Executive Summary of Rich Dad Poor Dad, which is written by Robert Kiyosaki. About Book About Author Evaluation Learning Chapters Thank you.

1. `
Submitted by: Nishchay Garg
“The main reason people strugglefinancially is because they have spent years in schoolbut
learned nothingaboutmoney… but never learns to have money workforthem”.
- RobertT. Kiyosaki
Robert Kiyosaki has challenged and changedthe way tens ofmillions ofpeople aroundthe world
think about money. With perspectives that often contradict conventional wisdom, Robert has
earned a reputation for straight talk, irreverence and courage. He is regarded worldwide as
passionate advocate for financial education.
Rich DadPoor Dad-The#1 personal Financebookfor all time!
“RichDad Poor Dad is a starting point foranyone looking to gain controloftheir financial
future.”-USA TODAY

2. Robert Kiyosaki
Robert T. Kiyosaki is best knownas the author of Rich
Dad PoorDad. This is the #1 personal finance book of
all time, which has challenged and changed the way
tensofmillions ofpeople aroundtheworldthink about
money.
His booktitle holdsfourofthetopten spotson Nielsen
Bookscan List's Lift-to-Date Sales from 2001-2008 alone. In addition, Robert has been featured on
shows such as Larry King Live, Oprah, The Doctors, Bloomberg International Television and CNN.
Educational Entrepreneur, co-creator of the
CASHFLOW® board game, founder of the
financial education-based Rich Dad Company
and author of New York Times Bestsellers:
RichDadPoorDad,ConspiracyoftheRich:The
8 New Rules of Money, and Unfair Advantage

3. Summary
Robert T. Kiyosaki is a simple 9-year-old boy living a simple life with his father, the
educated one (poordad).Robert regardhis biologicalfatherasthepooronebecause he is
educated person but not financially intelligent. Together with Mike, his best friend they
want to become rich because other kids do not want to play with them, they said they
were “poor kids”. That’s the time they ask help from Mike’s dad, the less educated one
(rich dad). He considers his best friend’s dad as his rich dad because he became his first
mentor on financial literacy. The rich dad agreed when the two boys said they want to
learn howto becomerich. The first lesson that mike’s dad teachesthem is how to get out
into a“rat-race “. Therich dadsaid“Most peopleareafraidofnot having anymoney.That's
why theytakealow paying job.”He said to themthat theymust “not work for money and
let the money work for them”. The rich dad wants the two boys to overcome the fear of
working for nothing. Those teaching give them the lessons that they had adopt it in life.
Years after, Mike inherits his father’s business and grows this into an empire. And likehis
father he raises his son to control the business when he gets older. On the other hand,
Robert became successful in lifetogetherwith hiswife Kimand at theageof 47 he retired.
Peoplearound keep asking him howto becomerich and healways say that “ifyou want to
becomerich,youmust needto befinanciallyliterate.”Healso saidthat “Intelligencesolves
problems and produces money. Money without financial intelligence is money soon
gone.” This teaches the lesson of teaching people not to be wise with your money once
you have it, but rather be smart with your money before you have it. He also said that in
financial literacy a person must know the difference between an asset and liabilities. An
asset can put moneyon yourpocket andaliabilitycantakeyourmoneyout ofyourpocket.
Robert also point out theideaof“minding yourown business”. In otherwords, “one should
not mind their employer’s business but rather strive to be their own boss and have their
own business”. Rich people owned a business while poor people work for business but
anybodycan have business as long as theyhave determinationand these skills cannot be
learned from school.

4. Kiyosaki remember what his rich dad told him about the history of taxes and how
important owning a business can make a person rich and avoid taxes. He explains that
corporationsare just a legalbodycreatedbyalegaldocument. Therich used thepowerof
corporationagainst taxationbecause it offers a lot of tax advantagesand protectionfrom
lawsuits. He also emphasizes in the story about a woman who is a newspaper reporter.
She has a Master’s Degree in English Literature. This woman wants someday to be a
bestselling author like Robert but her novels not seem to go anywhere that’s why she
sticks into that paperjob.She asks for any suggestionfrom Robert and he suggested that
she must study sales, but the woman get offended, why would she study sale if she want
to beabestselling author.Kiyoski’spoint isto studysales in orderto know some strategies
of advertising products especially her novels but schooling is not enough, a person must
gain knowledge through experience. The rich people create money; it is not necessarily
that you need to be educated to become rich and successful because in business it is a
matter of using mind and talent. Although schooling is important but there are some
lessons in life that cannot be learned from school and sometimes it is by a person’s own
experience. In learning’s Robert said “it is important to find employment where you will
learn a lot of different skills even if it means earning less in you takehome pay” meaning,
working not for money instead work to learn.

