Summary of Poor Dad, Rich Dad

Poor dad: finishes undergraduate course in less than two years and got Phd
Rich dad: never finishes grade eight
Both have different ideas on the matter of money. It is difficult to compare the two father
esp, when they both starts their early career at the same time (they both not rich or poor
yet)
Go to school, work hard and find good job. Both dads encourage education but offer
different courses of study.
Why the schools or governments do not teach children about money and let this discussed
at home with poor parents?
The love of money is the root of all evils. (poor dad)
The lack of money is the root of all evils. (rich dad)
I cant afford it: teaches people to stop thinking (poor dad)
How can I afford it? Teaches people to think (rich dad)
Physical exercise increases health, mental exercise increases to wealth. Laziness
decreases both health and wealth.
Study hard to work for a good company.
Study hard to find a company to buy.
Try to be a smart person
Try to hire smart person
The reason I am not rich is because I have you kids
The reason I must be rich is because I have kids
Write a good resume for good job
Write a good financial and business plan to create job
There is a different between being poor and being broke- broke is temporary, poor is
eternal.
Being poor or rich is not on the money we earn but on the thoughts and actions
I don’t work for money! Money works for me!
Lessons learned from rich dad
Lesson 1: The rich don’t work for money (money works for them except poor and middle
man works for money)
Lesson 2: Why teach financial literacy?
Lesson 3: Mind your own business
Lesson 4: The history of taxes and the power of corporations
Lesson 5: The rich invent money
Lesson 6: Work to learn don’t work for money
The rich don’t work for money
Learn to make money by using your head
Life (environment or obstacles) teaches people so life is the best teachers of all not only
lecture or preaching. Life pushes all of us around. Some give up. Others fight. A few
learn the lesson and move on . They welcome life pushing them around. To these few
people, it means they need and want to learn sth
If you cant change people around you so change your self and it is easier to do so
Rat race: the more you earn the more you spend. The fear of not having job and they
when we got job we greed for more money.
Fear and desire leads life to a big trap (rat race)
Lear to use your emotion to think not to think with your emotion
The rich makes money but not works for money
Why teach financial literacy?
Most people do not realize it doesn’t matter how much you make but how much or how
long you keep. Ex. the one who wins lottery can be rich for long because he doesn’t
know how to keep money. We should know the differences between assets and liability
KISS: Keep It Simple Stupid
A fool and his money is one big party
If you find you have dug yourself into a hole… stop digging. The phase used for people
who are in financial crisis or wasting money
House is not asset but liabilities cos it takes money from us through taxes
The rich buys assets, the poor only have expenses, and the middle class buy liabilities
that they think are assests.
Mind your own business (build and keep your asset column strong)? Story of founder of
Mac Do
Mc Do does not only sell hamburger but also as a real estate because he tries to locate his
shop at every good corner of the countries and most parts of the world.
Profession generates income (work for others)
Business generates assets (own a business)
Assets: run a business and hire people if you work there it is no longer a business it is
your job!
Income generating real estate
A rich buy luxury last, the poor and middle class buy luxury first. The rich buy it last
because they want money to stay in asset column and generate income enough to buy
luxury later.
The history and the power of corporation
Robin hood rob the rich and gave to the poor. Tax was used to punish the rich but
eventually the poor and the middle class.Taxes is originally introduced in England and
America as a form of Tax levy to collect money from the people for soldier in the war
with other countries. To escape tax, the rich uses their money in corporation (ship) to
reduce capital and find a new place to do business.
Financial backgrounds come from
1. financial literacy or accounting
2. investing: money works for money
3. understanding market: supply and demand
4. the law
The rich invent money
Work to learn, don’t work for money
JOB: just over broke
Overcoming obstacles
To be continued on page 90