Chapter 1

The rich don’t work for money..

Poor and middle class they work for money whereas the rich make money for them.
The poor and the middle class take up jobs and they are dependent on their income only.
Whereas the rich always look for secondary source of income eg investing in gold, real
estate, stock markets.

Chap 2
Why teach financial literacy

It is not imp how much money you make it is how much you keep.
Understand the diff between assets and liabilities.
The poor and the middle class always save up and buy liabilities through their income whras
the rich people invest in assets which provides them with secondary source of income.

Liabilities are the main reason why people get into debt.
In order t have a clean room you need better cleaning habbits and your room will never be
dirty in the same way you need better financial habbits and you will never have a money
problem.

Chap 3
Mind your own business

Financial struggle is often the result of people working all their life for someone else.

While excelling in your qualifications and keeping your day time job one must also look for
other opportuinities elsewhere to accumulate wealth.

One must not depend only on a salried job or else they will continue to work for their boss
the govern of bank (if they have taken a loan) with little or nothing left to invest in their
selves.

Chap4
The history of taxes and power of corporation

Taxes are an extremely imp factor to your overall wealth simply for the fact that they are
generally a persons greatest expense if we calculate overall on an average most people
work 3-4 months out of the year just to pay taxes to the government.

Corporation according to the author

A corporation is merely a legal document which creates a legal body without a soul. There is
a misconception that corporations are only for big businesses with buildings, hundreds of
employees, large operations, etc... However, anyone can create a corporation. It is relatively
simple and would only require a little study on how to set one up
The rich invent money

Make good use of time.

Identify an opportunity everyone else missed

1)Accounting - Ability to read and understand financial statements; allows you to identify
strengths and weaknesses in a business

2)Investing - Kiyosaki refers to this as the "science of money making money". This includes
real estate, stocks, bonds, etc...

3)Understanding Markets - There are two types of analysis that you need to understand: 1)
Fundamental analysis - economic sense of the investment based on current market
conditions.
Technical analysis – ability to understand price movements and indicators

4)The Law - Simply, a person with knowledge of corporations, accounting, investing, tax
advantages, etc... will be able to get rich much faster than someone without that knowledge

Overcoming obstacles

Chapter 5
When it comes to making more money, most people have tendencies to simply work
harder instead of exploring their options. The other theory people subscribe to is to put
a little money away every month into some type of savings account and let the interest
compounding work for them overtime. The problem with this theory is that it works
extremely slow. Developing financial intelligence is simply about having more options.
Having knowledge of accounting, investing, the markets, and the law will allow you to
receive greater returns on your money and build up your assets much faster than the
average person.

Chap6
Work to learn don’t work for money

http://lessonsoftherichdad.blogspot.com/2008/02/work-to-learn-dont-work-for-
money.html