Rich dad poor dad for teens
Rich dad poor dad for teens
20 May 2022 . Read Time: 2 min 53 sec.
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One-line summary: The book is all about, a kid judging the statements of both his rich dad and poor dad. Also how there statements help him in financial literacy, and educate what exactly the wealth is. Readable: Grade 5 (may be the pay yourself first, concept in chapter 9 is bit hard to understand for a grade 5). Do I recommend: Strongly Recommended.
In-depth summary: The author teach us about the 6 lessons one should understand to be rich.
Lesson 1 # The Rich Don't Work For Money
Lesson 2 # Why Teach Financial Literacy?
Lesson 3 # Mind Your Own Business
Lesson 4 # The History of Taxes and the Power of Corporations
Lesson 5 # The Rich invent Money
Lesson 6 # Work to Learn Don't Work for Money.
He gives in depth explanation of all lessons with examples which is amazing and easy to understand. In Lesson 1 # he explains about the fear and greed (desire) and how controlling the emotions make money work for us. He explains what exactly the rich is and how the mentality of being rich impact on us being rich.
In Lesson 2 # he teach us about why everyone needs financial literacy, Understanding the difference between the assets and liabilities and buy assets. He teach us what wealth actually is and let's understand wealth is the measure of the cash flow from the asset column compared with the expense column. So if you want to increase the expenses first you must increase your cash flow from the assets to maintain the level of wealth. The chapter ends with one good observation which is the rich buy assets the poor only have expenses the middle class buys liabilities thinking they are assets.
In Lesson 3 # he says to mind your own business instead of minding someone else's business and make them rich. The mean of mind your own business here is to build and keep your assets column strong. He discuss about the difference between the profession and business, how people were confused about it. He talk about the net worth and much about the taxation which led the net worth to be worth less. He talks about acquiring the assets that you love will make you understand to be rich. Buy the liabilities from the cash flow of your assets. Again understand the one and only rule: understand the difference between the assets and liabilities.
In Lesson 4 # One of the best and more knowledge is been found in this lesson. He talks about the history of taxes and explains how the government hit the poor and middle class in their eyes with there own fingers pointed to punish the rich. And he also tells how the rich escape this war which is against them. He explains how owning a corporation help us from paying taxes and why one need to have a corporation. That lines If you own a corporation vacations become board meetings and Car payments, insurance, repairs become company expenses. Corporation earns, spend everything they can and they pay taxes on what is left whereas employees earn and get taxed and then try to live on what is left. He shares the knowledge one should have to expertise the financial IQ, they are accounting, investing, understanding markets, understanding the law. There is lot more must reread to make much sense if you didn't get at first go.
In Lesson 5 # You find him talking about the fear, self doubt and courage in one self's. He says for being financial genius you require technical knowledge as well as courage. One statement "If fear is too strong, the genius is suppressed". He also speaks about why change is important in everyone, as world moving much faster you being with old ideas will leave you behind. He phrase it as "Old ideas are biggest liabilities".
In Lesson 6# He talks why education is more valuable than money and also tells why one should learn multiple skills instead of specializing the single skill. It has most interesting lines till I read of book completely. How sells and marketing skills helps in everyone's life. How and what management skills are needed for success. One good line "the better you are at communicating, negotiating, and handling your fear of rejection, the easier the life is" and "Know a little about a lot".
In the next chapter he speaks about the five reasons why financially literate people still not develop abundant asset columns. They are fear, cynicism, laziness, bad habits, arrogance. The chapter is to overcome the above to be better at finance.
Coming chapter he offer us ten steps as a process to develop the god given powers. The powers which we have, they are in-built but need to recognize by yourself. Few good words from the chapter, "Intelligence combined with arrogance equals ignorance", "Smart investors don't time markets". If they miss a wave, they search for the next one and get themselves in position. You want to hear about the next boom, get in and get out before the next bust. It is how fast you learn, that skill is priceless. He talk about the pay yourself first concept in this chapter.
Last chapter how actions are more important after learning and also discuss about the actions to get a better deals.
My Thoughts: If we read it like a story its a wonderful one with many moral lessons useful in development of financial literature, and also it teaches how to judge when you got one to choose from the two statements from two important people. Such an amazing book. I completely read this book in 3-4 days as I got interested what he's gonna talk next. The morals helped me in every spending of my dollar(as my employee), I'll try to make a right choice of assets over my liabilities. And last but not least, Judging someone wealth by their net worth is stupidity.
