CHAPTER 5 RICH DAD POOR DAD: summary / insights / self-reflection

Here are a few lessons from Chapter 5:

chapter wise summary of book rich dad
and poor dad
chapter five the rich invent money
often in the real world it is not the
smart who gets ahead
but the bold in this chapter
robert tells about teaching carrier
which he started in 1984.
he tells that from his experience that
each and every person is born with
tremendous potential and with natural
gift
yet most of us are not able to have a
lot of success in life
the reason being is because of two
factors first one is self-doubt
and second one excessive fear here we
can confidently blame the education
system which is being practiced in
school
when a kid does any mistake he or she is
being punished of making mistakes
or suppose if someone is very good in
arts or music
he or she is being judged with the kids
who are excellent in mathematics or
science
once albert einstein said everyone is
born genius
but if you evaluate fish on how fast it
can climb on tree
it will always consider itself as dumb
the financial genius inside you requires
both courage
and technical knowledge you may think
well my life is going good i have pretty
decent job
nice house cars nothing
to complain about then what is the use
of taking risks and getting to know new
things
or becoming more financially literate
simple answer is to get more options
you see in today's world the downsizing
in companies are quite prevalent
every company is trying to get more
profits and efficiency of company
executives is judged on reducing the
costs
and increasing the profits in that
process
they may in some point of time let you
go
and that if your house is not paid off
you will be in fear of losing it as well
all other things
unless you have something to fall back
on till the time you get a new job
so unless you know about the financial
iq
you will not prosper greatly today
getting rich requires a right kind of
knowledge
300 years ago the landowners were the
most wealthy people
the more land someone is having the more
wealthy he was
then came the age of industries and
production
the country who were having the
industries were rich
america is best example of it the
current ages of information technology
companies like facebook microsoft
knowledge is the new gold all these new
age companies rose to dominance
and old companies declared bankruptcy
the reason was simple the old companies
did not accept the changes
same is with human beings any person who
does not accept
changes and is not flexible is deemed to
go down the lane
now the people who want to change can be
divided into three categories
first kind of person are waiting for
right opportunity to happen
they complain that right opportunity is
not coming their way
it is just like waiting for all signals
to get green
before you start your journey for five
miles drive
second kind of people have right
opportunity but don't have enough money
so they sit there watching the
opportunity slipping away
and complaining that they would have
gotten away the rat race
if they had enough money third and final
kind of people are totally unaware
that the right opportunity is right in
front of their eyes flashing
but they don't recognize it at that time
but after other people have become rich
using the same opportunity
they are filled with emotion called
regret
financial intelligence is just having
more options
if you have more options you will be
able to make millions out of waste also
the classic example is adidas adidas is
making shoes out of plastics
the waste they converted to make
millions
but most people only know one solution
to become rich
simply work hard if you want more money
work even more harder save and borrow
the main difference between the rich and
middle or poor class is the investment
the rich understand that money is not real thing whereas middle and poor class takes money as
real rich spend their time in getting more knowledge to train their only asset the mind while poor
and middle class spend their time to work hard and harder to earn money instead of spending
time and training their mind about financial intelligence the best example is knowledge about the
stock market to see how the money is grown into millions of dollars just by having knowledge
about which is best stock by deeply studying it just for an example if you had knowledge about
business model of amazon and Netflix if you had invested your money in these 10 years ago
imagine what would have been your worth today just by doing your day-to-day job and will be
just another millionaire the beauty about this era of humanity is people become wealthy just by
using their brain without moving their body simple math and common sense are all you need to
do well financially it is not gambling if you know what you are doing it is called gambling if you
are just throwing money into deal and praying of course there is a risk but it is financial
intelligence that improves the odds thus what is risking for one person may not be risky for other
person great opportunities is not seen by eyes but as seen by the mind you just have to be
financially trained to recognize opportunity right in front of you investing is a game which when
you play by getting trained financially is a fun always remember sometime you win and
sometime you learn unlike in school which teaches that doing mistake is bad and people are
often punished for doing mistakes yet if you see how humans learns is by doing mistakes we
learn to walk by falling down the same is true for learning to ride the bike failure is part of the
process of success people who avoid failure also avoid success robert further explains about two
different kinds of investors first kind of investors who invest in the plan which are already
decided by financial planners just like mutual funds bonds etc the best analogy will be going to
computer shop and buying already assembled computer second kind of people are those who
knows how to assemble the product to make computers they achieve that by knowledge of what
is function of each part of computer which gives them very good computer with less price
similarly the other kind of people knows how financially things work and always try to
accumulate the instrument which will give them money the end and a summary of chapter 5.

