Rich dad poor dad book a briefy summary. tells about how rich teaches their children about money that poor dad does not and also tells about savings and start ups

1. SUMMARY ON
SUBMITTED TO SUBMITTED BY
Dr.KUNAL GAURAV T.KRUSHI KUMAR
(MKTG DEPT) ROLL NO-109
SECTION -C

2. Details
RICH DAD, POOR DAD
Author : Robert T. Kiyosaki
Publisher : Plata Publishing , LLC
PrintedinUSA
First Edition : 1997
Category : Economics

3. About the Authors-Robert T. Kiyosaki
"The main reason people struggle financially is because they spent years in
school but learned nothing about money. The result is, people learn to work for
money... but never learn to have money work for them." says Robert.
Born and raised in Hawaii, Robert is fourth-generation Japanese American.
He comes from a prominent family of educators. His father was the head of
education for the State of Hawaii. "After high school, Robert was educated in New
York and upon graduation, he joined the U. S. Marine Corps and went to Vietnam
as an officer and a helicopter gunship pilot.
Returning from the war, Robert's business career began. In 1977 he
founded a company that broughtto the marketthe firstnylon and Velcro "surfer"
wallets, which grew into a multi-million dollar worldwide product. He and his
products were featured in Runner's World, Gentleman's Quarterly, Success
Magazine, Newsweek, and even Playboy.
Leaving the business world, he co-founded in 1985, an international
education company that operated in seven countries, teaching business and
investing to tens of thousands of graduates.
Retiring at age 47, Robert does whathe enjoys most... investing. Concerned
about the growing gap between the haves and have nots, Robert created the
board game CASHFLOW, which teaches the game of money, here before only
known by the rich. Although Robert's business is real estate and developing small
cap companies, his true love and passion is teaching. He has shared the speaking
stage with such greats as Og Mandino, Zig Ziglar, and Anthony Robbins.
Robert Kiyosaki's message is clear. "Take responsibility for your finances or
take orders all your life. You're either a master of money or a slave to it." Robert
holds classes that last from 1 hour to 3 days teaching people about the secrets of
the rich. Although his subjects run from investing for high returns and low risk; to
teaching your children to be rich; to starting companies and selling them; he has
one solid earth shaking message. And that message is, Awaken The Financial
Genius that lies within you. Your genius is waiting to come out.

4. This is whatworld famous speaker and author Anthony Robbins says about
Robert's work.
"Robert Kiyosaki's work in education is powerful, profound, and life
changing. I salute his efforts and recommend him highly."
During this time of great economic change, Robert's message is priceless.
Summary
Robert T. Kiyosaki is a simple 9 year old boy living a simple life with his father, the
educated one (poor dad). Robert regard his biological father as the poor one
because he is educated person but not financially intelligent.
Together with Mike, his best friend they want to become rich because other kids
do not want to play with them, they said they were “poor kids”. That’s the time
they ask help from Mike’s dad, the less educated one (rich dad). He considers his
best friend’s dad as his rich dad because he became his first mentor on financial
literacy.
The rich dad agreed when the two boys said they want to learn how to become
rich. The first lesson that mike’s dad teaches them is how to get out into a “rat-
race “. The rich dad said “Most people are afraid of not having any money. That's
why they take a low paying job. ” He said to them that they must “not work for
money and let the money work for them”.
The rich dad wants the two boys to overcome the fear of working for nothing.
Those teaching give them the lessons that they had adopt it in life. Years after,
Mike inherits his father’s business and grows this into an empire. And like his
father he raises his son to control the business when he gets older.
On the other hand, Robert became successful in life together with his wife Kim
and at the age of 47 he retired. People around keep asking him how to become
rich and he always say that “if you want to become rich, you must need to be
financially literate.” He also said that “Intelligence solves problems and produces
money.

