Drawing rich dad poor dad telugu pdf his own experiences, Kiyosaki discusses how to create financial independence through investing, property ownership and building businesses. This book is a great read for anyone interested in finances and what it takes to be a wealthy person. In Rich Dad Poor Dad, Robert Kiyosaki summarises the lessons learned from two different perspectives, that of a poor man, and that of a rich man. Drawing on his own experiences, Kiyosaki discusses how to create financial independence through investing, property ownership and building businesses. About the author Robert Kiyosaki has written over 20 books, and Rich Dad Poor Dad can be considered the number one personal finance book ever written. He is passionate about sharing his knowledge and founded the Rich Dad company in 1997 dedicated to providing personal and business financial education. Kiyosaki lives in Arizona with his wife Kim and interestingly as a close relationship with Donald Trump. Kiyosaki rich dad poor dad telugu pdf co-authored two books with Trump and endorsed him in rich dad poor dad telugu pdf 2016 presidential campaign. In this summary This summary will discuss five lessons of the rich that Kiyosaki outlines in his book. Lesson three covers owning your own business and lesson four discusses the history of taxes. Look at Michael Jordan and Madonna. There are other ways to be successful with money, ways that not many people seem to be talking about. Kiyosaki explains that this education at home is the driver behind the rich getting richer, the poor getting poorer and the middle class continues to struggle with constant debt. He believes that the considerable debt that countries face is a result of politicians and government officials having very little education on money, yet being in a position of power. He explains that too many people let life push them around, they let their boss, their job or their families dictate their lives. These are the people who will be successful, they acknowledge the problem and understand that changing themselves, learning and becoming wiser is going to get them where they want to go. The rich have money work for them. The driving force behind their money behaviour is, therefore, fear rather than passion. However, Kiyosaki explains that you need passion if you want to learn anything new or find real success. You cannot be living in fear. No matter what the fear is, the fear is whats driving people to stay put. Kiyosaki explains that in many cases when someone is given more money, say in the form of a pay rise, they only land themselves in more debt than before. They are stuck in the cycle. Most people become a slave to money… and then get angry at their boss. As we previously discussed, the fear of having no money drives us to work hard. But once we are paid, greed sets in and we plan how to spend all of our money on exciting things. Offer them more money, and they continue the cycle by also increasing their spending. This is the Rat Race. Despite the fact that their job may bring them no joy, the continue working because they have a desire for money and the things that money can buy. However, Kiyosaki explains that joy from money is only ever temporary, something new is only new for a very short period of time. And suddenly you are left wanting for more, and to get more, you need more money. The assumption is that money solves all problems and brings joy, but Kiyosaki believes that the reality is that money does almost the opposite. You are blinded by your paychecks. And often these opportunities are missed because everyone is too concerned about the security that a job and a paycheck can bring. Kiyosaki explains that everyone is looking for a quick fix, the magic answer or formula to make their riches. However, he explains that the only way to get rich is to become financially literate. The education is absolutely fundamental. Kiyosaki appreciates that accounting is boring, complicated and dull. However, despite its downfalls, accounting is the most important thing you can learn and understand if you want to make money in the long-term. Keep it simple and straightforward but make sure that they know the essentials. Assets and liabilities Kiyosaki emphasises the importance of understanding that there is a clear difference between assets and liabilities. You cannot spend your life buying liabilities, you need to be buying assets. Kiyosaki explains that rich people acquire assets and poor people acquire liabilities. There should be one clear way to tell whether something is an asset or a liability. Ask yourself, does it put money in your pocket, or take money out. An asset will put money into your pocket, be constantly providing a return. Whereas a liability will simply be sucking up your already limited funds. If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities. And we know by now that spending more is not related to being happier. Kiyosaki explains that too many working professionals are struggling financially, they find themselves working harder and harder but never getting any further. The main reasons that people are entering the workforce with little financial education. Whatever they have been taught in schools tends to be focused on how to make money, they forget about the importance of what to do with it when you have it and how to spend money wisely. Is a house considered an asset or a liability. Kiyosaki explains that the majority of working professionals never actually own their homes, they spend their entire working life paying off a mortgage. The pattern of upgrading and buying a new house every few years leads to new 30-year loans, each one larger than the previous. Kiyosaki believes that having all of your money tied up in your house results in missed opportunities. You are forced to work harder and are fearful of ever being in a position without a regular, steady income. You pour all of your hard earned cash into the house leaving little to invest in any other assets. Owning a house Kiyosaki points out that most people purchase houses that are in fact too expensive, this is often because banks are all too happy to lend big amounts of money with high