Lessons From Chapter 5: Rich Dad, Poor Dad

1. Are you letting self-doubt hold you back?
“Yet the one thing that holds all of us back is some degree of self-doubt. It is not so much the
lack of technical information that holds us back, but more the lack of self-confidence.”
2. Financial expertise requires courage.
“Yet as a teacher, I recognized that it was excessive fear and self-doubt that were the greatest
detractors of personal genius.”
“….your financial genius requires both technical knowledge as well as courage.”
“If fear is too strong, the genius is suppressed.”
3. Look at the history of wealth to identify the direction you want to pursue now.
Land was wealth 300 years ago. So the person who owned the land owned the wealth. Later,
wealth was in factories and production, and America rose to dominance. The industrialist owned
the wealth. Today, wealth is in information. And the person who has the most timely information
owns the wealth.”
4. You have to know what to do with your money.
“There are a lot of people who have a lot of money and do not get ahead financially.”
“They have the money, the time is right, they have the card, but they can’t see the opportunity
staring them in the face. They fail to see how it fits into their financial plan for escaping the Rat
Race.”
5. You have what you need to increase your financial intelligence.
“The single most powerful asset we all have is our mind. If it is trained well, it can create
enormous wealth seemingly instantaneously.”
6. Don’t be afraid to learn from games.
“Games reflect behavior. They are instant feedback systems. Instead of the teacher lecturing you,
the game is giving you a personalized lecture, one that is custom-made just for you.”
7. Terms to learn more about:

Financial statements
Investment strategies
Laws
The market
Speculative stocks
Capital gains tax
How to raise capital
Ending this post with terminology which can be incorporated into your financial education
journey seemed fitting in light of the many times financial intelligence has been mentioned
through five chapter. In addition, there were numerous examples dispersed throughout the
chapter regarding benefits of a strong financial foundation. As Robert Kiyosaki says:
“…That is the primary reason I constantly encourage people to invest more in their financial
education than in stocks, real estate, or other markets. The smarter you are, the better chance you
have of beating the odds.”
Til next time,
“Often in the real world, it’s not the smart who get ahead, but the bold.” – Robert Kiyosaki
RICH DAD POOR DAD CHAPTER 5 VIDEO:

https://www.youtube.com/watch?v=QanUID7_M5U

Chapter 5:
Abundant Money Inventing money means seeking opportunities or deals when others lack skills,
knowledge, resources, or connections. This chapter introduces two types of investors.
Stakeholders who purchase portfolios. Most investorsu2019 investment methods, such as buying
ETF stocks or investing in real estate crowdfunding companies. Professional investors take care
of their investments and research the market to find out offer meaningful things and then hire
professionals for daily monitoring. Professional investors have three things in common: Find
opportunities that no one can see. Raise mutual funds. Cooperate with other smart and talented
people. Some people think they are Real estate, cheap prices do not exist anywhere, but there are
good opportunities everywhere. Ignore it. Most people do not receive financial education, nor are
they aware of the opportunities available to them.
Chapter 6:
Study, don’t work for money. Poor father is smart, well-educated and works for money because
of what work means to him. My rich dad became a learning millionaire. As Kiyosaki said, the
reason I advise young people to look for work is what they will learn, not the money they earn.
Search the streets to see what skills they want to acquire before choosing a particular industry
and running into trouble — in fact, this is exactly what Kiyosaki does. After graduating from
college, he joined the Marine Corps and learned the business skills necessary for leadership and
management. After serving the country, Kiyosaki joined Xerox, overcoming fear of being
rejected as one of the company’s top five salespeople, then left the corporate world to start a
business. Your own company. ‘Rich Dad and Poor Dad’ This chapter focuses on the synergy of
management skills necessary for business success: cash flow management, system management,
personnel management, rich dad poor dad