5. Money without financial intelligence is money soon gone.” This teaches the
lesson of teaching people not to be wise with your money once you have it, but
rather be smart with your money before you have it. He also said that in financial
literacy a person must know the difference between an asset and liabilities.
An assetcan put money on your pocket and a liability can take your money out of
your pocket. Robert also point out the idea of “minding your own business”.
In other words, “one should not mind their employer’s business but rather strive
to be their own boss and havetheir own business”. Rich people owned a business
while poor people work for business but anybody can have business as long as
they have determination and these skills cannot be learned from school.
Kiyosaki remember what his rich dad told him about the history of taxes and how
important owning a business can make a person rich and avoid taxes. He explains
that corporations are just a legal body created by a legal document.
The rich used the power of corporation against taxation because it offers a lot of
tax advantages and protection from lawsuits. He also emphasize in the story
about a woman who is a news paper reporter. She has a Master’s Degree in
English Literature.
This woman wants someday to be a bestselling author like Robert but her
novels not seem to go anywherethat’s why shestick into that paper job. She asks
for any suggestion from Robert and he suggested that she must study sales, but
the woman get offended, why would she study sale if she want to be a bestselling
author.
Kiyoski’s point is to study sales in order to know some strategies of
advertising products especially her novels but schooling is not enough, a person
must gain knowledge through experience. The rich people create money; it is not
necessarily that you need to be educated to become rich and successful because
in business it is a matter of using mind and talent.
Although schooling is important but there are some lessons in life that
cannot be learned from school and sometimes it is by a person’s own experience.
In learning’s Robert said “it is important to find employment where you will learn
a lot of different skills even if it means earning less in you take home pay”
meaning, working not for money instead work to learn.

6. Evaluation
The book does a fantastic job teaching how to think about work and
money. I like the way it is explained at a level that anyone can understand,
specifically the concept around how the rich buy assets, and the poor buy
liabilities. This book has valuable lessons for people of all ages.
It was written because the author believes that traditional schooling is also
very important but no longer enough in regards to financing. Let me say right
away that I am very glad it was written and I found the book very valuable.
The thoughts and ideas I obtained from the book have made me realize
that I can control of my financial future. Most people are not rich, wealthy and
not even literate when it comes to the world of money.
Rich Dad Poor Dad simply helps guide the average person to start thinking
differently when it comes to money. It is the best starting point that one can take
on the road to financial literacy.
For all of those who have always believed there is more to life than our
everyday routine and for those who know there has to be a better way, but just
don't know what it is.
You have to read Rich Dad Poor Dad, I guaranty it will open your eyes and
mind, explode the myth that you need to earn a high income to become rich,
challenge the belief that your house is an asset, show parents why they can’t rely
on schoolsystemto teach their kids about money, define once and for all an asset
and a liability and teach you what to teach your kids about money for their future
financial success.
In case you believe working on a company can make you out of struggle,
think again, you will never be rich working for someone else instead, look for
someone that can work for you. Rich Dad Poor Dad will relate to you in so many
ways, and if you’re open minded, it may just help you to change your life.

7. Learning
Chapter 1: Rich Dad, Poor Dad
You can learn some valuable lessons from the two dads but when you compare
them you can see the contrasts between their views about working hard, getting
an education, saving and investing and realizing how habits of the rich and poor
significantly differ. One would say “go to school, and after you finish your studies
find a high paying job”. The other would say “there are some skills you cannot
learn from school”. There are many different views and ideas that can influence a
lot of mind.
Chapter 2: The Rich Don’t Work for Money
Base on the book there are two main emotions which can prevent people
fromdeveloping wealth: fear and desire; fear of not being able to pay expenses or
fear of losing money keep many focus in the day-to-day work, preventing many
from evaluating investments and other sources of income. The desire to keep
physically good looking appearance by buying expensive clothes or even to
become “in with the trend” by buying gadgets drives expenses so high that people
have no choice but to stay focused on their jobs to maintain their lifestyle. Lesson
one is all about understanding those two emotions and stopping them from
hindering one’s success. The Rich Dad was more focused on ways of creating his
own money, money that increases even if you don’t work, rather than waiting for
the next job with a pay raise.
Chapter 3: Why Teach Financial Literacy?
Financial literacy is simply means the study of managing one’s finances.
There are a few basic terms one would need to know in order to understand
financial literacy. The first is Incomeand Expenses. “Income” is simply the amount
of money you earn like wages, salaries, etc. “Expenses” are things like taxes, food,
rent, clothes, fun, and transportation. The second one is the Assetand Liabilities.
An “asset” is something that puts money into your pocket like stocks, bonds,
investments. A “liability” is anything that takes money out of your pocket home
mortgages, loans, credit card debts. The rich keep his income and used the return

