Saturday, December 22, 2012

Rich Dad Poor Dad-By Robert Kiyosaki; Summarized

Chp1 - Rich Dad, Poor Dad

-When we dont have plan, we will always fall into someone else plan

-Rich ppl dun get rich just becos of their educations

-old thinking of "getting gd grades, go to gd college, to secure a gd job" have been pass down for many generations. 95% are "programmed" this way, the safe way.

-children lose interest/sight, cant see e reasons why e importance of getting gd grade/gd job. Generally they are force to follow what e rest is doing, w/o any real focus in life but just short-term goal of getting results for exam becos they are not born self-motivated, only few would want to do so to gain attention/recognition from ppl around them.

-who you choose to follow/learn will lead to a diff destiny

-money is power where e rich "control" e poor

Chp2 - The rich dont work for money

- find ways on how to make money/ make $ work for us.

-haste make worse, grow your "roots" deep enough 1st.

-learn life's lessons, if not life will just push you around, some get angry & push back instead

- " the poor & middle class work for money" " the rich have $ work for them"

-biggest trap -> rat race.

-let no amount of $ tempt u. becos tt should never be ur focus or maybe last.

-fear, greed/desire

-master e power of $

-handling of fear & ignorance -> main cause of poverty/ financial struggle

-learn to use ur emotions to think, not think with ur emotions.

Chp3 - why teach financial literacy?

- intelligence solves problems & produces money. money w/o financial intelligence  is $ soon gone.

-asset's cash flow pattern diff among poor/young vs middle class vs wealthy

-1st buy assets tt will generate e cash flow to pay for e house.

-rich get richer, why mid class struggle, doing what masses do; work for owner/govt/bank

-increase cash flow, b4 increase expenses to maintain wealth.

-increase income generated from assets each mth tt fully cover monthly expenses.

Chp4 - mind ur own business

-macdonald-> ray kroc's advice: his real profession-real estate investment

-assets- 1. business tt do not require ur presence
2.stocks
3.bonds
4.mutual funds
5. income-generating real estate
6. notes (IOUs)
7. royalties from intellectual property such as music, scripts, patents
8. and anything else tt has value, produces income or appreciates and has a ready market.

Chp5 - History of taxes & e power of corporations

-robin hood ideal: taking from rich to give to e poor

- rich are not taxed, upper-income middle class pays for poor

-how e rich play the game; invest commissions in assets-> assets pay for luxuries

-rich always found a way to outsmart them, they understood e power of money

-rich dont simply comply, they react ( search for ways to min their tax burden)
(hire smart attorneys & accountants, persuade politicians to change laws or create legal loopholes)

-The rich with corporations -  earn>spend>pay taxes

- people who work for corporations -earn>pay taxes>spend

-Financial IQ;
1. accounting - financial literacy - identify e str & weaknesses of any business
2. investing - science of money making money - strategies & formulas
3. understanding markets - science of supply & demand - technical, fundamental/economic sense
4. law - protection provided by corporation , wrapped around e technical skills of accounting,
investing & markets aid explosive growth for long-term wealth.

1. Tax advantages - pay for expenses b4 it pays taxes ( corporation )
2. protection from lawsuits - rich control everything, but own nothing - corporations & trusts to protect their assets from creditors.

Chp6 - the rich invent money

- financial genius = techinical knowledge + courage

- seizing opportunities created by e market, somebody was buying, and someone was selling

- plant seeds inside asset column, start small...

- great opportunities are not seen with ur eyes, they are seen with ur mind.

- investing is not buying, its more a case of knowing

- learn to mange risk instead of avoid it, becos there is always risk

Chp7 - work to learn - dont work for money

-make more money/ get promoted, u need to "specialize"

-learning > job security

- leadership is managing people. " if you're not a good leader, you'll get shot in the back"

-" job is an acronym for "just over broke", most workers " live within their means" they work and they pay e bills.

- "workers work hard enough to not be fired, and owners pay just enough so that workers wont quit"

- people used to keep themselves busy working away to pay bills

-importance of business systems

- " give and u shall receive"

-main management skills needed;
1. e management of cash flow
2. e management of systems ( including self & time with family)
3. e management of people

Chp 8 - overcoming obstacles

1.fear :" winning means being unafraid to lose" - " failure inspires winning"

2. overcoming cynicism : (think too much aka "what if" - selfishness)
-"doubts often get so loud tt we fail to act"
-cynics criticize and blind, winners analyze and opened eyes
-finding what people miss is key to any success
-choose not to lose, the mind is closed
-dun let small things/obstacles stop you from achieving big things

3. laziness  : - avoiding something important by staying busy
-cure for laziness = a little greed
- use "how" not "cant"

4. habits : -controlling behaviour
- most ppl give into these bullies/pressure, they pay them and never pay themselves, they get weaker.

5. arrogance - when im arrogant, what i dont know is not important
- what i dont know loses me money
- many ppl use arrogance to hide their own ignorance

Chp 9 - getting started

1. i need a reason greater than reality
- " dont wants" creates/drive "wants"

-e power of spirit. if u ask most ppl if they like to be rich/ financially free, they would say "yes". but then reality sets in. the road seems too long with too many hills to climb. its easier to just work for money & hand e excess over to your broker.

2. i choose daily: the power of choice. tt is the main reason ppl want to live in a free country. we want e power to choose. " time+learn->asset" where excuses rob away "learn"
-invest 1st in education

3. choose friends carefully: e power of association. 1st of all, i do not choose my friends by their financial statements. i have friends who have actually taken e vow of poverty as well as friends who earn millions every year. e point is i learn from all of them, and i consciously make e effort to learn from them.
-"dont listen to poor/frightened people","the sky is always falling"
-"keep ur mind open to both sides of ideas" eg. of experts advice on economic crisis
-" ppl who hurry & catch a wave late usually are e ones who wipe out" eg. bubble tea business

4. master a formula & then learn a new one; power of learning quickly
-" you become what you study"
-" often what you know is old. it is how fast you learn"

5. pay urself 1st: power of self-discipline. lack of it causes most lottery winners to go broke soon.
-skills: manangement of cash flow, ppl, personal time.
- " those who pays everyone else 1st-often have nothing left.

6. pay ur brokers well : power of good advice.

7. be an " indian giver" : power of getting something for nothing.

8: assets buy luxuries: power of focus

9. the need for heroes: power of myth
-" modelling successful ppl/ experts in tt area"
-" if they can do it , so can i "

10. teach & you shall receive : the power of giving

Chp 10 - take action! mind+time= power to determine ur destiny

- here are some to Do's;
 - take a break & assess what is working and what is not.
-look for new ideas.
-take action -> find someone who has done what you want to do
-> take classes
-> make lots of offers/ finding a gd deal, right business, right ppl , right investors
-> look in the right places/ targeting right client
-> look for ppl who want to buy 1st, then look for someone who wants to sell.

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