RICH DAD, POOR DAD - QC Seminars

1 rich DAD, poor DAD. What the rich Teach Their Kids About Money -- That the poor and Middle Class Do Not! ROBERT KIYOSAKI and SHARON LECHTER. is a concentrated business information service. Every week, subscribers are e-mailed a concise summary of a different business book. Each summary is about 8 pages long and contains the stripped-down essential ideas from the entire book in a time-saving format. By investing less than one hour per week in these summaries, subscribers gain a working knowledge of the top business titles. Subscriptions are available on a monthly or yearly basis. Further information is available at rich Dad, poor Dad - Page 1. MAIN IDEA. It's what's in your head that ultimately ends up determining what's in your hands. Therefore, if you want more money, change the way you think. That will automatically change the way you act, which in turn will impact on the results you achieve. It all starts in the mind -- successful people invariably start small and build from there.

2 The same applies in every area of making money. The key is not how big you are when you get going -- it's the ideas that you're harnessing. Take the time to find the best ideas and you can ride it all the way to whatever level of financial achievement you decide upon. Nobody else chooses for you -- it always come down to what you decide. Above all, educate yourself. Develop financial intelligence. Spend time with successful people. read books, attend Seminars and learn how to make money work for you. Your life will be more rewarding and more fulfilling if you just take the time to learn and think about where you're heading. The path to financial wealth doesn't lie in playing it safe. It's far more important to play it smart. Lesson 1-- Instead of working for money, create ways to make money work for you.. Page 2. A job is really a short term solution (getting enough money to pay the bills) to a long-term challenge (building your net worth).

3 Yet many people get locked into such high expenditure habits they are forced into continuing to work for someone else all their lives. Those who build high net worths, however, realize the key is not how much they are paid -- it's finding ways to make their assets work for them generating additional wealth irrespective of what they do with their own personal time. Lesson 2 -- Teach financial literacy so that you can distinguish between an asset and a liability, and buy assets.. Page 2. In life, it's not really how much money you make that counts but how much you keep, and how many generations you keep it. To achieve that takes financial literacy. The foundation of financial literacy is to know the difference between an asset and a liability, and buy assets. The rich build and acquire assets. The middle class and the poor acquire liabilities in the mistaken belief they are assets. Lesson 3 -- Take the time to invest in and build your own business as the foundation of your financial health.

4 Page 3. Your profession or career revolves around the income section of your personal Income Statement. Your business, on the other hand, is centered squarely on the asset column of your personal Balance Sheet. Never confuse your profession with your business. The middle class focus on their profession, and consequently spend their entire lives building someone else's business. The rich , by contrast, focus on building their own businesses. Lesson 4 -- As part of your financial strategy, form a corporation to own the assets you are accumulating.. Page 3. Having a corporation own your assets is universally used by the rich to minimize their liabilities and maximize their opportunities to structure their financial affairs as advantageously as possible. Lesson 5 -- Use the skills of financial intelligence to create ongoing, profitable business opportunities.. Page 4. The main benefit of developing financial intelligence is that it gives you more options -- more opportunities to develop creative solutions to your financial requirements than the standard issue Work hard, save some money on a regular basis'' strategy most people adhere to religiously.

5 Lesson 6 -- Whenever you have to work for someone else, do it to learn something new -- not just for the money.. Page 5. The smart approach to working is to select a job that will teach you something you don't already know rather than on the basis of what you will earn. Lesson 7 -- To achieve financial success, you have to be prepared to overcome the obstacles and roadblocks you'll face. Page 6. The five main reasons people fail to develop abundant assets are: 1. They have a fear of losing rather than making money. 2. They are cynical and don't believe it can be done. 3. They are too lazy to change their habits. 4. They let their habits control their behavior. 5. They're arrogant -- a combination of ego and ignorance. Lesson 8 -- To arrive at your ultimate goal of financial success, you first need to get started.. Page 7. To awaken the financial genius within you and start on the journey to financial freedom, try these steps: 1.