5. Evaluation
The bookdoesa fantastic jobteaching howto think about work and money. I like
the way it is explained at a level that anyone can understand, specifically the concept
aroundhowtherich buyassets, andthepoorbuyliabilities.Thisbookhasvaluablelessons
for peopleofallages.It waswritten becausetheauthorbelievesthat traditionalschooling
is also very important but no longerenough in regardsto financing. Let me sayright away
that I am very glad it was written and I found the book very valuable. The thoughts and
ideas I obtained from the book have made me realize that I can control of my financial
future. Most peoplearenot rich,wealthyandnot even literatewhen it comes to theworld
of money. Rich Dad Poor Dad simply helps guide the average person to start thinking
differently when it comes to money. It is the best starting point that one can takeon the
road to financial literacy. For all of those who have always believed there is more to life
than our everyday routine and for those who know there has to be a better way, but just
don't know what it is. You have to read Rich Dad Poor Dad, I guaranty it will open your
eyes and mind, explode the myth that you need to earn a high income to become rich,
challenge the belief that your house is an asset, show parents why they can’t rely on
school system to teach their kids about money, define once and for all an asset and a
liability and teach you what to teach your kids about money for their future financial
success. In case you believe working on a company can make you out of struggle, think
again,you willnever berich working for someone else instead, lookforsomeone that can
work for you. Rich Dad Poor Dad will relate to you in so many ways, and if you’re open
minded, it may just help you to change your life.

6. Learning
Chapter 1: Rich Dad, Poor Dad
Youcan learn some valuablelessons from thetwo dads but when youcompare themyou
can see the contrasts between their views about working hard, getting an education,
saving and investing and realizing howhabitsoftherich and poorsignificantlydiffer.One
would say “go to school, and after you finish your studies find a high paying job”. The
other would say “there are some skills you cannot learn from school”. There are many
different views and ideas that can influence a lot of mind.
Chapter 2: The Rich Don’t Work for Money
Baseon thebooktherearetwo mainemotionswhich canprevent peoplefromdeveloping
wealth: fear and desire; fear of not being able to pay expenses or fear of losing money
keep many focus in theday-to-daywork, preventing many from evaluating investments
and other sources of income. The desire to keep physically good looking appearance by
buying expensive clothesor even to become“in with the trend” bybuying gadgetsdrives
expenses so high that peoplehaveno choicebut to stayfocused on theirjobs to maintain
their lifestyle. Lesson one is all about understanding those two emotions and stopping
them from hindering one’s success. The Rich Dad was more focused on ways of creating
his own money, money that increases even if you don’t work, rather thanwaiting for the
next job with a pay raise.

7. Chapter 3: Why Teach Financial Literacy?
Financial literacy is simply means the study of managing one’s finances. There are a few
basic terms one would need to know in order to understand financial literacy. The first is
Income and Expenses. “Income” is simply the amount of money you earn like wages,
salaries, etc. “Expenses” are thingsliketaxes, food,rent, clothes,fun, and transportation.
The second one is theAsset and Liabilities.An “asset” is something that putsmoney into
your pocket likestocks,bonds,investments. A “liability”isanything that takesmoneyout
of your pocket home mortgages, loans, credit card debts. The rich keep his income and
used thereturn of their investment to cover up theirexpenses. While thepoor uses their
salaries and wages to cover up their expenses. It simply means one must invest to cover
his expenses rather than waiting for the pay raise.
Chapter 4: Mind Your Own Business
As mentioned on the previous chapter, focusing on your asset is the key quality
that must be developed in order to gain wealth. The rich focus on improving the size of
theirinvestments rather thansimplywaiting ordemanding payrises in theirincome. This
means keep your expenses low, reduce your liabilities and build a base of solid assets.
Chapter 5: The History of Taxes and the Power of Corporations
By creating a personal corporation,the rich are ableto avoid many of the personal taxes
because it offers a lot of protection from them and there is a corporate exemption. But
take note that not paying taxes is called tax evasion and it is illegal! By filing as a
corporation,therich are able to mitigatetheirlosses to only theamount theyinvested in
the corporation. They are able to pay taxes after they pay for expenses. For people who
have jobs, it’s the opposite case where taxes are taken out of pay checks before one is
ableto cover expenses. In Comparison the rich peoplewith corporationsearn, spend and
pay taxes while the people who work for corporations earn, pay and spend taxes.

8. Chapter 6: The Rich Invent Money
Behindthe wealth,a combinationof financial intelligence and a littlebit of guts is
what behindin thischapter.Self-doubt holdsbacka lot ofpeople.In order to gain wealth,
self-confidence is really needed. While saving at the bank seems secure, it is not
worthwhile because savings rates are often below the rate of inflation. “Scared money
doesn’t make money.” Kiyosaki follows the same logic, if you truly want to see your
investments grow exponentially you must be willing to put in the money in places that
show relative risk.
“Find the game where you can win, and then commit your life to playing it; and play to
win.”
― Robert Kiyosaki