8. of their investment to cover up their expenses. While the poor uses their salaries
and wages to cover up their expenses. Itsimply means one mustinvest to cover
his expenses rather than waiting for the pay raise.
Chapter 4: Mind Your Own Business
As mentioned on the previous chapter, focusing on your asset is the key
quality that must be developed in order to gain wealth. The rich focus on
improving the size of their investments rather than simply waiting or demanding
pay rises in their income. This means keep your expenses low, reduce your
liabilities and build a base of solid assets.
Chapter 5: The History of Taxes and the Power of
Corporations
By creating a personal corporation, the rich are able to avoid many of the
personal taxes because it offers a lot of protection from them and there is a
corporate exemption. But take note that not paying taxes is called tax evasion and
it is illegal! By filing as a corporation, the rich are able to mitigate their losses to
only the amount they invested in the corporation. They are able to pay taxes after
they pay for expenses. For people who have jobs, it’s the opposite case where
taxes are taken out of pay checks before one is able to cover expenses. In
Comparison the rich people with corporations earn, spend and pay taxes while
the people who work for corporations earn, pay and spend taxes.
Chapter 6: The Rich Invent Money
Behind the wealth, a combination of financial intelligence and a little bit of
guts is what behind in this chapter. Self-doubt holds back a lot of people. In order
to gain wealth, self-confidence is really needed. While saving at the bank seems
secure, it is not worthwhile because savings rates are often below the rate of
inflation. “Scared money doesn’tmake money.” Kiyosaki follows the same logic, 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.

9. “Find the game where you can win, and then commit your life to playing it; and
play to win.”
KEY LESSONS
We are aware of the fundamental problems of working for money, I will sum up a
few of the key lessons from the book which can help you achieve a life where you
are no longer dependent on your paycheck and social security.
1. For most people, their profession is their income. For rich people, their assets
are their income.
2. If I want to buy something, I must first generate enough cash flow from my
assets to cover these expenses. Buy luxuries last, not first.
3. Excess cash flow generated by my assets should be reinvested into other
assets.
4. Do not simply aim for more income, aim for more assets.
5. Keep your expenses low and reduce your liabilities.
6. Create a corporation to protect your assets and reduce tax expenses. An
employee earns, gets taxed, and then spends what is left. A corporation earns,
spends everything it can, and then gets taxed on whatis left. This is the biggest
legal loophole that the rich use!
7. Know a little about a lot. Learn something about accounting, investing,
markets, the law, sales, marketing, leadership, writing, speaking, and
negotiating. An investment in knowledge pays the best interest.
8. Work to learn, don't work to earn. Find a job where you can learn one or more
of the above mentioned skills.
9. Do not simply buy investments. First invest in learning about investing.

10. 10.You will become what you study, so choose your study materials carefully.
Find people who are the best in their field. Then study and emulate them.
11.Every rich person has lost money at some point, but many poor people have
never lost a dime. Playing not to lose money means you will never make
money. "Winning means being unafraid to lose."
12.Failure inspires winners and defeats losers. When something does not work
out the way you planned, let it inspire you to try a different approach. Learn
and move on.
13.Be in control over your emotions. Do not let fear or opinions of the general
public dictate your actions. When stock prices decline, people run away.
However, when the local supermarket has a sale, people buy as much as they
can.
14.Most sellers ask too much. It is rare that the asking price is lower than
something is worth.
15.Surround yourself with people who are smarter than you, and pay them well!
16.Saying "I can't afford it" shuts down your brain. Asking "How can I afford it?"
opens up your brain and triggers your financial genius to come up with a
creative solution.
17.Pay yourself first. Each month, first invest a certain amount of money into
income generating assets before you pay your bills. You come up short? Use
this pressure to pay to inspire you to come up with innovative ways to get
enough money to pay the bills before the bill collector comes knocking at your
door. This is a difficult, but very important principle. However, it does not
mean you should be irresponsible. Always pay your bills. Justpay yourself first,
not last. If you pay yourself last, you would feel no pressure, but you would
probably not come up with new sources of income either.
18.Have a clear purposein mind. Why do you want to earn more passive income?
For me, because I do not want to work all my life. I want to have control over
how I decide to spend my time. Also, I want to support my parents financially,

11. because they have been working hard all their life and they deserve an
amazing retirement. Write down yours, because it will keep you motivated.
19.Listening is more important than talking. Do not constantly argue and think
with your mouth, but instead ask questions and absorb new ideas.
20.On the market: do not follow the crowd, and do not try to time the market.
Profits are made when you buy, not when you sell.
CONCLUSION
Not everyone seems pleased with the rather blunt way Robert Kiyosaki explains
these money making principles in his book, and I partially agree. However, there is
much knowledge to be gained if you are able to look past that layer. If you found
these lessons useful, please share this article with people that you care about,
because I truly believe that applying these principles consistently can lead to
tremendous results!