Rich Dad Poor Dad

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RICH DAD

Poor Dad

By :Robert Kiyosaki

Sharon Lecher C.P.A

Presented by:

Pradeep Prabhuchanderkar

EMBA05 – Roll No.16

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What Rich Teach

Their Kids

About Money That

Poor & Middle class

Do Not !

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“

The poor & middle class

work for money

. “

_{. “}

The rich

_{The rich}

have money work for them

”.

_”.

THE RICH DON’T WORK

FOR MONEY

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The

love

of Money is

root of all Evil

I can’t afford it.

Study hard so that

you can find a good

company to work for

Money Play it safe,

Don’t take Risk

The

lack

of Money is

Root of all Evil

How can I afford it ?

Study Hard so that

you can find good

company to Buy.

Money- Don’t play

safe, Play it

Smart.

Learn to manage

Risk.

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Depends on

company/Government for

pay hike, medical

insurance, retirement

plan etc.

I am not interested in

Money

Our home is our largest

investment and our

greatest asset.

Believes in total financial

self reliance.

Money is

Power.

My house is a liability

and if your house is

your largest investment

you are in Trouble.

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There is a need.

)

RAT RACE

Study Hard, Graduation, Post Graduation, Job, Marriage, Study Hard, Graduation, Post Graduation, Job, Marriage,

Children,Promotions/Jobchange,House, Cars, Children,Promotions/Jobchange,House, Cars, Good School, Overtime/Part Time Jobs, Vacations

Good School, Overtime/Part Time Jobs, Vacations

…………

Fast Track

Bill Gates,Michale Jordon, Madonna…..

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There is a need.

Study Hard, Get Good Grades and you will Find a high

paying job with Great Benefits (Safe & Secure

Jobs

)

IS A BAD ADVICE

The world has changed & Changing very fast

and current educational system has failed

to cope up with the change

.

Education is the foundation of success so are

the Financial skills & Communication skills.

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There is a need.

Financial Intelligence is the Mental Process via

which we solve our Financial Problems.

But there are different set of rules with which

Rich Plays compared to Poor & Middle

class.

Example : Down Sizing/ Right Sizing of The

Company.

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Why Teach Financial Literacy ?

Retirement

:

We can work or Not Work and our wealth

grows automatically staying way ahead of

inflation.

In life it is not important how much money you make, It is

how much Money you keep.

Assets

: Puts Money in your Pocket.

Liability

: It is something that takes Money out of a

Pocket.

Wealth

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Poor /Middle Class Financial Statement

Liabilities

Home,

Consumer

Loans,

Credit cards

Assets

Expenses

Taxes,

Mortgage

Fixed

Expenses

Income

Pay Check.

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Rich Class Financial Statement

Liabilities

Assets

Stocks,

Bonds,

Real

Estate,IPR

Expenses

Income

Dividends,

Interest,

Rental

Income

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Why Teach Financial Literacy ?

88997777

The way to get Richer is to increase the Cash

Flow from the Assets, keep the expenses

less than the cash Flow generated from

these assets.

Reinvestment process continues with more

and more income from Sources other than

the Physical labor.

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Mind your Own Business

Profession & Business : McDonald Story

Financial Struggle is often directly the result of

People working all their life for some one else.

Owner or Share Holders of the Company

Government ( Taxes )

Banks ( Repayment of Loans )

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History of Taxes & Power of Corporation

Robin Hood : Collect it from Rich & Distribute it to the Poor. Robin Hood : Collect it from Rich & Distribute it to the Poor.

Financial I.Q

.

It is made up of knowledge from Four Broad Areas of Expertise It is made up of knowledge from Four Broad Areas of Expertise

.

Accounting

Accounting : Financial Literacy is the ability to read & understand : Financial Literacy is the ability to read & understand financial statements.

financial statements. Investing

Investing : Science of Money MAKING Money : Science of Money MAKING Money Understanding Market

Understanding Market : Technical aspect of science of : Technical aspect of science of Supply & Demand

Supply & Demand Law

Law : To make advantages from various provisions in the law : To make advantages from various provisions in the law for Growth of the Organization.

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The Rich Invent Money

Example : Graham Bell .Formation Of AT & T. Example : Graham Bell .Formation Of AT & T.

Every Person is Genius ,but excessive Fear & Self Doubt are the Every Person is Genius ,but excessive Fear & Self Doubt are the greatest Destructor of Personal Genius.

greatest Destructor of Personal Genius. Why Develop Financial I.Q. ?

Why Develop Financial I.Q. ?

In today's changing world Job security CAN NOT be taken for In today's changing world Job security CAN NOT be taken for

granted. granted.

Hence we Must have more OPTIONS. Hence we Must have more OPTIONS.

MONEY IS NOT REAL MONEY IS NOT REAL

In Today's Information Age Just Ideas and agreements are In Today's Information Age Just Ideas and agreements are

exchanged to MAKE MONEY. exchanged to MAKE MONEY.

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The Rich Invent Money

Financial Intelligence.

To develop Financial Intelligence fallowing 3 skills needs to be To develop Financial Intelligence fallowing 3 skills needs to be

Developed. Developed. 5)

5) Skill to apply your mind , what others miss to see with their Skill to apply your mind , what others miss to see with their Eyes.

Eyes. 7)

7) Skill to raise Money :Investing is not buying. It is more case Skill to raise Money :Investing is not buying. It is more case of knowing.

of knowing. 9)

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Work To Learn – DON’T WORK FOR MONEY

Specialization narrows your options and hence your Earning Specialization narrows your options and hence your Earning Abilities.

Abilities.

