40334248 rich dad poor dad presentation

8/8/2019 40334248 Rich Dad Poor Dad Presentation

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Rich Dad, Poor Dad

³Study hard, get good grades and find a high

paying job with good benefits´ is advice

from a previous era.

³Network Marketing is the Perfect

Business«

The richest people in the world look for

and build networks everyone else looks

for work´

Robert Kiyosaki,Author Rich Dad Poor



Introduction

Robert Kiyosaki, is a multi billionaire by all standards

The book basically is about what people must learn and practice in order

to become financially independent. The book talks about two different points of view about attaining financial independence (Rich dad Vs. Poor dad)

His poor dad (his biological father), was a PhD holder who worked for Government, but never really attained financial independence, while hisrich dad (his friend¶s father) did not graduate from high school, but later

became a very rich man Parents¶ advice of getting good grades and jobs will not necessarily lead

to financial independence, because schools do not equip kids with theinformation needed to ensure financial independence



Lesson 1 ± The rich don¶t work for

money

Don¶t work for money i.e. don¶t depend on your boss to make you rich

Learn how to make money work for you bycutting your expenses moderately, investingwisely and creating opportunities to earn passiveincomes outside of salaries

Seek to be a business owner and/or an investor,rather than an employee



Lesson 1 ± The rich don¶t work for

money

Avoiding the trap

± fear and greed

± The rat race - work to spend and spend to have

± a job is a short term solution to a long term

problem

± The poor and middle class believe that moneyis real and that the company or government will

look after them.



Lesson 1 ± The rich don¶t work for money

Job Security

Financial Security

Financial Freedom

Ultimate FinancialFreedom

Wealth

Side

Rat

Race

Side



S ample Paths To Financial Freedom

Wealth

Side

Rat

Race

Side

Start

Endor Start




Wealth

Side

Rat

Race

Side

Start

End



Lesson 2 ± Master Financial Literacy

Financial intelligence equips you with the what isrequired to make money that will last for generations,while money without financial intelligence is soon gone

Financial literacy teaches that it does not matter howmuch money you make, but how much money you keep

It also teaches that Investments can be made at eachincome level and if you invest today you will guaranteeyour financial future

Differentiate between an asset and liability, and investin assetsAssets generate income, while liabilities generate

expenses; i.e. your GSM mobile phone could be anasset or liability depending on what it is used for



Financial Intelligence Rich Dad. Poor Dad¶s Basic Philosophy

Know the difference between an ASSET and a

LIABILITY, and only buy assets. ± A True Asset gives a positive cash flow each and

every month.

Live below your means, while constantly

increasing your means. Make your PASSIVE INCOME cover your

Lifestyle Expenses forever.



Financial Literacy

Sadly, most of us have been taught to read

words and books, but not numbers andfinancial statements.

Two key personal and business financialstatements we all must be able to read.

± The Income Statement shows the amount of money coming in and going out.

± The Balance Sheet shows the balance of whatyou own and what you owe.



IncomeStatement

Balance

Sheet

Income

Expenses (Payments)

Assets (Own) Liabilities (Debts)

Financial Literacy (continued)



IncomeStatement

Balance

Sheet

Income

Expenses (Payments)


Paycheck, dividends, interest,

rents, royalties, profits, advances




IncomeStatement

Balance

Sheet

Income

Expenses (Payments)


Taxes, mortgage/rent, cards, car, food,

fun, rent, clothes, child care, insurance,

medical






IncomeStatement

Balance

Sheet

Income

Expenses (Payments)




medical



Mortgage, car loan,credit cards,school loans




IncomeStatement

Balance

Sheet

Income

Expenses (Payments)

Assets (Own) Liabilities (Debt)



medical



Mortgage, car loan,credit cards,school loans

Stocks, bonds, notes,

real estate, business,

intellectual property




Income

Statement

BalanceSheet

Income

Expenses

Assets = Zero Liabilities = Zero

H ow The Poor LiveThey only have small incomes and small expenses



Income

Statement

Balance

Sheet

Income

Expenses

Assets = Zero Liabilities = Zero

H ow The Poor LiveThey only have small incomes and small expenses

$The

Wealthy



Income

Statement

Balance

Sheet

Income

Expenses

Assets

Liabilities

H ow The Middle Class LiveThey buy expenses and liabilities they think are assets

Assets



Income

Statement

Balance

Sheet

Income

Expenses

Assets

Liabilities

H ow The Middle Class LiveThey buy expenses and liabilities they think are assets

Assets

$The

Wealthy



Income

Statement

Balance

Sheet

Income

Expenses

Assets

H ow The Wealthy LiveThey take the income of the poor and middle

class, and buy assets that produce more income

Liabilities



Income

Statement

Balance

Sheet

Income

Expenses

Assets

H ow The Wealthy LiveThey take the income of the poor and middle class,

and buy assets that produce more income

Liabilities

$ Poor and

middle class

income



Why Teach Financial L

iteracy?1. You must know the difference between an

asset and a liability and buy assets.

1. The rich buy assets but the poor and middleclass buy liabilities they think are assets.

2. The cash flow pattern of an asset is fromAssets to Income. (pg 60)

3. The cash flow pattern of a liability is fromLiabilities to Expense.




iteracy?

2. The financial nightmare

1. hard working educated couple marries and begins their

careers.

2. decide to save for dream home, and so work hard to make

more money ± taxes go way up.

3. They buy their new house and furnish it, and now have

property taxes, mortgage and credit card debt.4. Kids come along who cost money and so the parents work

harder and up go the taxes.




iteracy?3. As an employee who is a homeowner:

1. you work for someone else and are making

the owner(s) or shareholders rich.2. you work for the government, from Jan to

May to pay your taxes

3. You work for the bank, paying off your

mortgage, student loans and credit cards.




iteracy?

Remember this simple observation:

± The rich buy assets

± The poor only have expenses

± The middle class buys liabilities they think are

assets



S

o why not?

There are five reasons that people don¶t grow assetsand become financially independent.

± F ear ± of losing money

± Cynicism ± don¶t let doubts paralyze

± Laz iness ± busy people are often the most lazy

± Bad Habits ± our lives reflect our habits ± Arrogance ± arrogance + ego = ignorance



Conclusion

The author concluded by stating that parents

should teach these lessons to their children

early enough, in order to guarantee their children¶s financial future

It is never too late to start building your

financial empire. You could start right now,

with your next pay check, or by looking around

you, to see which need you can fulfill



THA NK YOU

40334248 rich dad poor dad presentation

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