secrets of million dollar boy:rich dad poor dad

Hello delegates,
            don’t you think our favorite author Robert Kiyosaki, is a multi billionaire by all standards. When I came across this book,

• 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) 
• Of course his poor dad (his biological father), was a PhD holder who worked for Government, but never really attained financial independence, while his rich dad (his friend’s father) did not graduate from high school, but later became a very rich man…hmmm interesting . 
• Parents’ advice of getting good grades and jobs will not necessarily lead to financial independence, because schools do not equip kids  with the information needed to ensure financial independence.

Yes , now I’m going to tell you the RICH  DAD POOR DAD MYSTREY, It’s encompassing both the millionaire tricks of business and life..how to balance life and business with this.

FINANCIAL LITERACY = FINANCIAL INDEPENDENCE

• A true tale of two dads— one a highly educated professor, the other, an eighth grade dropout. Educated dad left his family with nothing, except maybe some unpaid bills. The dropout later became one of Hawaii’s richest men and left his son an empire. One dad would say, “I can’t afford it yeahh” while the other, asked, “How can I afford it?” 
• Rich dad teaches two boys priceless lessons on money, by making them learn through experience. The most important lesson of all is How to Use Your Mind and Time to create personal wealth. 

Free yourself from the proverbial “rat race”. Learn to spot opportunities, create solutions and “mind your own business”. Learn to make money work for you, and not be its slave.

Friends, here is your million dollar tricks, have a look…don’t miss it…

I want to specify one more thing that the author has been achieved, whatever he says….

LESSON 1 : 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 by cutting your expenses moderately, investing wisely and creating opportunities to earn passive incomes outside of salaries
•  Seek to be a business owner and/or an investor, rather than an employee

LESSON 2: MASTER FINANCE LITERACY:

• Financial intelligence equips you with the what is required to make money that will last for generations, while money without financial intelligence is soon gone 
• Financial literacy teaches that it does not matter how much money you make, but how much money you keep 
• It also teaches that Investments can be made at each income level and if you invest today you will guarantee your financial future 

Differentiate between an asset and liability, and invest in assets 

Assets generate income, while liabilities generate expenses; i.e. your GSM mobile phone could be an asset or liability depending on what it is used for

LESSON3: MIND YOUR OWN BUSINESS

• Mind your own business. i.e. while excelling with your qualifications and keeping your day time job, also look for other opportunities elsewhere to accumulate wealth 
• Do not depend only on a salaried job, or else you will continue to work for your boss, the government and the banks (if you have taken a loan), with little or nothing left to invest in yourself

  Some sources of unearned income:

–      Dividends

–      Interest Payments

–      Rent

–      Royalties

Key financial iq componenets

         to gain financial literacy; rich dad stresses  the importance of learning

1. Accounting:

        It pays to know how to read financial statements. This knowledge will pay off for you and your business.

2. Investment Strategy.

      This skill will sharpen with experience. Kiyosaki and Mike spent many boyhood hours sitting in on Rich Dad’s meetings with   brokers, accountants, and attorneys.

3. Market Behavior. 

         Know the laws of Supply and Demand. No business owner can do without understanding these basic principles of the market. Bill Gates saw what people needed. Open your eyes to opportunities. Look at what sells and who buys.

4. Law 

       Kiyosaki recommends doing everything you can to grow your business within legal boundaries. Know your corporate, state, and accounting laws.

Lesson:learn to minimise the tax u pay

•  Where the cash flows make sense, you are better off managing your finances through a corporation rather than as an employee, because of the different tax advantages you can get. 
• As an individual, your income is taxed, and what you have left is your disposable income. 
• As a corporation, you first make your money, then you take out your expenses. The profit is what is taxed, hence you pay less tax

LESSON 4: THE RICH INVENT MONEY

• Learn by heart that you can use other people’s money to create a financial empire for yourself without necessarily using yours i.e. it takes money for you to make money, but you don’t necessarily have to use yours
•  For you to be wealthy, the earnings from your assets (investments) should be enough to fund your expenses. You don’t qualify to incur additional liability, until you have funded an asset which yields enough income to fund the liability. 
•  Seek to attain a point where if you resigned from your job, you could fund your lifestyle using unearned income from your investments. 
• Make good use of your time and find the best deals. 
•  Identify an opportunity everyone else has missed.

LESSON5: WORK TO LEARN NOT FOR MONEY:

• Don’t grab a job for what you can earn, pick a job to learn about business systems, about managing people and other skills that would prepare you to run your own business, or manage your own investment. 
• Money can be illusion that clouds good judgment. Fear and greed do not allow people make rational decisions

The Golden Rules are :

 PAY YOURSELF FIRST.
Rich dad says paying yourself first forces you to create more sources of income to cover your expenses. It’s a simple rule that works like this:- 

What you think know …A job is a short-term solution to a long-term problem, is not it???

In my view a highly paid slave is still a slave. Why climb the corporate ladder when you can own the ladder?

Now you may think about..How over confidence is the blog guy…itz ok..but it is the sarcastic truth..Whenever you get a chance..please do  try to become a independent entrepreneur.

The Rich with Corporations		People who work for corporations
Earn  money		Earn  money
Spend as desired		Pay taxes Pay Taxes
Then Pay taxes		Spend the extra

• 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…..