Chapter 7
first introduces the rich and the rich The difference between the poor is the way they deal with
fear. Robert Kiyosaki didn’t talk about how some people feel when they are scared. Go to the
dentist or find an exorcist. In this book, ‘Fear’ talks about the fear of losing money and how to
deal with this fear. This is one of the five obstacles people face when they become financially
independent: fear, absurdity, laziness, bad habits, arrogance, these barriers – and insurmountable
– that is why educated and economically intelligent people still cannot develop a great deal. A
number of obstacles to cash flow from income-generating assets. Fear The act of investing in
life, like the fear that accompanies life. Kiyosaki noted that he has never met a rich man who has
never lost money, but he has met many poor people who have never lost money on investments.
V. Real estate investors who choose to act only under certain uncertainty will be paralyzed by
fear. Those who don’t see the big picture and want to be are those who are rarely successful in
investment or life. Absurd. Everyone has doubts that it will affect their self-confidence, so it is
easy to fall into the ‘what if this happens?’ trap. Play. Especially when your friends and family
members keep reminding you of possible shortcomings. Fifth, the economic collapse, rising
interest rates and the non-payment of rent by tenants are common concerns of all real estate
investors. Although these are important things to consider, it is important not to let other
people’s jokes get out of control. Otherwise, if there is a possibility, you can freeze. Laziness. In
today’s interconnected world, it’s easy to get confused with busy work. In fact, according to rich
parents of rich parents, busy people are often the laziest. Busy people come to the office sooner
or later. They take work home and finish work in the evenings and on weekends. Before they
knew it, the people and things that were most important to them disappeared. Fifth, successful
real estate investors will not give up or make mistakes to achieve success. They must be
aggressive and, first, take care of themselves and their wealth. Bad habits, Behavior control
habits. For example, most people pay their bills before they pay. As a result, there is generally
very little investment left at the end of the month. Even if you don’t have enough money to pay
others, this will make you stronger financially, mentally, and physically. In a way, it is a form of
reverse psychology. When you develop the habit of paying first, you will be motivated to worry
about not being able to pay your creditors. In turn, you start looking for other forms of income,
such as investment property. Arrogance. Investors know what makes them profitable. But this is
something they don’t know, and they don’t know, what cost them money. When people are truly
arrogant, they honestly believe that what they don’t know is not important. Practice listening to
the opinions of others, especially opinions about money and investments. If you are missing a
topic, do your own research or find an expert on the topic. V. Overcoming the five biggest
obstacles to real estate success requires balance and focus. Today, there are many ‘chicken
flocks’ in the world who are victims of cynicism and pessimism. Rich dad and poor dad suggest
eliminating negative people and their fears from life. Instead, please look at the big picture and
always ask: \What good is this for me?

The first step

In Chapter 8, our rich fathers and our poor fathers told us that gold is everywhere, and most
people can see it without training. Part of the reason for the lack of vision and clarity comes from
the world we live in. Since childhood, we’ve been training ourselves to work hard for others,
spend hard-earned money, and borrow more when we need it. Unfortunately, people choose not
to spend time developing their financial genius. Fifth, real estate investing is a good example.
The average person can go a week with nothing in the field, while a well-trained investor can
easily find four to five major deals in one day. You can take the following ten steps to develop
your financial genius and discover the gold that already exists, and affirm that you have
discovered it: There is a deep emotional reason or purpose to do something, which is a
combination of desire and reluctance. understand the ability to choose what to do every day,
including choosing the right habits and self-education. Use the power of bonds to carefully
choose your friends, and be careful not to listen to the voice of the poor or the feared. Use the
ability to quickly learn and formulate income formulas. When you use self-discipline to manage
your cash flow, staff and personal time, you must pay first. choose excellent talents for your
team and give them wise advice, because the more they make, the more money you make. asked,
‘How long can I get my money back?’ Focus on ROI first, then focus on ROI. uses money
earned from his own property to buy luxury items and emphasizes self-discipline to attract more
money. becomes a role model and provides you with great service. Know that if you want
something, you must first provide something. Do you want more? You can perform the
following operations. In the final episode of Chapter 9 of ‘Rich Dad and Poor Dad,’ Kiyosaki
compiled the main lessons of the book into a list of actions you can start to take today: Avoid
doing this. Take a snapshot and evaluate what works and which does not work. Find new ideas
by searching for information on different and unique topics. Find mentors who have been to your
home, invite them to lunch, and move your brain. Make sure you can learn by attending classes,
attending seminars, and reading books.makes a lot of suggestions (always with an exit clause)
because eventually someone will say ‘yes’. For the next 12 months, spend 10 minutes a month
walking, running, or driving in an area, looking for changes that can produce good business. Buy
real estate when the market corrects because the profit comes from the purchase rather than the
sale. Learn how, when and where to buy through investment training. Fifth, we must have lofty
ambitions and be rich, because few thinkers have made great progress. Most people are just
looking for something affordable, so to buy a larger cake and cut it into pieces, first find the
buyer and then the seller. uses bold ideas to gather people together and buy in large quantities to
negotiate volume discounts. read the story and learn from it because history is always repeating
itself. action is always better than action.
Chapter- 5. The Rich Invent Money

