessarily have to use yours For you to be wealthy, the earnings from your assets (investments) should be enough to fund your expenses. You don’t qualify to incur additional liability, until you have funded an asset which yields enough income to fund the liability Seek to attain a point where if you resigned from your job, you could fund your lifestyle using unearned income from your investments

Lesson 6 - Work to learn, don’t work for money : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Lesson 6 - Work to learn, don’t work for money Don’t grab a job for what you can earn, pick a job to learn about business systems, about managing people and other skills that would prepare you to run your own business, or manage your own investment Money can be illusion that clouds good judgment. Fear and greed do not allow people make rational decisions

Lesson 6 - Work to learn, don’t work for money : 

© Copyright. Capital Partners Limited. Do not reproduce. Strictly for private use. Lesson 6 - Work to learn, don’t work for money Conclusion The author concluded by stating that parents should teach these lessons to their children early enough, in order to guarantee their children’s financial future It is never too late to start building your financial empire. You could start right now, with your next pay check, or by looking around you, to see which need you can fulfill