RICH DAD, POOR DAD BY ROBERT T. KIYOSAKI

Chapter 3 – In this chapter author is talking about the importance of financial literacy. A good explanation is given about the difference between assets and liabilities. Assests help us generating cash flow and liabilities give us more debt. So one must enhance the column of assets and at the same time keep control on expenses and liabilities.

 

Chapter 4 – In this chapter author is talking about the importance of your own business and entrepreneurship. He author is emphasizing on the idea of having a business and/or starting with some mindful financial investment such as “Stock, Bonds, Mutual Funds, Asset which is not a liability, real estate, Royalty based income, etc…”. These are the real cash flow income where no physical presence is required of the investor. And more importantly, we can manage to start building some of these assets along with our normal jobs.

 

Chapter 5 – In this chapter history is given that how the game of “Taxes” got started. Author also talked about the power of having own corporation wrapped around with our own assets. Author also talked about financial IQ which is based on four broad areas of expertise. 1. Accounting 2. Investing 3. Understanding market (the rule of demand and supply) 4. The law. The bigger your money is the smarter you have to be, otherwise the empire starts falling down. Ultimately your knowledge is your power.

 

Chapter 6 – In this chapter author has given example of Graham Bell and the patent of his invention called, “Telephone”. Author also talked about the Cashflow game which provides instant personal feedback to the players rather than lecture. The example of the lady who got divorced and got separated from her husband was making lot of sense and providing a life lesson that not just male but each and everyone music educate themselves with the financial literacy.

 

Chapter 7 – This chapter talks about the importance of working in different departments of company and learn every aspect of business rathe being stagnant in one department and become specialized. The more specialized the person is the more riskier the income will be. Working in different departments initially may give you a less pay but in long run it may give you a large dividend. Author has also emphasized to learn, “how to sell?”. A very good example is given in the book of a news paper writer who wanted to become a best selling author. And like that some more personal examples of author’s life is given in this chapter.

 

Thank you.