Rich Dad Poor Dad

QHB's 10 Points of Focus and Summaries

Rich Dad Poor Dad 10 Points:

1. Contrasting Mindsets: Kiyosaki contrasts the advice from his "Rich Dad" and "Poor Dad," highlighting the importance of comparing different viewpoints to form one’s own decisions.

2. Active Thinking: The book emphasizes the power of asking questions like “How can I afford it?” rather than saying “I can’t afford it,” to engage the brain in problem-solving and opportunity-seeking.

3. Financial Independence: Rich Dad teaches that instead of working for money, one should make money work for them through investments and creating businesses that generate passive income.

4. Financial Literacy: Understanding the difference between assets and liabilities is crucial. An asset puts money in your pocket, while a liability takes money out.

5. Mind Your Own Business: Focus on building and managing your own assets, rather than solely relying on a paycheck from a traditional job.

6. Power of Corporations: Using the example of taxes and corporations, Kiyosaki explains the benefits of owning a corporation for better tax and financial management.

7. Inventing Money: Financial intelligence and timely information are key to creating wealth. An educated mind can turn opportunities into wealth and manage risks effectively.

8. Work to Learn: The book advocates for learning various skills, especially in sales and marketing, as they are essential for financial success.

9. Overcoming Obstacles: Common barriers to financial success include fear, cynicism, laziness, bad habits, and arrogance. Successful individuals learn to manage these obstacles.

10. Taking Action: Emphasizing the importance of self-discipline, Kiyosaki encourages taking action and being open to new ideas to achieve financial freedom and convert earned income into passive income.

QHB's Selected Book Quotes and Summaries

*** RTK = Robert T. Kiyosaki (The Author)

=== Introduction: Rich Dad ===

# “Having two dads offered me the choice of contrasting points of view: one of a rich man and one of a poor man. Instead of simply accepting or rejecting one of the other, I found myself thinking more, comparing, and then choosing for myself”. - RTK

# “One is a statement, and the other is a question. One lets you off the hook, and the other forces you to think. … by automatically saying the words “I can’t afford it,” your brain stops working. By asking the question “How can I afford it?” your brain is put to work.” - RTK

# “My brain gets stronger everyday because I exercise it. The stronger it gets, the more money I can make.” - Rich Dad

=== Chapter One: LESSON 1 THE RICH DON’T WORK FOR MONEY ===

# “You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich. … I will say it again: Keep going, Don’t quit.” - Father of RTK

# “Being able to know when to make quick decisions is an important skill.“ - Mike’s Dad (Rich Dad)

# “Life pushes all of us around. Some people give up and others fight. … They welcome life pushing them around. To these few people, it means they need and want to learn something. They learn and move on. Most quit, and a few like you fight.” - Rich Dad

# “So much of life is out of our control. I’ve learned to focus on what I do have control over: myself. And if things must change, first I must change.” - RTK

# “… I call lesson number one: The poor and the middle class work for money. The rich have money work for them.” - RTK

# “Most people have a price. And they have a price because of human emotions named fear and greed. First, the fear of being without money motivates us to work hard, and then once we get the pay check, greed or desire starts us thinking about all the wonderful things money can buy. The patterns are set.” - Rich Dad

# “ How did you feel when I tempted you with a pay raise? Did you notice your desires rising? By not giving in to your emotions, you were able to delay your reactions and think.” - Rich Dad

# “Once a person stops searching for information and self knowledge, ignorance sets in. … It is ignorance about money that causes so much greed and fear.” - RTK

# “By not getting paid for our work at the store, we were forced to use our imaginations to identify opportunity to make money.” - RTK

# “By starting our own business, … we were in control of our own finances, not dependent on an employer. The best part was that our business generated money for us, even when we weren’t physically there. Our money worked for us.” - RTK

=== Chapter Two: LESSON 2 WHY TEACH FINANCIAL LITERACY ===

# “If they think money will solve problems, they will have a tough ride. Intelligence solves problems and produce money. Money without financial intelligence is money soon gone.” - RTK

# “If you want to rich, you need to be financially literate.” - Rich Dad

# “Rule #1: You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. It is rule number one. It is the only rule.” - RTK

# “An asset is something that puts money in my pocket whether I work or not. A liability id something that takes money out of my pocket. This is really all you need to know.” - RTK

# “An intelligent person hires people who are more intelligent than he is.” - Rich Dad

# “The philosophy that a pay raise means you can buy a larger home or spend more, is the foundation of today’s debt-ridden society.” - RTK

# “Wealth is a person’s ability to survive so many days forward - or if I stopped working today, how long could I survive?” - R. Buckminster Fuller