6 Find an emotional reason to start the journey. 2. Reinforce that decision on a daily basis. 3. Choose your friends carefully. 4. Continue learning until you master it; then learn new ideas. 5. Develop the self discipline to pay yourself first. 6. Pay well for good advice from professional advisers. 7. Find ways to make your investments freehold. 8. Use your assets to pay for luxuries, not your capital. 9. Develop some financial heroes -- high achievers. 10. Make the time to teach others what you learn. rich Dad, poor Dad - Page 2. Lesson 1 Lesson 2. Instead of working for money, create Teach financial literacy so that you can distinguish ways to make money work for you. between an asset and a liability, and buy assets. Main Idea Main Idea A job is really a short term solution (getting enough money to pay In life, it's not really how much money you make that counts but the bills) to a long-term challenge (building your net worth).

7 Yet how much you keep, and how many generations you keep it. To many people get locked into such high expenditure habits they achieve that takes financial literacy. are forced into continuing to work for someone else all their lives. The foundation of financial literacy is to know the difference Those who build high net worths, however, realize the key is not between an asset and a liability, and buy assets. The rich build how much they are paid -- it's finding ways to make their assets and acquire assets. The middle class and the poor acquire work for them generating additional wealth irrespective of what liabilities in the mistaken belief they are assets. they do with their own personal time. Supporting Ideas Supporting Ideas An asset is anything that puts money into your pocket. An astute financial strategy is to start a business that will generate money even when you're not physically there. The majority of people, however, are so focused on what they're paid Income Statement Balance Sheet that they miss all the opportunities to achieve this goal.

8 Income Assets Liabilities This creates a couple of paradoxes: Expenses 1. The majority of people work for someone else because it makes them feel safe and secure. In other words, they're working out of fear of not being able to pay their bills. By contrast, the people in society who are paid the most are often so wealthy they don't have to work to pay their bills -- A liability is anything that takes money out of your pocket. they work because they are passionate about whatever it is they are doing. 2. Most people who are paid more money for their work end up Income Statement Balance Sheet getting into more debt rather than building their net worth. Income Assets Liabilities Their expenses rise as their income rises, because of all the desires they have. Expenses The key to overcoming these paradoxes is to learn how to make money work for you, instead of looking at a job or even a career as a way to earn money. If you can achieve that, you start to make fear and desire work for you instead of against you.

9 Understanding the relationship between an Income Statement Ignorance intensifies fear and desire. Instead of thinking with and a Balance Sheet is the key to financial health. The rules are your emotions, learn how to use your emotions to think deceptively easy to understand. In essence, to build a high net creatively. Choose what to think about rather than react to your worth, spend your time building or buying assets. To stay poor emotions and you lay a good foundation to move ahead. or to tread water financially, spend the majority of your time Key Thoughts building liabilities. Most people have a price. And they have a price because of Most people fall into the trap of building liabilities without realizing human emotions named fear and desire. First, the fear of being that's what they are doing -- they are financially illiterate, and fail without money motivates us to work hard, and then once we get to understand the difference between an income statement and that paycheck, greed or desire starts us thinking about all the a balance sheet, and the relationship between the two.

10 Wonderful things money can buy. The pattern of get up, go to This is particularly true with home ownership. Many people work, pay bills, get up, go to work, pay bills is then set. Their lives consider their home to be the greatest asset, and keep working are then run forever by two emotions, fear and greed. Offer them to get into a bigger and better home. Doing so, however, usually more money, and they continue the cycle by also increasing their requires taking on more and more debt, which has to be serviced spending. This is what I call the Rat Race.'' -- therefore they have to work harder to pay the mortgage. -- Robert Kiyosaki and Sharon Lechter By focusing on their home, they are building a liability rather than More money seldom solves someone's financial problems. an asset. In addition, they are: Intelligence solves problems. There is a saying a friend of mine 1. Losing time, when they could have been growing other says over and over to people in debt: "If you find yourself in a assets.