My Rich Dad Poor Dad book notes. Enjoy!!
Rich Dad Poor Dad Notes:
- Instead of "I can't afford this" ask "how can I afford this?".
- Proper physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth.
- Broke is temporary. Poor is eternal.
- The poor and middle class work for money. The rich have money work for them.
- It's easier to change yourself then everyone else.
- People's lives are forever controlled by two emotions: fear and greed.
- "The avoidance of money is just as psychotic as being attached to money."
- So many people say, "Oh, I'm not interested in money." Yet they'll work at a job for eight hours a day.
- If you don't first handle fear and desire and your get rich, you'll only be a highly paid slave."
- "What intensifies fear and desire is ignorance."
- History Proves that great civilizations collapse when the gap between the haves and have-nots is too great.
- "Confronting fear, weaknesses, and neediness by choosing our own thoughts is the way out."
- I am concerned that too many people are too focused on money and not on their greatest wealth, their education. If people are prepared to be flexible, keep and open mind and learn, they will grow richer and richer despite tough changes.
- Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.
- Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
- An asset puts money in my pocket. A liability takes money out of my pocket.
- If you want to be rich you have got to read and understand numbers.
- Illiteracy both in words and numbers, is the foundation of financial struggle.
- "An intelligent person hires people who are more intelligent than he is."
- High emotions tend to lower financial intelligence.
- In summary, the end result in making a decision to own a house that is too expensive in lieu of starting an investment portfolio impacts an individual in three ways:
- Loss of time during which other assets could have grown in value.
- Loss of additional capital, which could have been invested instead of paying for high maintenance expenses related directly to the home.
- Loss of education by not being able to afford actual investments.
- Wealth is a person's ability to survive so many number of days forward- or if I stopped working today, how long could I survive.
- Our business revolves around your assets column, not your income column.
- A new car loses nearly 25% of the price you pay for it the moment you drive is off the lot.
- Keep expenses low, reduce liabilities, and diligently build a base of solid assets.
- A true luxury is a reward for investing in and developing a real asset.
- Most people impulsively fo 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 eventually resent that luxury because the debt becomes a financial burden.
- 16th amendment in 1913 income tax became permeant.
- A corporation is merely a legal document that creates a legal body without a soul.
- 1031 Exchange defers tax payments on a piece of Real Estate.
- Financial IQ is made up of knowledge from four broad areas of expertise:
- Accounting
- Investing
- Understanding markets
- The Law
- A corporation earns, spends everything it can, and it taxed on anything that is left.
- The single most POWERFUL asset we all have is our mind.
- Job "Just, Over, Broke"
- The main management skills needed for success are:
- Management of cash flow
- Management of systems
- Management of people
- No other skill is more important than selling and marketing.
- In all my years, I have never met a rich person who has never lost money, But I have met a lot of poor people who have never lost a dime-investing, that is.
- The most common form of laziness: laziness by staying busy.
- Our lives are a reflection of our habits more than our education.
- Choice is the main reason people want to live in a free country. We want the power to choose.
- Invest first in education.
- "You become what you study"
- Pay yourself first.
- What I find funny is that so many poor and middle-class people insist on tipping restaurant help 15-20%, even for bad service, but complain about paying a broker 3-7%. They enjoy tipping people in the expense column and stiffing people in the asset column. That is not financially intelligent.
- Whenever you feel short or in need of something, give what you want first and it will come back in buckets. That is true for money, a smile, love, or friendship.
- It is true that your world is only a mirror of you.
- Profits are made in the buying, not in the selling.
- Look for people who want to buy first. Then look for someone who wants to sell.
- As Warren Buffet, America's richest investor says, "Risk comes from not knowing what your doing"
- Every day with every dollar, you decide to be rich, poor, or middle class.