=== Chapter Three: LESSON 3 MIND YOUR OWN BUSINESS ===

# “Lesson 3: Start minding your own business. Keep your day time job, but start buying real assets, not liabilities. … When I say mind your own business, I mean to build and keep your asset column strong.” - RTK

# “Keep expenses low, reduce liabilities, and diligently build a base of solid assets.” - RTK

=== Chapter Four: LESSON 4 THE HISTORY PF TAXES AND THE POWER OF CORPORATIONS ===

# “He (Poor Dad) spoke the virtues of “working your way up the corporate ladder. … When I told my rich dad of my father’s advice, he only chuckled. “Why not own the ladder?” was all he said” - RTK

# “I remind people that financial IQ is made up of knowledge from four broad areas of expertise: Accounting … Investing … Understanding markets … The Law.” - RTK

=== Chapter Five: LESSON 5 THE RICH INVENT MONEY ===

# “ “Why should I become financially literate? “ And I answer, “Just to have more options.” - RTK

# “Today, wealth is in information. And the person who has the most timely information owns the wealth.” - RTK

# “The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth seemingly instantaneously. An untrained mind can also create extreme poverty that can crush a family for generations.” - RTK

# “I have said it before, but it’s worth repeating. Financial intelligence is made up of these four main technical skills: Accounting … Investing … Understanding Markets … The Law.” - RTK

# “It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.” - RTK

# “It is this second type of investor who is the more professional investor. … If you want to be the second type of investor, you need to develop three main skills: Find an opportunity that everyone else missed. Raise money. Organize smart people.” - RTK

# “There is always risk, so learn to manage risk instead of avoiding it.” - RTK

# “Luck is created. So go create yours.” - RTK

=== Chapter Six: LESSON 6 WORK TO LEARN - DON’T WORK FOR MONEY ===

# “So tell me why I should study sales?” … On her pad she had written: “Robert Kiyosaki, best-selling author.” “it says best selling author, not best-writing author.” I said quietly.” - RTK

# “Life is much like going to the gym. The most painful part is deciding to go. … After the workout is over, I am always glad I talked myself into going.” - RTK

# “The main management skills needed for success are: Management of Cash Flow, Management of systems, and Management of people.” - RTK

# “Sales = Income. Your ability to sell - to communicate and position your strengths - directly impacts your success.” - RTK

# “The skills of selling and marketing are difficult for most people, primarily due to their fear of rejection. The better you are at communicating, negotiating, and handling your fear of rejection, the easier life is.” - RTK

# “They are one skill away from greatness.” - RTK

=== Chapter Seven: OVERCOMING OBSTACLES ===

# “There are five main reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow. The five reasons are: Fear, Cynicism, Laziness, Bad Habits and Arrogance.” - RTK

# “Winning means being unafraid to lose.” - Frank Tarkenton

# “Everyone wants to go to heaven, but no one wants to die.” - Texas Saying

# “Failure would only make him stronger and smarter. It’s not that he wanted to lose. … He would take a loss and make it a win. That's what made him a winner and other losers.” - RTK

# “I always tried to turn to every disaster into an opportunity” - John D. Rockefeller

# “FOCUS: Follow One Course Until Successful.” - RTK

# “He believed that the words “I can’t afford it” shut down the brain. It didn't have to think anymore. “How can I afford it?” opened up the brain and forced it to think and search for answers.” - RTK

# “Everyone has a fear of losing money; the difference is how you handle fear and losing.” - RTK

=== Chapter Eight: GETTING STARTED ===

# “The three most important management skills necessary to start your own business are management of: Cash flow, People and Personal time.” - RTK

# “If a person cannot master the power of self-discipline, it is best not yo try to get rich.” - RTK

# “A truly intelligent person, on the other hand. Welcomes new ideas.” - RTK

=== Chapter Nine: STILL WANT MORE? HERE ARE SOME TO DO’S ===

# “Stop doing what you’re doing. … The definition of insanity is doing the same thing over and over and expecting a different results. Stop doing what is not working, and look for something new.” - RTK

# “Search, offer, reject, negotiate, and accept are all parts of the process of almost everything in life.” - RTK

# “Action always beats inaction. You must take action before you can receive the financial rewards. Act now!” - RTK

=== FINAL THOUGHTS ===

# “increased financial intelligence can be used to solve many of life’s common problems.” - RTK

# “Money is only an idea. If you want more money, simply change your thinking. Every self-made person started small with an idea, and then turned it into something big.” - RTK

# “The key to financial freedom and great wealth is a person’s ability to convert earned income into passive and/ or portfolio income.” - RTK

# “Risk comes from not knowing what you’re doing.” - Warren Buffet

# “All of you were given two great gifts: your mind and your time. It is up to you to do what you please with both. With each dollar bill that enters your hand, you, and only you, have the power to determine your destiny.” - RTK

=== END OF BOOK ===