Read this and never be financially broke again!

It’s been more than 10 years since I have started earning money. I started from private tuition when I was a high school student. Over time, I got graduated, moved to Europe for higher study, completed a master’s degree, and later worked as a highly-skilled professional is a reputed multinational company. My income grew significantly over this period. However, after 10 years of earning money, I realized one interesting thing, which is — “I was broke 10 years ago, and I was still broke after 10 years!”. I got very tensed after realizing that and was desperate to know why it happened? I started to find the reasons and the ways to get out of this. Finally, I got to know about the book named “Rich Dad Poor Dad by Robert Kiyosaki”. I read this book completely and it clearly showed all the wrong approaches I have taken in my life. After that, I started to think and take the correct actions that I learned from the book and within couple of months, it changed the financial condition of my life.

Rich Dad Poor Dad by Robert Kiyosaki

This article is mainly about the key points and main stories of the book. I still read and follow this quite frequently to keep myself on the right track. I will highly recommend reading this to keep you remind of the main points and also read the book completely if possible. I have given a link end of this article from where I have also downloaded and read this book. Now, let’s start.

Important points:

• The richest people didn’t get rich because of their educations.
• Instead of saying, “I can’t afford it” say “How can I afford it?”
• Say, “I’m a rich man, and rich people don’t do this”.
• The Rich Don’t Work for Money, money works for them. The poor and the middle-class work for money.
• Don’t blame others for your problems; accept that you are the only reason for your problem.
• Rich people acquire assets. The poor and middle class acquire liabilities, but they think they are assets. To be rich, you’ve got to read and understand numbers
• An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket.
• If you find you have dug yourself into a hole… stop digging.
• Why the Rich Get Richer? They get more income from assets. Expenses are low, Liabilities are low.
• Why the Middle-Class Struggle? Income goes up, Expenses go up. Assets do not increase, Liabilities do increase.
• Rich, poor, and middle class: The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets.
• Wealth is a person’s ability to survive so many numbers of days forward. Or if you stopped working today, how long could you survive?
• Rich people buy luxuries last, while the poor and middle class tend to buy luxuries first because they want to look rich.
• Know the way of reducing tax, don’t let the govt. to take your blood. If you know you’re right, you’re not afraid of fighting back.
• Risk is always diminished if you love what the investment is, understand it, and know the game.
• The best thing about money is that it works 24 hours a day and can work for generations. Keep your daytime job, be a great hard-working employee, but keep building that asset column.
• If you work for money, you give the power up to your employer. If your money works for you, you keep and control the power.
• Job is an acronym for ‘Just Over Broke.’
• If you’re going to go broke, go big.
• Workers work hard enough to not be fired, and owners pay just enough so that workers won’t quit.
• The primary difference between a rich person and a poor person is how they handle that fear.
• Failure inspires winners. And failure defeats losers. It is the biggest secret of winners.
• Pay yourself first, and then pay others.
• What I know makes me money, what I don’t know loses me money.
• Make a list of what you want in life and what you don’t want in life.
• God would not have given us two ears and only one mouth. Too many people think with their mouths instead of listening to absorb new ideas and possibilities.
• Don’t listen to poor or frightened people. Do not follow the crowd if you don’t want to be with 99% of poor people.
• The rich know that savings are only used to create more money, not to pay bills.
• The three most important management skills necessary to start your own business are- Management of cash flow, people, and personal time.
• Only play with money that you can afford to lose.
• If you want something, you first need to give, whatever it is a smile, friendship, love, or money.
• Always take action. Take classes/courses. Make offers. Someone might say “yes.
• Profit is made when you buy, not when you sell.
• Small thinkers don’t get big breaks. If you want to get richer, think bigger first.
• Many of you were given two great gifts: your mind and your time.

Main stories:

• Life is the best teacher of all. Most of the time, life does not talk to you. It just sorts of pushes you around. Each push is life saying, `Wake up. There’s something I want you to learn. “Life pushes all of us around. Some give up. Others fight. A few learn the lesson and move on.
• You boys are the first people that have ever asked me to teach them how to make money. I have more than 150 employees, and not one of them has asked me what I know about money. They ask me for a job and a paycheck, but never to teach them about money. So most will spend the best years of their lives working for money, not really understanding what it is they are working for.”
• It’s fear that keeps most people working at a job. The fear of not paying their bills. The fear of being fired. The fear of not having enough money. The fear of starting over. First, the fear of being without money motivates us to work hard, and then once we get that paycheck, greed or desire starts us thinking about all the wonderful things money can buy. The pattern is then set.” That’s the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money… and then get angry at their boss.
• How do you feel applying for the job, waiting in line for the job interview, get hired, meet with the boss, and later to ask for more money? Terrible? If you choose to work for money, that is what life is like for many people.
• The sooner you forget about needing a paycheck, the easier your adult life will be. Keep using your brain, work for free, and soon your mind will show you ways of making money far beyond what I could ever pay you. You will see things that other people never see. Opportunities right in front of their noses. Most people never see these opportunities because they’re looking for money and security, so that’s all they get. The moment you see one opportunity, you will see them for the rest of your life.
• The assets are large enough to grow by themselves. It’s like planting a tree. You water it for years and then one day it doesn’t need you anymore. It’s roots have gone down deep enough. Then, the tree provides shade for your enjoyment.
• Most people fail to realize that in life, it’s not how much money you make, it’s how much money you keep. We have all heard stories of lottery winners who are poor, then suddenly rich, then poor again. They win millions and are soon back to where they started. Or stories of professional athletes, who, at the age of 24, are earning millions of dollars a year, and are sleeping under a bridge by age 34.
• If you are going to build the Empire State Building, the first thing you need to do is dig a deep hole and pour a strong foundation. If you are going to build a home in the suburbs, all you need to do is pour a 6-inch slab of concrete. Most people, in their drive to get rich, are trying to build an Empire State Building on a 6-inch slab.
• Because students leave school without financial skills, millions of educated people pursue their profession successfully, but later find themselves struggling financially. They work harder but don’t get ahead. What is missing from their education is not how to make money, but how to spend money-what to do after you make it. It’s called financial aptitude-what you do with the money once you make it, how to keep people from taking it from you, how long you keep it, and how hard that money works for you. Most people cannot tell why they struggle financially because they don’t understand cash flow. A person can be highly educated, professionally successful, and financially illiterate. These people often work harder than they need to because they learned how to work hard, but not how to have their money work for them.
• The middle class finds itself in a constant state of financial struggle. Their primary- income is through wages, and as their wages increase, so do their taxes. Their expenses tend to increase in equal increments as their wages increase; hence the phrase “the rat race.” They treat their home as their primary asset, instead of investing in income-producing assets.
• This pattern of treating your home as an investment and 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. This process of increased spending throws families into greater debt and into more financial uncertainty, even though they may be advancing in their jobs and receiving pay raises on a regular basis. This is high-risk living caused by weak financial education.
• As an employee who is also a homeowner, your working efforts are generally as follows: 1. You work for someone else. Most people, working for a paycheck, are making the owner, or the shareholders richer. Your efforts and success will help provide for the owner’s success and retirement. 2. You work for the government. The government takes its share from your paycheck before you even see it. By working harder, you simply increase the amount of taxes taken by the government — most people work from January to May just for the government. 3. You work for the bank. After taxes, your next largest expense is usually your mortgage and credit card debt.
• An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. The poor and the middle class often buy luxury items such as big houses, diamonds, furs, jewelry or boats because they want to look rich. They look rich, but in reality, they just get deeper in debt on credit. The old-money people, the long-term rich, built their asset column first. Then, the income generated from the asset column bought their luxuries. The poor and middle class buy luxuries with their own sweat, blood, and children’s inheritance.
• When we had extra money coming from our apartment houses, my wife went out and bought her Mercedes. It did not take any extra work or risk on her part because the apartment house bought the car. But the luxury, the Mercedes, was a true reward because she had proved she knew how to grow her asset column. That car now means a lot more to her than simply another pretty car. It means she used her financial intelligence to afford it. What most people do is they impulsively go out and buy a new car, or some other luxury, on credit. They may feel bored and just want a new toy. Buying a luxury on credit often causes a person to sooner or later actually resent that luxury because the debt on the luxury becomes a financial burden. After you’ve taken the time and invested in and built your own business, you are now ready to add the magic touch-the the biggest secret of the rich. The secret that puts the rich way ahead of the pack.
• Mind your own business. Ray Kroc, the founder of McDonald’s main business was business is real estate under the hamburger business. He knew that the real estate and its location was the most significant factor in the success of each franchise. Today, McDonald’s owns some of the most valuable intersections and street corners in America, as well as in other parts of the world.
• Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities, or personal effects that have no real value once you get them home. A new car loses nearly 25 percent of the price you pay for it the moment you drive it off the lot.
• As a young boy, my educated dad encouraged me to find a safe job. My rich dad, on the other hand, encouraged me to begin acquiring assets that I loved. “If you don’t love it, you won’t take care of it.” I collect real estate simply because I love buildings and land. I love shopping for them. I could look at them all day long.
• Learn accounting (financial literacy) which is the ability to read and understand financial statements. Learn to invest which is the science of money making money. Understanding markets, the science of supply and demand, and finally the law of tax.
• I know of no other skills to be more important than selling as well as marketing. 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.
• I have never met a rich person who has never lost money. The fear of losing money is real. Everyone has it. Even the rich. But it’s not fear that is the problem. It’s how you handle fear. It’s how you handle losing. It’s how you handle failure that makes the difference in one’s life. Some people are terrified of snakes. Some people are terrified about losing money. Both are phobias.
• People are so afraid of losing that they lose! “Winning means being unafraid to lose.” In my own life, I’ve noticed that winning usually follows losing. Before I finally learned to ride a bike, I first fell down many times. I’ve never met a golfer who has never lost a golf ball. I’ve never met people who have fallen in love who have never had their heartbroken. And I’ve never met someone rich who has never lost money.
• So for most people, the reason they don’t win financially is that the pain of losing money is far greater than the joy of being rich. Quoting John D. Rockefeller, “I always tried to turn every disaster ‘ into an opportunity.”
• If you have little money and you want to be rich, you must first be “focused,” not “balanced.” If you look at anyone successful, at the start they were not balanced. Balanced people go nowhere. Thomas Edison was not balanced. He was focused. Bill Gates was not balanced. He was focused. Donald Trump is focused. George Soros is focused. George Patton did not take his tanks wide. He focused them and blew through the weak spots in the German line If you have any desire of being rich, you must focus. 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.
• Most people are poor because when it comes to investing, the world is filled with Chicken Littles running around yelling, “The sky is falling. The sky is falling.” And Chicken Littles are effective because every one of us is a little chicken. It often takes great courage to not let rumors and talk of doom and gloom affect your doubts and fears. The real world is simply waiting for you to get rich. Only a person’s doubts keep them poor. As I said, getting out of the rat race is technically easy.
• Just do what Colonel Sanders did.” At the age of 66, he lost his business and began to live on his Social Security check. It wasn’t enough. He went around, the country selling his recipe for fried chicken. He was turned down 1,009 times before someone said “yes.” And he went on to become a multimillionaire at an age when most people are quitting.
• We encouraged us to learn a profession that works for money but failed to teach us how to have money work for us. It taught us not to worry about our financial future; our company or the government would take care of us when our working days are over.
• Financially, with every dollar we get in our hands, we hold the power to choose our future to be rich, poor, or middle class. Our spending habits reflect who we are. first, invest in learning about investing- A friend of mine, who is a rich woman, recently had her apartment burglarized. The thieves took her TV and VCR and left all the books she reads. And we all have that choice. Again, 90 percent of the population buys TV sets and only about 10 percent buy books on business or tapes on investments.
• A broker is your eyes and ears to the market. They’re there every day so I do not have to be. I’d rather play golf. Why would I want to save a few bucks when I could use that time to make more money or spend it with those I love? “Never ask an encyclopedia salesperson if you need an encyclopedia! Find a broker who has your best interests at heart. Many brokers will .’; spend the time educating you, and they could be the best asset you find. Just be fair, and most of them will be fair to you. If all you can think about is cutting their commissions, then why should they want to be around you? It’s just simple logic.
• We go to school to learn a profession so we can work for money. It is my opinion that it is also important to learn how to have money work for you. Too often today, we focus on borrowing money to get the things we want instead of focusing on creating money. One is easier in the short term, but harder in the long term. Money is a powerful force. Unfortunately, people use the power of money against them. Instead of being a slave to money, you will be the master of it.
• For in the market, it is usually the crowd that shows up late and is slaughtered. If a great deal is on the front page, it’s too late in most instances. Look for a new deal. Wise investors buy an investment when it’s not popular. They know their profits are made when they buy, not when they sell. They wait patiently.
• Whenever I feel that people aren’t smiling at me, I simply begin smiling and saying hello, and like magic, there are suddenly more smiling people around me. It is true that your world is only a mirror of you. So that’s why I say, “Teach and you shall receive.” I have found that the more I sincerely teach those who want to learn, the more I learn. If you want to learn about money, teach it to someone else.
• You must go to the market and talk to a lot of people, make a lot of offers, counteroffers, negotiate, reject and accept.
• Why consumers will always be poor. When the supermarket has a sale on, say, toilet paper, the consumer runs in and stocks up. When the stock market has a sale, most often called a crash or correction, the consumer runs away from it. When the supermarket raises its prices, the consumer shops elsewhere. When the stock market raises its prices, the consumer starts buying.

You can download the free PDF from here: http://www.lequydonhanoi.edu.vn/upload_images/S%C3%A1ch%20ngo%E1%BA%A1i%20ng%E1%BB%AF/Rich%20Dad%20Poor%20Dad.pdf

Thanks for reading :)