Robert says, in the real world, it is not smart who gets ahead but the bold. You must be a
risk-taker sometimes to gain astronomical rewards.

What’s stopping us is not the lack of technical knowledge but the lack of self-confidence we
have.

Working hard to become rich is just an old option. Doesn’t work anymore.

If you don’t work on increasing your financial intelligence, unknowingly you will end up paying
more and more taxes.

The land was wealthy 300 years ago. Later wealth was in factories and production and today it
is in the form of information.

In this era, humans work purely with their minds and not with their bodies.

Old ideas are the biggest liability because they fail to realize while that idea of doing something
was an asset yesterday, yesterday is gone.
The single most powerful asset we all have is our mind. If it is trained well, it can create
enormous wealth seemingly instantaneously.

An untrained mind can also create extreme poverty that can crush a family for generations.

The reason rich people become richer is that they train themselves to invest and make more
money from earned money itself.

And the main reason for the majority of the people remaining poor or middle class is:

They are terrified of losing and do not take risks.

They do not train themselves about finances or learn the required skills.

Do not have proper financial planning or control over their expenses.

People prefer secure investments but the problem with “secure” investments is that they are
often sanitized, that is, made so safe that the gains are very less.
The idea in anything is to use your technical knowledge, wisdom, and love of the game to cut
the odds down and to lower the risk.

He encourages us to invest in financial education than in stocks, real estate, or other markets.
The smarter you are, the better you can play.

There is always a risk, so learn to manage risk instead of avoiding it.

There will be technological changes, market booms, and crashes, but you need to develop
financial intelligence continuously and never stop.

Find an opportunity that everyone else missed

Learn to raise money. The majority of people let their lack of money stop them from making a
deal. If you can avoid that obstacle, you will be millions ahead of those who don’t learn those
skills. It’s what you know more than what you buy. Investing is not buying. It’s more a case of
knowing

Organize smart people. Intelligent people are those who work with or hire a person who is more
intelligent than they are. Choose your advisor wisely.
Chapter- 6. Work to Learn – Don’t Work for Money

Under this rich dad poor dad summary, this chapter talks about the skills individuals
should have to achieve financial success.

For poor dad, job security means everything while for rich dad learning meant everything

You must recall that Financial intelligence is a cocktail of Accounting + Investing + Marketing +
Law. When you combine these four skills, making money becomes easier.

When Robert came out with his first book, his friend suggested keeping the name of the book as
“The economics of education” which would have hardly brought him sales but he kept it as “If
you want to be rich and happy, don’t go to school” to sound controversial.

The reason why Robert did it was that he had learned the art of sales and he wanted to be
controversial and get free publicity for his book.

Robert joined Xerox Corp only because they had the best sales training program in America.
Before then he was in the Marine Corps to learn to lead men.

He worked in Xerox until he overcame the fear of knocking on doors and being rejected.
“Workers work hard not to be fired, and owners pay just enough so that workers won’t quit”

Robert recommends young people to seek work for what they’ll learn rather than what they’ll
earn. Choose what skills you want to learn.

The world is filled with talented poor people. They learn the skill of making the best hamburgers
but not the skill of advertising and selling. McDonald’s does it the other way.

The better you are at Communication skills such as writing, speaking, and negotiating the easier
life is.

Robert advises us to spend a year learning to sell. Even if we earn nothing, our communication
skills will improve which is priceless.