interest. By purchasing a house that is outside of your reasonable budget you are missing out on opportunities. Kiyosaki explains that you lose time, the time spent paying off your mortgage is time you lose with other assets that could be growing in value. You miss out on additional capital from investments. Often any extra money is spent on maintenance for the house rather than investing. Because they have no money to invest, they simply do not invest. They work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage. Kiyosaki explains that people spend their entire life working for someone else, they are in constant financial strife and they have nothing to show for it when they reach the end of their career. This is what most people think. This is the perspective of the rich. Education Kiyosaki examined the current education system and how they are getting youth ready for the workforce. They focus all of the attention on getting a good job through learning scholastic skills. Students then go on to study engineering, science, arts, armed forces etc. Once they are appropriately prepared and have the right qualifications, they enter the workforce and start earning an income. Whenever Kiyosaki asks someone what their business is, they tend to reply with their job title. Schools encourage students to become what they study. A student studying cooking becomes a chef, someone studying law becomes a lawyer. People are so focused on the career and becoming what they study that they forget about the potential of owning their own business. Instead of focusing on making themselves richer, they dedicate all of their time and energy into making someone else richer. Your business revolves around your asset column, as opposed to your income column. The rich focus on their asset columns while everyone else focuses on their income statements. Kiyosaki recommends to being by keeping your day job rich dad poor dad telugu pdf start focusing on buying real assets. Eliminate any liabilities that you regularly spend money on. Kiyosaki points out rich dad poor dad telugu pdf despite the fact that a bank manager will let you list a car as an asset, cars are actually considerable liabilities. As soon as you use a new car, the value drops 25%, and the value continues to decrease every year. Teach them young and set them up for a successful future by explaining the difference between assets and liabilities. Working there does not count, that becomes a job, not an asset. This can include music, patents, literature. The middle class are the ones who end up paying for the poor. The truly rich generally have a knowledge of the legal structure of corporations and how this power can be used to avoid the rules that taxes employ. Rich people do not voluntarily pay more taxes. Whenever new initiatives are put in place, designed to tax the rich, the rich do their research and push back. The poor and the middle classes do not have the education or the power to allow themselves to push back, so they are the ones who end up paying all of the taxes. Kiyosaki explains that this is made up of considerable knowledge in accounting, investing, understanding markets, and the law. He believes that mastering accounting, investing, marketing and law make making money considerably easier. Kiyosaki believes that the best thing is to know a little about a lot. Not a lot about a little. Look down the road at what; skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race. If this is the approach you want to take, ensure that you work for a company that is unionised. Specialists are well protected within labour unions. These students will likely be moved all around the company, never specialising in just one department to ensure that they understand the entire organisation. This is something that rich people often do with their children or children of their friends. Management skills that should be taught include managing cash flow, managing systems and managing other people. Do you fear losing all of your money. Or do you fear failing all together. Kiyosaki explains that you have to be patient, brave and have a good attitude toward failure. Failure can be seen as part of your education. Losers try to avoid failing altogether, therefore, they never learn. Do you think you are lazy. How do you overcome this. Kiyosaki explains that the right amount of greed, anyone can combat laziness. Greed prompts a motivation, a desire to rich dad poor dad telugu pdf something and make something of yourself. Being arrogant is the ultimate obstacle. Kiyosaki explains that arrogance is just rich dad poor dad telugu pdf combination of ego and ignorance. When you are ignorant about something, you are likely to lose money over it. The rich have money work for them. However, the joy from money is only ever temporary, something new is only new for a very short period of time. Assets generate money whereas liabilities suck up your money. Therefore you need to commit to investing in the right assets. This is made up of considerable knowledge in accounting, investing, understanding markets, and the law. Management skills that should be taught include managing cash flow, managing systems and managing other people. You are a Badass at Making Money is an excellent read for anyone looking for some financial advice with a decent sense of humour. I Will Teach You to be Rich helps you identify where your money is going and gets it working for you so that you can save for the things that will bring you true happiness and lead a rich life. The book outlines a six-week program which identifies how to create a system for optimising your bill payments, savings and investments so that your money goes to all the right places with less than an hour of maintenance a month. It is the ultimate book summary; Available as a 80-page ebook and 115-minute audio book. Guidelines lists 31 rules or guidelines that you should follow to improve your productivity, become a better leader, do better in business, improve your health, succeed in life and become a happier person. This summary is not intended as a replacement for the original book and all quotes are credited to the above mentioned author and publisher.