The main management skills needed for Success are, The main management skills needed for Success are, 4)

4) The management of CASH FLOW.The management of CASH FLOW. 5)

5) The management of Systems ( Including yourself & time with The management of Systems ( Including yourself & time with family)

family) 6)

6) The management of People.The management of People. 7)

7) Skill of selling & MarketingSkill of selling & Marketing 8)

8) Communication skill and Most importantly,Communication skill and Most importantly, 9)

9) We need to be a good Teacher.We need to be a good Teacher.

To be truly Rich , we need to be able to give as well as to To be truly Rich , we need to be able to give as well as to receive.

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Overcoming Obstacles

The five main reasons Financially literate people struggle to The five main reasons Financially literate people struggle to

became Financially Independent are, became Financially Independent are, 4)

4) Fear of loosing Money : Fear of loosing Money : 6)

6) CynicismCynicism 8)

8) LazinessLaziness 10)

10) Bad HabitsBad Habits 12)

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Overcoming Obstacles

To Overcome To Overcome

Fear of loosing Money

Fear of loosing Money : :

A) Start EarlyA) Start Early

B) Plan Your Retirement ( Hire Financial Planner )B) Plan Your Retirement ( Hire Financial Planner )

C) Be FocusedC) Be Focused

Winning means being unafraid to loose. Winning means being unafraid to loose.

2) 2) Cynicism Cynicism : Unchecked doubts & Fear creates a cynic.: Unchecked doubts & Fear creates a cynic.

Cynic Criticizes, Winners Analyzes.Cynic Criticizes, Winners Analyzes.

3) 3) LazinessLaziness ; Cure for laziness is to induce a little GREED. ; Cure for laziness is to induce a little GREED.

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Overcoming Obstacles

To Overcome, To Overcome,

4) Bad Habits : Developing Good Money habit is very important.4) Bad Habits : Developing Good Money habit is very important.

Example : Paying bill on the LAST DAY of due Period is Example : Paying bill on the LAST DAY of due Period is

A GOOD HABIT.A GOOD HABIT.

Paying You First Is A GOOD HABIT.Paying You First Is A GOOD HABIT.

5) Arrogance : Arrogance is defined as an EGO + Ignorance.5) Arrogance : Arrogance is defined as an EGO + Ignorance.

Arrogance always makes you to loose Money.Arrogance always makes you to loose Money.

Start Educating yourself by finding an Expert or a Start Educating yourself by finding an Expert or a book on a subject where you know you are ignorant.

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Getting Started

1) You need a reason greater than Reality. 1) You need a reason greater than Reality.

a) I don’t want to work whole of my life.a) I don’t want to work whole of my life.

b) I don’t want to be Employee.b) I don’t want to be Employee.

C) I want control over my Time & LifeC) I want control over my Time & Life

d) I want Money to work for Me.d) I want Money to work for Me. 2) I choose daily.

2) I choose daily.

I choose to be rich & I make that choice Every Day.I choose to be rich & I make that choice Every Day.

I choose to invest in Education & welcomes NEW Ideas.I choose to invest in Education & welcomes NEW Ideas. 3) Choose Friends Carefully.

3) Choose Friends Carefully.

Choose Rich friends & Poor Friends carefully.Choose Rich friends & Poor Friends carefully.

Rich Friends to learn about inside trading, & From poor friends Rich Friends to learn about inside trading, & From poor friends You can learn What not to Do.

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Getting Started

4)

4) Master a formula and then NEW ONE.Master a formula and then NEW ONE.

In changing world learning New formula Quickly is the secrete of In changing world learning New formula Quickly is the secrete of Success.

Success. 5)

5) Pay Yourself First.Pay Yourself First.

A) Don’t get into large Debt Position.A) Don’t get into large Debt Position.

B) When you come up short, Don’t dip into your savings or B) When you come up short, Don’t dip into your savings or investment.

investment.

Let pressure inspire your Financial intelligence to come up with Let pressure inspire your Financial intelligence to come up with new ways of Making Money to pay your bills.

new ways of Making Money to pay your bills. 6)

6) Pay your brokers wellPay your brokers well : : Take good care of those people who help Take good care of those people who help you to make money work for you.

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Getting Started

7)

7) Be An Indian GiverBe An Indian Giver : :

How fast do I get my Money back?How fast do I get my Money back?

So in any investment recover your principle as quickly as possibleSo in any investment recover your principle as quickly as possible

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8) Assets buys luxuriesAssets buys luxuries::

Assets generates Income, Income buys Luxury items.Assets generates Income, Income buys Luxury items.

The need for Heroes

The need for Heroes : : When it comes Investing ,too many When it comes Investing ,too many

people make it sound hard. Instead find heroes (Experts )who will

make it look easy.

Teach and you shall receive it

Teach and you shall receive it : : Teach , what you know to Teach , what you know to others who needs it and you will receive new ideas & finer

others who needs it and you will receive new ideas & finer

distinction.

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The book that rocked THE FINANCIAL WORLD! J.P. The book that rocked THE FINANCIAL WORLD! J.P.

Morgan declares “ Rich Dad Poor Dad, a must read A Morgan declares “ Rich Dad Poor Dad, a must read A

Must read for Millionaires. –

Must read for Millionaires. – THE WALL STREET THE WALL STREET JOURNAL.

JOURNAL.

The main reason people struggle financially is The main reason people struggle financially is

because they have spent years in school but learned because they have spent years in school but learned nothing about money. The result is that people learn nothing about money. The result is that people learn to work for money …. But never learn to have money to work for money …. But never learn to have money

work for them. –

work for them. – Robert T. Kiyoaski.Robert T. Kiyoaski. “

“ I love my children & want to ensure they get the I love my children & want to ensure they get the best education possible! Traditional schooling, while best education possible! Traditional schooling, while

very important, is no longer enough, we all need to very important, is no longer enough, we all need to

understand money and how it works.”

understand money and how it works.” – Sharon – Sharon Lechter.

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