Rich Dad, Poor Dad

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What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

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About

• Type:nonfiction
• [Author:: Robert T. Kiyosaki]
• [pages:: 206]
• [ddc:: 332.024]
• [Year published:: 2019]

Reading

• [status:: read]
• [rating:: 4.25]
• [added:: 2022-11-16]
• [started:: 2022-11-25]
• [read:: 2022-12-08]

Links

🛒 [kindle:: https://www.amazon.com/Rich-Dad-Poor-Teach-Middle-ebook/dp/B07C7M8SX9/ref=sr_1_1?keywords=Rich+Dad%2C+Poor+Dad&qid=1668582054&sr=8-1] 🏫 [library:: https://sunshinecoast.spydus.com/cgi-bin/spydus.exe/FULL/WPAC/BIBENQ/80365668/79718267,1] [thumbnail:: “https://m.media-amazon.com/images/I/81ZLwAwD-ML.jpg”] [id:: Cx6aDwAAQBAJ]

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Summary/Reflection

Key takeaways according to ChatGPT:

• Financial success is not determined by one’s education or job title, but by one’s financial literacy and ability to create and invest in assets.
• Financial education is crucial for achieving financial success.
• Passive income is a powerful way to build wealth.
• Consumerism and debt can be dangerous to one’s financial health.
• Hard work and persistence are important for achieving financial success.

Notes

• Claim: professional investors and business owners pay little tax compared to average workers

Assets to buy

• Businesses that do not require my presence I own them, but they are managed or run by other people. If I have to work there, it’s not a business. It becomes my job.
• Stocks
• Bonds
• Income-generating real estate
• Notes (IOUS)
• Royalties from intellectual property such as music, scripts, and patents
• Anything else that has value, produces income or appreciates, and has a ready market

Who are you working for?

Most people work for their employer first (making them rich), then the government (taxes), their bank (mortgage) and then themselves.

Taxes

• Corporations are taxed lower than individuals.
• in the US, as long as you “trade up” property, you won’t get taxed on the gains
• It’s expensive to not know the tax law
• The rich will find the loopholes in the laws. They have super smart people working for them. The poor and middle class can’t afford that so taxes hurt them more

Corporations

Business owners with corporations

1. Earn
2. Spend
3. Pay taxes

Employees who work for corporations

1. Earn
2. Pay taxes
3. Spend

Investment strategy

Robert goes for real estate as a solid base. That allows him to take risks on small-cap stocks. The higher your financial education is, the lower is your risk. If you understand what’s going on, you only take options where the odds are in your favour. Invest in financial literacy rather than stocks.

”People who avoid failure also avoid success”

It’s a game

Have fun. Sometimes you win, and sometimes you learn.

Be a generalist

• ”You want to know a little about a lot”
• Sales and Marketing are the most important specialised skills
• Switch jobs to gain diverse knowledge which builds resilience

Pay professionals

Ask them how much property or stocka they own and what percentage they pay in taxes.