ROBERT T. KIYOSAKI with SHARON L.

LECHTER

There is a need.
Does school prepare children for the real world? Study hard, get good grades and you will find a high paying job with great benefits

Sharon and husband Michael have good paying jobs and great benefits but their savings are not substantial
One day her kid comes and asks her Why should I study that which Ill never use in real life? She gives the same advice If you dont get good marks

Son lectures Mom.

Are the richest the most educated people? --Maddona --Michael Jordan --Bill Gates was a drop out of HARVARD founded MICROSOFT.

Now She realised that the world around has changed but the advise is still the same.
She had to look for new ways to guide her childrens education

Sharon Lechter meets Robert Kiyosaki

He explains what is called the RAT RACE

An average man-child goes to school-gets good grades-goes to college-starts working-makes his own money

The happy couple born 35 years ago is now trapped in the rat race. They work for the owners of the company, for the government paying taxes and for the bank paying off a mortgage and credit cards

Then they advise their own children to study hard, get good grades and find a safe job or career. The process repeats into another hardworking generation. This is the rat race.

RICH DAD
Never finished eighth grade

POOR DAD
Highly educated Intelligent Went to Stanford, Chicago and North western university on full financial scholarship.

The love of money is the root of all evil The lack of money is the root of all evil

Stay in school, study hard

Money is not taught in schools

I cant afford it

How can I afford it

Rich should pay more in taxes to take care of those who are less fortunate
Taxes punish those who produce and reward those who dont produce

Study hard so that you can find a good company to work for

Study hard so that you can find a good company to buy

The reason I am not rich is because I have you kids The reason I must be rich because I have you kids

When it comes to money, play it safe, dont take risks Learn to manage risk

I am not interested in money. Money doesnt matter Money is power

Get a good job and work for money

I dont work for money, money works for me

It was difficult for Robert to decide whom to follow, The rich was not yet rich, the poor was not yet poor. Finally at the age of 9 he made the decision.

The Rich Dont Work For Money

Dad, can you tell me how to get rich

The Lessons Begin..

Ill pay you 10 cents an hour

Waiting In Line On Saturday

Ill teach to you how life teaches, Life pushes you around and you get pushed

Why teach financial literacy?

SOME OF THE RICHEST PEOPLE DIED BROKE!!!!!! WHY?

Rule no.1 :KNOW THE DIFFERENCE BETWEEN AN ASSET AND LIABILITY INCOME EXPENSE INCOME

EXPENSE

ASSET

LIABILITY

ASSET

LIABILITY

POOR DAD
ASSET LIABILITY

RICH DAD
ASSET LIABILITY

HOME

HOME

CASH FLOW
MIDDLE CLASS
INCOME EXPENSE

RICH CLASS
INCOME EXPENSE

ASSET

LIABILITY

ASSET

LIABILITY

WHY THE RICH GET RICHER?

INCOME
ASSET LIABILITY

EXPENSE

INCOME 1
EXPENSE 2

1. YOU WORK FOR OWNER

2. YOU WORK FOR GOVERNMENT 3. YOU WORK FOR THE BANK

ASSET

LIABILITY 3

MIND YOUR OWN BUSINESS

It is very important to know that what business are we all in.

McDonalds

What is His business

I am in the business of Real Estate

Income

Work for Owner

Expenses Work for government Asset
Your Business

Liability
Work for Bank

For adults keep your expenses low, reduce your liabilities and diligently build a base of solid assets.

The rich people focus on their assets whereas the poor or the average focus on their income statements.

IMPORTANT DISTINCTION BETWEEN THE RICH AND THE POOR

Business not requiring my presence

Stocks

Bonds Mutual Funds

Income generating Real Estates
Anything else that has value, produces income or appreciates and has market value

THE HISTORY OF TAXES AND THE POWER OF CORPORATIONS

Poor Dad :-- Robin Hood is a Hero

Rich Dad :-- Robin Hood is a Crook

Lets look at the historical perspective of taxes

Poor and Middle class pay taxes Rich save them

Why ?????????

Poor Dad:-- Work your way up the corporate ladder

Rich Dad:-- Why not own the ladder

How did Robert Kiyosaki Quit the Rat Race ??????

What is financial IQ made up of ?

Financial IQ should be built up from the four broad areas of expertise:
Accounting Investing Understanding the Markets Know the Law to break the Law

The Rich with Corporations

1. Earn 2. Spend 3. Pay Taxes

People who work for corporations 1. Earn 2. Pay Taxes 3. Spend

THE RICH INVENT MONEY

Talent is not enough, knowledge is required

Often in the real world it is not the smart that get ahead but the BOLD

Why develop financial intelligence ????????

You Own A System & People Work For You

You Have A Job

Money Works for You

You Own A Job

Henry Ford once said, Thinking is the hardest work there is. That is why so few people engage in it.
Its not so much how much you make, but how much you keep, how hard it works for you, and how many generations you keep it for.

Your profit is made when you buynot when you sell. When the stock markets crash people sell When the economy does well and estate prices grow people buy..
Why ?????

The more people you are indebted to, the poorer you are. The more people you have indebted to you, the wealthier you are. That is the game. You bosss job is to give you a job. Its your job to make yourself rich.

WORK TO LEARN- DONT WORK FOR MONEY

Robert Kiyosakis interview

Poor Dad:-- Specialise

Rich Dad:-- Know a little about a lot

Movie : Jerry Maguire

History and formation of trade unions

Main management skills needed for success 1) The management of Cash flows
2) The management of Systems

3) The management of people

OVERCOMING OBSTACLES
Five reasons why financially literate people do not develop abundant asset column

Fear

Cynicism

Laziness

Bad Habits

Arrogance

GETTING STARTED
Ten Steps to develop your powers
I need a reason greater than reality I choose daily Choose friends carefully Master a formula and then learn a new one

Pay yourself first

Pay your brokers well

Be an Indian giver
Contd.

 Pay your brokers well Be an Indian giver Asset buy luxuries

The need for heroes

Teach and you shall receive

STILL WANT MORE? HERE ARE SOME TO DOS

To dos to get started Stop doing what you are doing Look for ideas Take classes and buy tapes Why consumers will always be poor Learn from history Action beats inaction

Find someone who has done what you want to do

Three Incomes
1. Earned Income

2. Passive Income

3. Portfolio Income

Thank You