Rich Dad Poor Dad by Robert Kiyosaki

> physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth.

> The poor and the middle class work for money. The rich have money work for them.

> He understood that every person has a weak and needy part of their soul that can be bought, and he knew that every individual also had a part of their soul that was resilient and could never be bought. It was only a question of which one was stronger.

> Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.

> An asset puts money in my pocket. A liability takes money out of my pocket.

> Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive?

> Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, it’s easy. There have been many days I have dreaded going to the gym, but once I am there and in motion, it is a pleasure. After the workout is over, I am always glad I talked myself into going.

> Busy people are often the most lazy. We have all heard stories of a businessman who works hard to earn money. He works hard to be a good provider for his wife and children. He spends long hours at the office and brings work home on weekends. One day he comes home to an empty house. His wife has left with the kids. He knew he and his wife had problems, but rather than work to make the relationship strong, he stayed busy at work. Dismayed, his performance at work slips and he loses his job. Today, I often meet people who are too busy to take care of their wealth. And there are people too busy to take care of their health. The cause is the same. They’re busy, and they stay busy as a way of avoiding something they do not want to face. Nobody has to tell them. Deep down they know. In fact, if you remind them, they often respond with anger or irritation. If they aren’t busy at work or with the kids, they’re often busy watching TV, fishing, playing golf, or shopping. Yet deep down they know they are avoiding something important. That’s the most common form of laziness: laziness by staying busy.

> A reason or a purpose is a combination of “wants” and “don’t wants.” When people ask me what my reason for wanting to be rich is, I tell them that it is a combination of deep emotional “wants” and “don’t wants.” I will list a few: first, the “don’t wants,” for they create the “wants.” I don’t want to work all my life. I don’t want what my parents aspired for, which was job security and a house in the suburbs. I don’t like being an employee. I hated that my dad always missed my football games because he was so busy working on his career. I hated it when my dad worked hard all his life and the government took most of what he worked for at his death. He could not even pass on what he worked so hard for when he died. The rich don’t do that. They work hard and pass it on to their children. Now the “wants.” I want to be free to travel the world and live in the lifestyle I love. I want to be young when I do this. I want to simply be free. I want control over my time and my life. I want money to work for me. Those are my deep-seated emotional reasons. What are yours? If they are not strong enough, then the reality of the road ahead may be greater than your reasons. I have lost money and been set back many times, but it was the deep emotional reasons that kept me standing up and going forward. I wanted to be free by age 40, but it took me until I was 47, with many learning experiences along the way. As I said, I wish I could say it was easy. It wasn’t. But it wasn’t that hard either. I’ve learned that, without a strong reason or purpose, anything in life is hard. IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH WORK.

> Two months later I ran into my friend again. “Does your son have his new car?” I asked. “No, he doesn’t. But I gave him $3,000 for the car. I told him to use my money instead of his college money.” “Well, that’s generous of you,” I said. “Not really. The money came with a hitch.” “So what was the hitch?” I asked. “Well, first we played your CASHFLOW game. We then had a long discussion about the wise use of money. After that, I gave him a subscription to the Wall Street Journal and a few books on the stock market.” “Then what?” I asked. “What was the catch?” “I told him the $3,000 was his, but he could not directly buy a car with it. He could use it to find a stockbroker and buy and sell stocks. Once he had made $6,000 with the $3,000, the money would be his for the car, and the $3,000 would go into his college fund.” “And what are the results?” I asked. “Well, he got lucky early in his trading, but lost everything a few days later. Then he really got interested. Today, I would say he is down $2,000, but his interest is up. He has read all the books I bought him, and he’s gone to the library to get more. He reads the Wall Street Journal voraciously, watching for indicators. He’s got only $1,000 left, but his interest and learning are sky-high. He knows that if he loses that money, he walks for two more years. But he does not seem to care. He even seems uninterested in getting a car, because he’s found a game that is more fun.” “What happens if he loses all the money?” I asked. “We’ll cross that bridge when we get to it. I’d rather have him lose everything now than wait till he’s our age to risk losing everything. And besides, that is the best $3,000 I’ve ever spent on his education. What he is learning will serve him for life, and he seems to have gained a new respect for the power of money.”

The Three Incomes In the world of accounting, there are three different types of income: 1. Ordinary earned 2. Portfolio 3. Passive When my poor dad said to me, “Go to school, get good grades, and find a safe secure job,” he was recommending I work for earned income. When my rich dad said, “The rich don’t work for money. They have their money work for them,” he was talking about passive income and portfolio income. Passive income, in most cases, is income derived from real estate investments. Portfolio income is income derived from paper assets such as stocks and bonds. Portfolio income is the income that makes Bill Gates the richest man in the world, not earned income.

Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets. Robert T. Kiyosaki, Rich Dad Poor Dad

An asset puts money in my pocket. A liability takes money out of my pocket. Robert T. Kiyosaki, Rich Dad Poor Dad

Wealth is a person’s ability to survive so many number of days forward—or, if I stopped working today, how long could I survive? Robert T. Kiyosaki, Rich Dad Poor Dad

Life is much like going to the gym. The most painful part is deciding to go. Once you get past that, it’s easy. There have been many days I have dreaded going to the gym, but once I am there and in motion, it is a pleasure. After the workout is over, I am always glad I talked myself into going. Robert T. Kiyosaki, Rich Dad Poor Dad

Busy people are often the most lazy. We have all heard stories of a businessman who works hard to earn money. He works hard to be a good provider for his wife and children. He spends long hours at the office and brings work home on weekends. One day he comes home to an empty house. His wife has left with the kids. He knew he and his wife had problems, but rather than work to make the relationship strong, he stayed busy at work. Dismayed, his performance at work slips and he loses his job. Today, I often meet people who are too busy to take care of their wealth. And there are people too busy to take care of their health. The cause is the same. They’re busy, and they stay busy as a way of avoiding something they do not want to face. Nobody has to tell them. Deep down they know. In fact, if you remind them, they often respond with anger or irritation. If they aren’t busy at work or with the kids, they’re often busy watching TV, fishing, playing golf, or shopping. Yet deep down they know they are avoiding something important. That’s the most common form of laziness: laziness by staying busy. Robert T. Kiyosaki, Rich Dad Poor Dad

A reason or a purpose is a combination of “wants” and “don’t wants.” When people ask me what my reason for wanting to be rich is, I tell them that it is a combination of deep emotional “wants” and “don’t wants.” I will list a few: first, the “don’t wants,” for they create the “wants.” I don’t want to work all my life. I don’t want what my parents aspired for, which was job security and a house in the suburbs. I don’t like being an employee. I hated that my dad always missed my football games because he was so busy working on his career. I hated it when my dad worked hard all his life and the government took most of what he worked for at his death. He could not even pass on what he worked so hard for when he died. The rich don’t do that. They work hard and pass it on to their children. Now the “wants.” I want to be free to travel the world and live in the lifestyle I love. I want to be young when I do this. I want to simply be free. I want control over my time and my life. I want money to work for me. Those are my deep-seated emotional reasons. What are yours? If they are not strong enough, then the reality of the road ahead may be greater than your reasons. I have lost money and been set back many times, but it was the deep emotional reasons that kept me standing up and going forward. I wanted to be free by age 40, but it took me until I was 47, with many learning experiences along the way. As I said, I wish I could say it was easy. It wasn’t. But it wasn’t that hard either. I’ve learned that, without a strong reason or purpose, anything in life is hard. IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH WORK. Robert T. Kiyosaki, Rich Dad Poor Dad

Two months later I ran into my friend again. “Does your son have his new car?” I asked. “No, he doesn’t. But I gave him $3,000 for the car. I told him to use my money instead of his college money.” “Well, that’s generous of you,” I said. “Not really. The money came with a hitch.” “So what was the hitch?” I asked. “Well, first we played your CASHFLOW game. We then had a long discussion about the wise use of money. After that, I gave him a subscription to the Wall Street Journal and a few books on the stock market.” “Then what?” I asked. “What was the catch?” “I told him the $3,000 was his, but he could not directly buy a car with it. He could use it to find a stockbroker and buy and sell stocks. Once he had made $6,000 with the $3,000, the money would be his for the car, and the $3,000 would go into his college fund.” “And what are the results?” I asked. “Well, he got lucky early in his trading, but lost everything a few days later. Then he really got interested. Today, I would say he is down $2,000, but his interest is up. He has read all the books I bought him, and he’s gone to the library to get more. He reads the Wall Street Journal voraciously, watching for indicators. He’s got only $1,000 left, but his interest and learning are sky-high. He knows that if he loses that money, he walks for two more years. But he does not seem to care. He even seems uninterested in getting a car, because he’s found a game that is more fun.” “What happens if he loses all the money?” I asked. “We’ll cross that bridge when we get to it. I’d rather have him lose everything now than wait till he’s our age to risk losing everything. And besides, that is the best $3,000 I’ve ever spent on his education. What he is learning will serve him for life, and he seems to have gained a new respect for the power of money.”

The Three Incomes In the world of accounting, there are three different types of income: 1. Ordinary earned 2. Portfolio 3. Passive When my poor dad said to me, “Go to school, get good grades, and find a safe secure job,” he was recommending I work for earned income. When my rich dad said, “The rich don’t work for money. They have their money work for them,” he was talking about passive income and portfolio income. Passive income, in most cases, is income derived from real estate investments. Portfolio income is income derived from paper assets such as stocks and bonds. Portfolio income is the income that makes Bill Gates the richest man in the world, not earned income.