Knowing a little about a lot is what a rich dad believed in while a poor dad believed in
developing just one skill.

Poor dad always said he’ll give to charity when he has extra money. But the extra money never
came. Rich dad believed in “Give and you shall receive”.

Learn how to manage cash flow, people, and the system to get rich.
Chapter- 7. Overcoming Obstacles

The author talks about five main reasons which stop an individual to gain huge wealth and make
them financially free.

The 5 reasons include:

1. Fear

The primary reason between a rich person and a poor person is how they manage fear.

Fran Tarkenton says “Winning means being unafraid to lose”.

So for most people, the reason they don’t win financially is the pain of losing money is far
greater than the joy of becoming rich. If you hate risks and worry, start early. If you start young it
is easier to be rich.

Don’t do what the poor and middle class do, that is to distribute your few eggs into many
baskets.
Instead, put a lot of your eggs in a few basket and FOCUS – Follow One Course Until
Successful

Building your asset column is a game in which attitude plays a major role.

2. Cynicism (self-doubt)

A good investor knows that the worst times are actually the best times to invest.

Most of them fail to take action because they take advice from family members or friends or
neighbors instead of experts.

When speaking of the Stock Market they say “I don’t want to lose money” instead of even trying
to understand what it is.

3. Laziness

Most of them are lazy by being busy.

If you want to exit that rat race, ask yourself “How can I afford to never work again?”

We all desire a better life. You cannot progress without having a little greed.

4. Bad Habits

Your asset column is more important than anything else.

So pay yourself first and then pay the bills.

When you do this you become stronger financially, mentally, and fiscally.

5. Arrogance

When you realize you are being ignorant in a subject, start educating yourself.

You can do that either by finding an expert or a book on the subject.

Chapter- 8. Getting Started

This chapter insight you with the guide to building personal wealth. The author gives five
suggestions to follow in the process of becoming rich.

You need to have a stronger reason or purpose for money and choose your investments
carefully. Decide when you want to retire.

Our spending habits reflect who we are. Invest in education as your mind is the biggest asset
and the most powerful tool.

Make good friends who can help you with finance and investments. Although making friends on
financial status is not said, do not take advice from your poor friends.

In today’s continuously changing world what matters is how fast you learn and not how much
you know. Master the skill of learning.

You must learn to pay yourself first. This is true self-discipline which is extensively spoken in the
book “ The richest man in Babylon”
You must pay stock-brokers well if you want some good advice. When they make money, you
too make money.

Whenever you feel short of something, give what you want first and it will come back in buckets.
This is the power of getting something from nothing which Robert calls an Indian giver.

Keep your expenses low, and build your assets first and then buy luxuries in return if you want.

Keep learning and reading about heroes in your field of expertise. Robert reads about Donald
Trump, Warren Buffet, Peter Lynch, George Soros, and Him Rogers to tap into a tremendous
source of raw genius.

Teach and you shall receive. If you want to learn about money, teach it to someone else.

Chapter- 9. Still, Want More? Here are some Do’s

The author adds that you must stop doing things that seem not viable. Start learning different
books, keep exploring new ideas, learn, and implement.

He encourages learning by taking classes, attending seminars, or online materials that are free
and inexpensive. Or read about the successful person in your industry for it is rightly said, the
more you learn the more you earn.
If you want to become big, think big. The greatest book written in the 20th century is called
“Think and Grow Rich” and not “Work hard and grow rich”

Final Words:

Now that you have read this rich dad poor dad summary, you must have sound knowledge
about managing your finance and expenses.

You might have started thinking of building your assets and reducing your liabilities and
expenses.

No learning is beneficial unless you start taking any actions no matter how small steps you take
towards saving or investing. If you can start It, you can build it.

Becoming rich is not rocket science rather it is taking better decisions and following good
investment habits.

You must build 3 different types of income: Ordinary, Portfolio, and Passive. Ordinary income is
what you earn from your work hours. Passive income is what you earn from your side hustles or
real estate investments. Portfolio income is income from paper assets like bonds and stocks.
Portfolio income is what makes Bill Gates, the richest person in the world. The key to becoming
wealthy is the ability to convert ordinary income into passive and portfolio income as quickly as
possible.

Taxes are highest on ordinary income. The least taxed income is passive.

