Rich Dad Poor Dad Book Review Presentation

Book review presentation on book - Rich Dad Poor Dad by Robert Kiyosaki

1. RICH DAD, POOR DAD
What The Rich Teach Their Kids About Money –
That The Poor And Middle Class Do Not !
BOOK REVIEW
ROBERT T. KIYOSAKI

2. RICH DAD, POOR DAD
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3. ABOUT THE AUTHOR
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Robert T. Kiyosaki
Born: April 8, 1947
Educator, Entrepreneur and Investor.
 Has built a financial edu empire that extends to
board games, courses and coaching.
 Author of Rich Dad Poor Dad and over two dozen
other books.
 Regular guest on media outlets like Fox News and
offers business and economic commentary.

4. Chapter One :Rich Dad, Poor Dad
Chapter Two :The Rich Don't Work for Money
Chapter Three :Why Teach Financial Literacy ?
Chapter Four :Mind Your Own Business
Chapter Five :The History of Taxes and the Power of Corporations
Chapter Six :The Rich Invent Money
Chapter Seven :Work to Learn - Don't Work for Money
CHAPTERS
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5. CHAPTER 1 : RICH DAD, POOR DAD
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6.  Rich Dad Poor Dad is a Book about Robert T. Kiyosaki and his two Dads, Rich
Dad and Poor Dad & how he reaches his financial independence.
 The Rich Dad was the father of his best friend Mike and the Poor Dad was his
biological dad.
 Poor dad went to Stanford and earned Ph.D on full scholarship. The Other
father never finished eight grade.
 The Book is about the different frame of references & thought process of their
dad about money and investing.
RICH DAD, POOR DAD
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7. RICH DAD, POOR DAD
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8. CHAPTER 2 : THE RICH DON'T WORK FOR MONEY
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9.  The poor and middle class work for money, the rich have money work for them.
 Life pushes all of us around, some people give up and others fight and some people
learn the lesson and move on. They welcome life pushing them around.
 Poor/ Middle class people work very hard for a little money clinging to the illusion of
job security, three weeks vacation and a skimpy pension.
 People's lives are forever controlled by two emotions fear and greed
 Fear : Being without money makes them work hard and earn pay check.
 Greed : Thinking of things what they can buy.
 The Rat Race.
 Getting a job is really just a short-term solution to the long-term challenge, of building
your net worth.
THE RICH DON’T WORK FOR MONEY
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10. CHAPTER 3: WHY TEACH FINANCIAL LITERACY ?
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11. It's not how much money you make. It's how much money you keep.
The edu sys primary objective is to train you on how to become a good
employee but it does a poor job of making you a good employer.
Asset : First Pillar of Financial Literacy.
Rich people acquire assets. The poor and middle class acquire liabilities
that they think are assets.
Asset puts money in my pocket, a liability takes money out of my pocket.
Cash flow tells the story of how a person handles money.
WHY TEACH FINANCIAL LITERACY ?
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12. WHY TEACH FINANCIAL LITERACY ?
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13. WHY TEACH FINANCIAL LITERACY ?
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14. WHY TEACH FINANCIAL LITERACY ?
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15. CHAPTER 4 : MIND YOUR OWN BUSINESS
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16. Profession vs Business : McDonald's franchise Story.
Author’s Profession : Mil Pilot, Salesman in Xerox Coy, Full time Businessman.
To become financially secure, a person needs to mind their own business.
 The rich focus on their asset coln while everyone else focuses in their income
statement. Eg.
Business that don’t require your presence
Mutual Funds/Stocks
Bonds
Rental income, royalties etc.
 Each dollar in his asset coln was a great employee making more employees to buy
the boss i.e the author a new Porsche.
MIND YOUR OWN BUSINESS
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17.  Rich people buy luxuries last, while the poor and middle class tend to buy luxuries
first.
Keep your day job but build up assets and business at the same time.
 Wealth is the measure of the cash flow from the asset coln compared with the
expense coln. Out of rat race !!!!
MIND YOUR OWN BUSINESS
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18. CHAPTER 5 : THE HISTORY OF TAXES & THE
POWER OF CORPORATIONS
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19.  Every time people try to punish the rich, the rich don’t simply comply.  They
react. They have the money, power and intent to change things. They don’t 
just sit there and voluntarily pay more taxes.
 Permanent Income Taxes were imposed in 1874 in England and 1913 in US.
 Taxes were invented to penalize the rich. But taxes ended up hurting the
middle class more.
 As the government grows, more and more  taxes are needed to support it.
 The rich use “Corporations” to save on their tax liability : The Biggest
Secret of Rich.

THE HISTORY OF TAXES & THE POWER OF
CORPORATIONS
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20.  Corporation is a piece of paper that creates a legal body having taxes lower
than personal income rates.
 Difference in flow of income :

THE HISTORY OF TAXES & THE POWER OF
CORPORATIONS
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21. CHAPTER 6 : THE RICH INVENT MONEY
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22. The mind and our financial operating sys.
 The single most powerful asset we have is our mind. If it is trained well,  it can
create enormous wealth.
To build asset base, you need financial int
 Financial Literacy : Ability to read and understand financial statements.
 Investment Strat : Science of money MAKING money.
 Understanding Market : Tech aspect of science of supply and demand.
 Understanding Law : To make adv from various provisions in the law for
growth of the org.
THE RICH INVENT MONEY
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23. CHAPTER 7 : WORK TO LEARN - DON'T WORK
FOR MONEY
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24. Job is an acronym for “Just Over Broke.”
 Long View : Are people looking to where they are headed or just until their
next paycheck ?
 Workers work hard enough to not be fired and owners pay just enough so
that workers won’t quit.
 Every time you get paid, you are essentially feeling a similar satisfaction of
that of a drug fix.
 Job security meant everything to my educated dad. Learning meant
everything to my rich dad.
WORK TO LEARN - DON'T WORK FOR MONEY
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25. Five obstacle one need to overcome :
 Fear : The fear of losing money more than making it.
 Cynicism : They are cynical and do not believe that it is even to become
wealthy.
 Laziness : They are too lazy to change their habits.
 Bad Habits : Their behaviour towards money is dictated by their habits.
 Arrogance : They are arrogant, ignorant and ego driven.
Talent vs Financial Int : The world is full of talented poor people.
The main skills you should focus on learning are :
 Mgt of Cash Flow : How to dply capital.
 Mgt of Sys : How to plan and allocate your time effectively.
 Mgt of People : Learn how to hire and motivate a team.
WORK TO LEARN - DON'T WORK FOR MONEY
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26. Broaden your vision
Redefine your views about money
What the rich teach their kids about money that poor and middle class do not
 Smash all the perception about what we have been taught by our parents and also
what we are teaching our kids.
Teach how money works ?
 It’s not how much money you make that matters. It’s how much money you keep
and if that saved money is working for you or not.
WHY YOU SHOULD READ THIS BOOK ?
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27. Poor work for money and Rich make money work for them.
Happy Wealth Creation

28. RECOMMENDATIONS
The Psychology of Money by Morgan Housel.
The Joys of Compounding by Gautam Baid.
The Autobiography of a Stock by Manoj Arora.
Richest man in Bablyon by Samuel Clason.
The Intelligent Investor by Benjamin Graham.
One Up the Wall Street by Peter Lynch.