End Note: One great book to suggest anyone.
American Businessman and author
Author of more than 26 books
Career fields: Personal finance, business investing
Other Books:
Rich Dad Poor Dad
Cashflow Quadrant
The business school for people who like helping people
The real book of real estate
Midas touch: Why some entrepreneurs get rich and most don't.
Robert's Website
Few good lines from the book
That each transaction could impact their monthly cash flow
He know that the world has changed, but the education has not changed.
The price of stock usually goes up when the downsizing is announced.
Each child needs more education, different education. And they need to know the rules. The different sets of rules.
Proper physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth. Laziness decreases both health and wealth.
Educated dad advised him to work for a corporation, Rich dad advised to own the corporation.
The subject of money is taught in home not in school.
One dad taught me how to write an impressive resume so I could find a good job, the other dad taught me how to write string business and financial plans so I could create jobs.
There is difference between being poor and being broke. Broke is temporary, and poor is eternal.
Money is one form of power. But what is more powerful is financial education. Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth.
We only memorize historical dates and names, not the lesson.
Learning how to have money work for you is a lifetime study.
Emotions are what make us human. Make us real. The word 'emotion' stands for energy in motion.
First handle fear and desire(greed) and you get rich.
Soon, there will be such a horrifying gap between the rich and the poor that chaos will break out and another great civilization will collapse.
Retirement does not mean not working.
Money without financial intelligence is money soon gone.
If you want to be rich, you need to be financially literate.
Poor acquire the expenses, middle class acquire liabilities thinking of them as assets and rich acquire assets.
Assets put money in my pocket and liabilities take money out of my pocket.
He who has the gold makes the rules
An intelligent person hires people who are more intelligent than they are.
Once you understand the difference, concentrate your efforts only buying income-generating assets.
Business that do not require my presence. I own them, but they are managed or run by other people. If I have to work there, it's not a business. It become my job.
With small companies, my investment strategy is to be out of the stock in a year.
My real estate strategy is to start small and keep trading the properties up for bigger properties and therefore delaying paying taxes on the gain. This allows the value to increase dramatically. I generally hold real estate less than seven years.
Once a dollar goes into your asset column, it becomes your employee.
The real reality is that the rich are not taxed. It's the middle class who pays for the poor, especially the educated upper-income middle class.
True capitalists used their financial knowledge to simply find a way to escape. They headed back to the protection of a corporation.
A corporation is merely a legal document that creates a legal body without a soul.
The world is filled with talented poor people.
Job is an acronym for 'Just Over Broke'.
Education is more valuable than money, in the long run.
Workers work hard enough to not be fired, and owners pay just enough so that workers won't quit.
Instead I recommend to young people to seek work for what they will learn, more than what they will earn.
The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems.
The better you are at communicating, negotiating and handling your fear of rejection, the easier life is.
If you have little money and you want to be rich, you must first be focused, not balanced.
Put a lot of your eggs in a few baskets. Do not do what poor and middle class people do: put their few eggs in many baskets.
Unchecked doubt and fear creates a cynic. Cynics criticize, and winners analyze.
How do you beat laziness ? the answer is a little greed.
Many rich families lose their assets in the next generation simply because there was no one trained to be a good steward over their assets.
You want to hear about the next boom, get in and get out before the next bust.
You become what you study. Choose what you study carefully.
Actions always beats inactions.
"Take responsibility for your finances or take orders all your life. You're either a master of money or a slave to it."
I would venture to say that it is the lack of personal self-discipline that is the NO. 1 delineating factor between the rich, the poor and the middle class.
Paying yourself first is don't get into debt in the first place.
A common bad habit is innocently called "dipping into savings" The rich know that savings are only used to create more money, not to pay bills.
We live in the information age. information is priceless.
In the world of the "asset column", being an Indian giver is vital to wealth.
True, I have lost money on many occasions. But I only play with money I can afford to lose.
If a person cannot master the power of self-discipline, it is best not to try to get rich.
Too often today, we focus to borrowing money to get the things we want instead of focusing on creating money.
Awaken the financial genius that lies within you, your genius is waiting to come out.
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