So try to convert ordinary to passive and portfolio. We wish you the best to achieve financial
freedom.

What are your Key Learnings from this wonderful book – Rich Dad Poor Dad. Do let us know in
our comment section.

Chapter- 5.   The Rich Invent Money

         Robert says, in the real world, it is not smart who gets ahead but
the bold. You must be a risk-taker sometimes to gain astronomical
rewards.
What’s stopping us is not the lack of technical knowledge but the lack
of self-confidence we have.
Working hard to become rich is just an old option. Doesn’t work
anymore. 
If you don’t work on increasing your financial intelligence, unknowingly
you will end up paying more and more taxes.
The land was wealthy 300 years ago. Later wealth was in factories
and production and today it is in the form of information.
In this era, humans work purely with their minds and not with their
bodies. 
Old ideas are the biggest liability because they fail to realize while that
idea of doing something was an asset yesterday, yesterday is gone.
The single most powerful asset we all have is our mind. If it is trained
well, it can create enormous wealth seemingly instantaneously.
An untrained mind can also create extreme poverty that can crush a
family for generations.
The reason rich people become richer is that they train themselves to
invest and make more money from earned money itself. 
And the main reason for the majority of the people remaining poor or
middle class is:
They are terrified of losing and do not take risks.
They do not train themselves about finances or learn the
required skills.
 

Do not have proper financial planning or control over their

expenses.
People prefer secure investments but the problem with “secure”
investments is that they are often sanitized, that is, made so safe that
the gains are very less.
The idea in anything is to use your technical knowledge, wisdom, and
love of the game to cut the odds down and to lower the risk. 
He encourages us to invest in financial education than in stocks, real
estate, or other markets. The smarter you are, the better you can
play. 
There is always a risk, so learn to manage risk instead of avoiding it.
There will be technological changes, market booms, and crashes, but
you need to develop financial intelligence continuously and never
stop.
Find an opportunity that everyone else missed
Learn to raise money. The majority of people let their lack
of money stop them from making a deal. If you can avoid
that obstacle, you will be millions ahead of those who don’t
learn those skills. It’s what you know more than what you
buy. Investing is not buying. It’s more a case of knowing
 Organize smart people. Intelligent people are those who
work with or hire a person who is more intelligent than they
are. Choose your advisor wisely. 

Chapter- 6.   Work to Learn – Don’t Work for Money

         Under this rich dad poor dad summary, this chapter talks about
the skills individuals should have to achieve financial success.
For poor dad, job security means everything while for rich dad learning
meant everything  
You must recall that Financial intelligence is a cocktail of Accounting +
Investing + Marketing + Law. When you combine these four skills,
making money becomes easier. 
When Robert came out with his first book, his friend suggested
keeping the name of the book as “The economics of education” which
would have hardly brought him sales but he kept it as “If you want to
be rich and happy, don’t go to school” to sound controversial.
The reason why Robert did it was that he had learned the art of sales
and he wanted to be controversial and get free publicity for his book.
Robert joined Xerox Corp only because they had the best sales
training program in America. Before then he was in the Marine Corps
to learn to lead men. 
He worked in Xerox until he overcame the fear of knocking on doors
and being rejected.
“Workers work hard not to be fired, and owners pay just enough
so that workers won’t quit” 
Robert recommends young people to seek work for what they’ll learn
rather than what they’ll earn. Choose what skills you want to learn. 
The world is filled with talented poor people. They learn the skill of
making the best hamburgers but not the skill of advertising and selling.
McDonald’s does it the other way. 
The better you are at Communication skills such as writing, speaking,
and negotiating the easier life is.
Robert advises us to spend a year learning to sell. Even if we earn
nothing, our communication skills will improve which is priceless.
Knowing a little about a lot is what a rich dad believed in while a poor
dad believed in developing just one skill.
Poor dad always said he’ll give to charity when he has extra money.
But the extra money never came. Rich dad believed in “Give and you
shall receive”. 
Learn how to manage cash flow, people, and the system to get rich.

