Rich Dad Poor Dad chapter 1 PDF

Rich Dad, Poor Dad is one of the best-selling financial books in history, selling over 35 million copies. The premise: when growing up, author Robert Kiyosaki had two dads advising him: 1) a Stanford-educated PhD who followed traditional career thinking and was financially illiterate (the Poor Dad, his biological father); 2) a high school dropout who built a business empire employing thousands (the Rich Dad, his best friend’s father).

The two dads are a parable for two different approaches to wealth: Poor Dad recommends getting a secure job with good benefits and retiring with a pension. Rich Dad recommends amassing assets that make money for you, becoming financially literate, and practicing independent thinking.

In this book, learn how to achieve financial independence, why it’s a terrible idea to see your home as your biggest investment, and how to overcome the biggest mental blocks to becoming wealthy.

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• Example: buying a house as your primary investment. This viewpoint is problematic because it gets people to buy more house than they really need. A more costly house vacuums up money with high monthly expenses - money that could have been put more profitably elsewhere.

Real assets are businesses that don’t require your active management; stocks, bonds, and other securities; income-generating real estate; and intellectual property generating royalties.

Think about each dollar as your employee that works 24 hours a day tirelessly to make you more money.

The tradeoff between today’s expenses and future income should be clear. Every dollar you spend today is a dollar that does not work for you again, in perpetuity.

Lesson 3: Reduce Taxes through Corporations

Kiyosaki advises that people set up corporations to deduct expenses without paying taxes. (Shortform note: This is a controversial suggestion because it can easily go wrong if you don’t follow tax guidelines.)

The major thing worth noting here is that corporations let you deduct legitimate business expenses pre-tax, instead of paying from post-tax dollars.

Lesson 4: Overcome Your Mental Obstacles

Even if you have Rich Dad goals, you still need to execute your plan. Several common mental obstacles get in the way. We’ll address each one:

Self-doubt

• In the real world, more than just intelligence and grades is required. Guts, chutzpah, balls, daring, tenacity, grit are different names for the factor that plays a huge role in success.
• When you recognize a great opportunity, you must have the courage to chase it.

Fear

• Fear of losing makes you play it safe and avoid opportunities that can have huge upsides and relatively low downsides.
• Remember that failure will only make you stronger and smarter. Use your failure to inspire yourself to become a winner. Use this thinking to lower the perceived cost of failing.
• Fear of ostracism prevents people from having nonconsensus opinions. As it relates to finance, it’s in 1) not bucking the consensus traditional way of handling your career and money, 2) keeping up with the Joneses and matching their irresponsible spending. Focus on yourself and your personal goals, regardless of what other people think.

Laziness

• Counterintuitively, busy people are often the most lazy. They stay busy as a way of avoiding something they don’t want to face.
• Consider someone who’s moving all the time and brushes off investment opportunities as, “I’m working hard enough as it is, and my boss wants me to do more work. I don’t have the time.”

Guilt for Feeling Greedy

• Condemning greed might be a trained defense, learned helplessness. “I don’t know how to become rich. So I’m just going to try to believe being rich is bad, and there’s valor in not wanting to be rich. Even though secretly I would love to be rich.” It’s easy to imagine parents feeling this, then teaching it to their kids.
• Instead, embrace your greed. Money is empowering, and you have the right to design the future life that will make you happiest.

Arrogance

• When you’re ignorant in a subject, recognize this, then educate yourself.
• Intelligent people welcome new ideas, since new ideas add synergy with other ideas.
• Don’t feel a trade is underneath you. Some people have an allergy to learning sales techniques, without realizing that much of the world runs on sales of some sort.

Lesson 5: Develop Financial Intelligence. Keep Learning

Financial intelligence consists of knowledge in accounting, investing, markets, and law.

Financial intelligence allows you to construct creative ways to solve financial problems, vet the ones that are more likely to work, then have the technical ability to execute them.

Knowledge compounds in a scary way. Making yourself 1% better each day will pay off huge returns compared to someone who stays static. And the faster you can iterate your knowledge, the faster the returns compound.

How many pages are in Rich Dad Poor Dad?

How many chapters are in Rich Dad Poor Dad?

What were the first lessons rich dad taught 9 year old Robert in his office?

What is the summary of Rich Dad Poor Dad?