Rich Dad Poor Dad

Goodreads

https://www.goodreads.com/book/show/69571.Rich_Dad_Poor_Dad

Notes:

1. Financial Education is very important. We all leave school and college with 0 financial skills. We learn how to make money, but we dont learn how to make more money with the help of money and how to efficiently spend that money.
2. The rich prioritize investments over wants. The poor prioritize wants over investments.
3. Accept you are the reason you are financially not in a osund position. Do not blame anyone else. Once you realize you are the problem, the way you perceive the environment will change. To change yourself:
   1. Read everyday
   2. Get into action
   3. Quit a bad habit
   4. Level up your skills
   5. Overcome fears
   6. Get out of your comefort zone
   7. Stay focused with to do lists
   8. Write a letter to your future self
   9. Learn from people who inspire you
4. Use accounting to keep track of your money.
   • Assets: These are things you can buy or have that put money in your pocket.
   • Liabilities: These are things you can buy or have that take money out of your pocket.
5. The poor are taxed befor expenses. The rich have corporates that are taxed after expenses.
6. The four pillars of becoming rich:
   1. Accounting - The ability to read and understand financial statements.
   2. Investment - The science of money making money; creativity combined with strategy and formulas.
   3. Understanding markets - The science of supply and demand; technical (emotion-driven) and fundamental(economic sense) investments.
   4. Law understanding taxes and avoiding lawsuits.
7. You work for your boss first, then you work for the government through taxes, then you work for the bank that owns your mortgage. You never work for yourself. Always try and increase your asset column. Once a dollar is in your asset column never take it out.
8. Invest in appreciating assets like:
   1. Dividend stocks
   2. Rental properties
   3. Index funds
   4. REITs
   5. Bonds
   6. Gold
9. When you want to buy a liability, first buy an asset that generates enough money to cover it.
10. Your mind is the most important asset. Always keep developing it. Train your mind on how to:
    1. Find opportunities
    2. Leverage money
    3. Organize intelligent people
11. Become a generalist rather than a specialist. Specialization is for people who work for salary. Work in jobs that improve your communication, sales and marketing skills. These skills are necessary for making wealth.

Ideas:

• Information is wealth in today’s age. Take calculated risks in an informed manner.