Chapter- 7. Overcoming Obstacles

The author talks about five main reasons which stop an individual to
gain huge wealth and make them financially free. 
The 5 reasons include:
1. Fear 
The primary reason between a rich person and a poor person is how
they manage fear.
Fran Tarkenton says “Winning means being unafraid to lose”. 
So for most people, the reason they don’t win financially is the pain of
losing money is far greater than the joy of becoming rich. If you hate
risks and worry, start early. If you start young it is easier to be rich.
Don’t do what the poor and middle class do, that is to distribute your
few eggs into many baskets. 
Instead, put a lot of your eggs in a few basket and FOCUS –
Follow One Course Until Successful
Building your asset column is a game in which attitude plays a major
role. 
2. Cynicism (self-doubt)
A good investor knows that the worst times are actually the best times
to invest. 
Most of them fail to take action because they take advice from family
members or friends or neighbors instead of experts.
When speaking of the Stock Market they say “I don’t want to lose
money” instead of even trying to understand what it is. 
3. Laziness
Most of them are lazy by being busy. 
If you want to exit that rat race, ask yourself “How can I afford to never
work again?”
We all desire a better life. You cannot progress without having a little
greed.
4. Bad Habits
Your asset column is more important than anything else. 
So pay yourself first and then pay the bills.
When you do this you become stronger financially, mentally, and
fiscally.
5. Arrogance
When you realize you are being ignorant in a subject, start educating
yourself.
You can do that either by finding an expert or a book on the subject. 

Chapter- 8.  Getting Started

 
This chapter insight you with the guide to building personal wealth.
The author gives five suggestions to follow in the process of becoming
rich.
You need to have a stronger reason or purpose for money
and choose your investments carefully. Decide when you
want to retire.
 Our spending habits reflect who we are. Invest in education
as your mind is the biggest asset and the most powerful
tool. 
Make good friends who can help you with finance and
investments. Although making friends on financial status is
not said, do not take advice from your poor friends.
In today’s continuously changing world what matters is how
fast you learn and not how much you know. Master the skill
of learning.
You must learn to pay yourself first. This is true self-
discipline which is extensively spoken in the book “ The
richest man in Babylon”
You must pay stock-brokers well if you want some good
advice. When they make money, you too make money. 
Whenever you feel short of something, give what you want
first and it will come back in buckets. This is the power of
getting something from nothing which Robert calls an
Indian giver.
Keep your expenses low, and build your assets first and
then buy luxuries in return if you want.
Keep learning and reading about heroes in your field of
expertise. Robert reads about Donald Trump, Warren
Buffet, Peter Lynch, George Soros, and Him Rogers to tap
into a tremendous source of raw genius.
Teach and you shall receive. If you want to learn about
money, teach it to someone else.   
Chapter- 9.  Still, Want More? Here are some Do’s

The author adds that you must stop doing things that seem not viable.
Start learning different books, keep exploring new ideas, learn, and
implement.
 He encourages learning by taking classes, attending seminars, or
online materials that are free and inexpensive. Or read about the
successful person in your industry for it is rightly said, the more you
learn the more you earn. 
If you want to become big, think big. The greatest book written in the
20th century is called “Think and Grow Rich” and not “Work hard and
grow rich”
Final Words:
 
Now that you have read this rich dad poor dad summary, you must
have sound knowledge about managing your finance and expenses. 
You might have started thinking of building your assets and reducing
your liabilities and expenses.
No learning is beneficial unless you start taking any actions no matter
how small steps you take towards saving or investing. If you can start
It, you can build it.
Becoming rich is not rocket science rather it is taking better decisions
and following good investment habits.
You must build 3 different types of income: Ordinary, Portfolio, and
Passive. Ordinary income is what you earn from your work hours.
Passive income is what you earn from your side hustles or real estate
investments. Portfolio income is income from paper assets like bonds
and stocks.
Portfolio income is what makes Bill Gates, the richest person in the
world. The key to becoming wealthy is the ability to convert ordinary
income into passive and portfolio income as quickly as possible.
Taxes are highest on ordinary income. The least taxed income is
passive.
So try to convert ordinary to passive and portfolio. We wish you the
best to achieve financial freedom.
What are your Key Learnings from this wonderful book – Rich Dad Poor Dad. Do let us know in
our comment section.
Also Read:
1. Think And Grow Rich | Napoleon Hill | Book Summary
2. The Business of The 21st Century | Robert T Kiyosaki | Book Summary
 
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