Rich Dad Poor Dad for Teens
By: Robert T. Kiyosaki
Introduction
• Robert called his dad “poor dad” and his friend’s dad “rich dad” because he was making a dramatic point about the different ways people think about money and the goals they set. • The two dads were different because of the ways they view life and success
Introduction Continued
• They taught Robert their thoughts about money and how to achieve power. • School is not the only place you can learn. • Financial literacy is about being good at something, and talking about money requires a whole new language • Success in life doesn’t mean that you have a lot of cash. • This book will teach you to make your own money grow faster, and important things Robert learned growing up.
Chapter 1
• This is not the first time I heard of learning styles. • I have taken a self portrait profile. • The idea that everyone is smart in different ways is something I agree with because not everyone is book smart but it doesn’t mean that they don’t know a lot about something else. • My winning formula would be musical, vision, interpersonal, and intrapersonal.
Chapter 1 continued
• Discovering your learning style and you personal genius is the first step to having confidence. • Confidence that allows you to see and pursue opportunities and to take risks. • Chances are you’ll see a connection between what you do well in and what you enjoy doing. • The best way to get what you want it to believe you can get it
Chapter 2
• If I had a job and worked for a salary it would lead you right into a rat race. • Robert’s dad meant that some people want money so bad they are willing to do whatever it takes to get more. I have heard his quote before. • Mike’s dad meant that the lacking money makes it harder for people to live and that people need money to survive.
Chapter 2 continued
• The more positive you think the more likely you are to try and achieve your goal. • Learn to manage risks • Invest and save to make more money • It is possible to make a choice to be a “have” or a “have-not”. • Your work is to discover new possibilities.
Chapter 3
• Robert’s first on-the-job, hands-on, financial education was learning about a whole new learning style. • At first Robert thought teaching was talking or a lecture. • Money is an illusion because you can see it but it can not always be achieved. • The solution rich people already know is: work to learn and to have your money work for you.
Chapter 3 continued
• If you do not need money, you will make a lot of money • Robert learned not to blame other people for his own desires and for his own decisions. • He also learned not to let money bully him. • Take responsibility for your own actions
Chapter 4
• Robert was willing to work for nothing because he was supposed to work to learn and not to earn • The boys turned down the offer because they knew he was testing them • By working for free they learned that the sooner you forget about needing a paycheck the easier your life will be when you are adults.
Chapter 4 continued
• Starting the comic business worked out well for them because they ended up making a good amount of money • They kept their promise to the distributer and they kept their commitment to Mrs. Martin and Rich Dad. • The best part of the business was that it ran smooth and practically ran itself.
Chapter 5
• Earned income is taxed the highest. • Passive income is taxed the lowest. • The 2nd most important thing to remember about income is to buy assets. • The most important thing to remember is to know the difference between assets and liabilities.
Chapter 5 continued
• Rich people acquire assets. The poor and middle class acquire liabilities but they think they are assets. • The reason everyone is not rich is because people do not know the difference between an asset and a liability. • An asset is anything that you own that is worth something. • Most things you own are an asset because it’s not putting money in your pocket until it is sold.
Chapter 5 continued
• Liabilities take money out of your pocket. Some liabilities are the T.V. and the computer in your room. • Owning a house is not an asset because its taking money out of your pocket to furnish it, repair it, and to pay taxes on it. • Doodads are things that go down in value the minute you buy them. • The first step to take on the path to buying assets is for you and your friends to keep your eyes and ears open for business opportunities.
Chapter 6
• 2 parts of a financial statement are an income statement and a balance sheet. • Cash flow is the pattern of money coming in and going out. • It’s possible to make money and still be poor because the amount of earned income is not directly proportional to your total wealth.
Chapter 6 continued
• The differenced between rich dad’s and poor dad’s financial statements are that rich dad has more assets and poor dad has more liabilities. • Once a dollar goes into your asset column it becomes your employee.
Chapter 7
• The rat race is the endless cycle of earning money and paying bills. • Ninety percent of the population live in the rat race. • The Fast Track is where your assets are earning money for you and you’re getting passive income.
Chapter 7 continued
• Playing games give you practice for life because its experience without spending real money. • Financial Intelligence means creativity in solving financial problems.
Chapter 8
• You can go from being an employee to being an entrepreneur when you’re in business for yourself. An entrepreneur could turn dog walking into a neighborhood business and charge money. • Robert continued with his first job stocking shelves because he believed he would learn something from Rich dad. • Rich dad says work to learn, not to earn. • Work to earn means that your working to earn money. • In order to create a fair exchange you must learn what each job means to you.
Chapter 8 continued
• The common mindset about the best preparation for success is