minutes of rich dad and poor dad

Minutes of the Book - 'Rich Dad Poor Dad' - Author: Robert Kiyosaki & Sharon Lechter

Brief: It is a book on a person who believes that he has practically two fathers i.e. one - his real father who was highly educated and an excellent teacher but not a very financially rich person and other - his friend's father who was a very rich man and taught him financial intelligence and how to make money.

Chapter-1: Subject of Money is not taught in schools. Schools focus on Scholastic and professional skills but not on financial skills. Focus on 'How can I afford it' which puts your brain at work, rather than I can't afford it' which stops your brain. Exercise your mind to make money. Like - Proper physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth. Laziness decreases both health and wealth. Understand that - 'We should NOT work for Money' but 'Money should work for us' 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.

Chapter-2: If you can't make up your mind decisively, then you'll never learn to make money anyway. Opportunities come and go. Being able to know when to make quick decisions is an important skill. Life is the best teacher of all. Most of the time, life does not talk to you. It just sort of pushes you around. Each push is life saying, 'Wake up. There's something I want you to learn.' " Learn when life pushes you around fight back and move on. Take risks otherwise we become boring persons. It's easier to change yourself than everyone else. "The poor and the middle class work for money." "The rich have money work for them." 'Fear' - of losing money and 'Greed or Desire' - of things or joy money can buy - are the two factors that puts you in trap. Keep learning always, everyday to be successful. Most people stop it once they finish their academic education. But the most successful people never stop learning and upgrading.

Chapter-3: Today we live in times of greater and faster change. The concern is that too many people are focused too much on money and not their greatest wealth, which is their education. If people are prepared to be flexible, keep an open mind and learn, they will grow richer and richer through the changes. Intelligence solves problems and produces money. Money without financial intelligence is money soon gone. It's not how much money you make, it's how much money you keep which is important in life. 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 No. 1. It is the only rule. If you want to be rich, you've got to read and understand numbers. An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket. 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. It is said that the fear of public speaking is a fear greater than death for most people. According to psychiatrists, the fear of public speaking is caused by the fear of ostracism, the fear of standing out, the fear of criticism, the fear of ridicule, the fear of being an outcast. The fear of being different prevents most people from seeking new ways to solve their problems. An intelligent person hires people who are more intelligent than they are. Just remember this simple observation: The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets.

Chapter-4: To become financially secure, a person needs to mind their own business. Your business revolves around your asset column, as opposed to your income column. Start minding your own business. Keep your daytime job, but start buying real assets, not liabilities or personal assets that have no real value once you get them home. In my world, real assets fall into several different categories: 1. Businesses 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 becomes my job. 2. Stocks. 3. Bonds. 4. Mutual funds. 5. Income-generating real estate. 6. Notes (lOUs). 7. Royalties from intellectual property such as music, scripts, patents. 8. And anything else that has value, produces income or appreciates and has a ready market. 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.