total summary of the book and its essence

1. RICH DAD
POOR DAD
By
Robert T.Kiyosaki
P.VENKATA RAO

2. PUBLISHED: 1997
Robin toru kiyosaki
is an Japanese American
investor, businessman
self-help author, motivational
speaker, financial literacy
activist and occasional
financial commentator.

3. INTRODUCTION
 Does orthodox education provides
knowledge on financial education?
 Why the rich get richer and poor
gets poorer?
 Poor/Middle : I work for money!
Rich : Money work for me!

4. Financial education
Lessons!
#1 The Rich Don't Work for Money
#2 Why Teach Financial Literacy?
#3 Mind Your own Business
#4 The History of Taxes and the Power
of Corporations
#5 The Rich Invent Money
#6 Work to Learn Don't Work for Money

5. #1 The Rich don’t work for
money
POOR&MIDDLE RICH
work for money money work for
them
Fear and greed use emotions to
cause ignorance think
and poverty

6. #2 Why teach financial
literacy?
 Golden rule to be rich: know the difference
between the asset and the liability, and buy
assets.
 Asset :Puts money into your pocket.
 Liability : Takes money from your pocket.

7. Cash flow of poor, middle
and rich
• The poor only have assets.
• The middle class buy liabilities they think are assets.
• The rich buy assets.

8. #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.
Some sources of unearned income:
• Dividends
• Interest Payments
• Rent
• Royalties

9. #4 The History of Taxes
and the Power of Corporations
 Robin Hood : Collect it from the rich and distribute it
to the poor.
Financial IQ
It is made up knowledge from four broad areas of expertise
• Accounting : financial literacy is the ability to read and
understand financial statements.
• Investing : science of money MAKING money
• Understanding market : technical aspect of science of supply
and demand
• Law : To make advantage from various provisions in the law for
growth of the organization.

10. #5 The Rich Invent Money
 Example : graham bell formation of AT&T
 Every person is a genius , but excessive fear & self
doubt are the greatest destructors of personal genius.
 Financial genius requires both technical knowledge
as well as courage. If fear is too strong, the genius is
suppressed.
 The person who has the most timely information
owns the wealth.
 Get creative and take calculative risks

11. #6 Work to Learn Don't
Work for Money
 Job is an acronym for ‘Just Over Broke’.
 The main management skills needed for success are:
 1. The management of cash flow
 2. The management of systems (including yourself
and time with family).
 3. The management of people.
 The most important specialized skills are sales and
understanding marketing.
 To be truly rich ,we need to able to Give and as well
as to receive.

12. Overcoming Obstacles
 Five Obstacles to Financial Independence
1. Fear
2. Cynicism
3. Laziness
4. Bad Habits
5. Arrogance

13. 10 steps to awaken your
financial genius:
The power of spirit.
The power of focus.
The power of myth.
The power of giving.
The power of choice.
The power of association.
The power of good advice.
The power of self discipline.
The power of learning quickly.
The power of getting something for nothing.

14. Why you should read ?
Broaden your vision
Redefine your views about money
How to start and run a company
In short , if you really have dreams to
touch the sky , this book is highly
recommended

15. THANK YOU
ANY QUESTIONS ????