Rich Dad Poor Dad

Robert Kiyosaki tells the story of his two Dad’s in his childhood. His own father and the father of his best friend. While he loved both, they were very different when it came to dealing with finances.

Great leaders are able to inspire people to act. And those who are able to inspire give people a sense of purpose or belonging that has little to do with any external incentive or benefit to be gained.

“There is a difference between being poor and being broke. Broke is temporary. Poor is eternal.

Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.

People’s lives are forever controlled by two emotions: fear and greed.

So many people say, ‘Oh, I’m not interested in money.’ Yet they’ll work at a job for eight hours a day.

You must know the difference between an asset and a liability, and buy assets.

An asset puts money in your pocket. A liability takes money out of your pocket.

Illiteracy, both in words and numbers, is the foundation of financial struggle.
Money often makes obvious our tragic human flaws, putting a spotlight on what we don’t know.
Cash flow tells the story of how a person handles money.
Most people don’t understand why they struggle financially because they don’t understand cash flow.
The number-one expense for most people is taxes.

Higher incomes cause higher taxes. This is known as “bracket creep.”

Once you understand the difference between assets and liabilities, concentrate your efforts on buying income-generating assets.

The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family directly.
Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?
The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.
The rich focus on their asset columns while everyone else focuses on their income statements.

The main management skills needed for success are:

  1. Management of cash flow
  2. Management of systems
  3. Management of people

The most important specialized skills are sales and marketing.

To be truly rich, we need to be able to give as well as to receive.
Giving money is the secret to most great wealthy families.
The primary difference between a rich person and a poor person is how they manage fear.

For most people, the reason they don’t win financially is because the pain of losing money is far greater than the joy of being rich.

Failure inspires winners. Failure defeats losers.