Summary of Rich Dad Poor Dad
The rich don't work for money. They have a never-ending income stream from their assets, which they use to buy luxury items and generate passive income. The poor must go to work every day to earn enough money to pay the bills. This is one of the primary reasons why there are rich people and poor people—the rich can live off their assets while the poor must “work for a living.”
Your House Is Not an Asset
Your house is not an asset.
It's a liability. It's an expense, not an investment!
The Rich Don't Work for Money
The Rich Don't Work for Money
The rich are what I call “asset-rich” people. They may work, but they don't work for money. Money is a byproduct of their hard work, defined as learning or building assets. For example, if you invest your time in learning how to be a better salesperson or build a website, the income from those two activities will be your reward and your paycheck.
The poor are “liability-rich” people who get paid just enough cash so that their monthly bills are covered; however, because they have no assets and live paycheck-to-paycheck without any savings or investments, they remain poor regardless of how much money comes into their bank account each month
Why Teach Financial Literacy?
Financial literacy is essential because it teaches you how to make better financial decisions. Financial literacy helps you understand the world of money, which includes knowing what you can and can't do. It also teaches you how to plan for the future, get out of debt, save for retirement and save for a house.
One reason I think financial literacy is so critical is that it helps people understand how money works today. For example: if someone wants their child to go on vacation with their friends, but doesn't have enough money, then maybe there's another way they could go on vacation without having too much debt from vacationing in other places like Hawaii or some other place far away from home where they live now.”
Taxes and Corporations
The rich use corporations to save taxes.
The rich don't work for money. They make money working for them.
The rich are not afraid of paying taxes because they know the government needs their money more than they do. If they don't pay their fair share, no one will be able to afford anything anymore, and everyone will suffer even more than they already do now (which could include you). They realize that if one person doesn't pay their fair share, then everyone else has to pick up the slack–and we all know how well that works out!
The History of Taxes and the Power of Corporations
The history of taxes is fascinating. It's not just a matter of paying money to the government but a process that impacts your wealth. When you work for someone else, they pay you in exchange for your labor. They also deduct taxes from your paycheck every month. Your employer doesn't pass on all of those deductions to the government–they keep part of them and use them as profits or bonuses for themselves or their shareholders (which includes you if you have stock).
The power of corporations has grown exponentially since their inception in the late 18th century, with businesses like Standard Oil Company founded by John D Rockefeller, who used legal loopholes to accumulate his wealth until he was worth over 200 billion dollars today! The average person cannot compete against these large corporations, which often use their political influence to avoid paying taxes while still making huge profits at our expense!
The Rich Invent Money
The rich are not afraid to take risks. They understand that failure is part of the process and are willing to put their money where their mouth is to make it happen.
The rich don't fear failure because they know that success doesn't happen overnight–it's a long-term game. And if you want to win at anything, you have to play for the long haul.
Overcoming Obstacles
One of the essential life lessons is learning how to overcome obstacles. If you can't do that, success will be complex for you.
And as we all know, there will always be obstacles- finding a job or getting out of debt. But overcoming them isn't just about persistence; it's also about skill-building and understanding why some people succeed more when they tackle challenges head-on.
In this section, I'll share with you some examples from my life where I've had to overcome an obstacle and show how persistence was vital in helping me achieve my goals!
Getting Started
The first step to getting started is to have a plan. You need to know what you want and how you will get it.
The second step is having the right mindset. Your mind will be your greatest asset or most significant liability in life, so make sure it's in tip-top shape!
The third step is having a sound support system around you when starting on your journey as an entrepreneur or business owner: family members who believe in your dreams are essential for helping keep those dreams alive when times get tough; friends encourage you when things go well; mentors offer guidance on areas where we may lack experience (and sometimes even some financial advice).
The fourth thing needed for success? Tools! These include software programs like QuickBooks Online, which helps small businesses manage their finances electronically instead of manually doing all calculations by hand each month; spreadsheets like Microsoft Excel used by accountants when calculating tax deductions available under certain circumstances such as home office expenses incurred during business travel; printouts from Google Maps showing driving directions between two locations based upon traffic conditions along various routes (so no more getting lost!).
Takeaway: When young and poor, start saving first and spend later.
The takeaway from this book is that you should start saving money and living within your means early in life before entering the workforce.
This is because it's hard to save money when you have a job and struggle to pay bills on time every month. It's much easier when you're young and can set up automatic payments into a savings account each month.
Conclusion
This book teaches you how the rich think and how you can use those lessons to become financially successful. By reading this summary, I hope you have gained a greater understanding of what it means to be rich and why financial literacy is essential for all of us.
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