Rich Dad – Poor Dad (Chapter 3&7)

Insights from Chapter 3

Mind your own business. Pay attention to your assets and nurture them and make them grow
Work for your own self and not for Employers, banks, or government because if we are working for them then making them rich not ourselves. Get out of the rat race.
The focus should be on assets and not on income statements
When you invest in assets, don’t let them come out. Every single penny becomes your employee and works for you to generate more money 24×7. You should not get rid of them.
Buy assets first and luxuries last. By doing this, your assets are creating money to buy luxuries for you.
The poor and middle class buy luxuries with their own sweat, blood, and their children’s inheritance.

Insights from Chapter 4

Taxes started with taking money from the rich and giving to the poor but it soon turned out to be the increased appetite of the government for money was so great that taxes soon needed to be levied on the middle class, and from there it kept trickling down.
Rich used Corporation (a legal structure) as a vehicle to invade taxes. It helped them protect their wealth.
Rich searched for ways and used them to minimize their tax burden. Poor did not have resources so they just sit there to let the government do what they wanted to do.
Bullies are not supervisor or boss, bullies are tax man
Having a corporation best part as it helps your earn, spend,s and then pay taxes on what is left.

Insights from Chapter 5

Having financial intelligence is very important. It helps you understand that if you are not lucky enough to have opportunities coming your way then what can you do to improve your financial position.
Financially educated people invest in real estate, bonds, dividends, real estate, stocks, etc.
Financial intelligence is important to understand your greatest wealth and greatest risks.

Insights from Chapter 7

Recommendation to young people to seek work for what they will learn, more than what they will earn. Look down the road at what; skills they want to acquire before choosing a specific profession and before getting trapped in the “Rat Race.”
Don’t dedicate your life to learn only one skill, don’t specialize. Learning a skill that was valuable in only one industry is not a good idea. If I were pushed out of that industry, my life skills would not be as valuable to another industry.
To be truly rich, we need to be able to give as well as to receive.
“Winning means being unafraid to lose.” Failure inspires winners. And failure defeats losers. It is the biggest secret of winners. It’s the secret that losers do not know.
Avoid these 5 obstacles: 1) fear, 2) cynicism, 3) laziness, 4) bad habits, and 5) arrogance.