PDF Drive is your search engine for PDF files. As of today we have 78,, eBooks for you to download for free. No annoying ads, no download limits, enjoy . Rich Dad's Conspiracy of the Rich. Pages·· MB·51, Downloads. A Note from Robert Kiyosaki: Why I Wrote This Book for You · PART ONE. Robert Kiyosaki was developing, that he arranged for both of us to participate in a test .. After reading the scattered sections, I decided the book had merit and.
|Language:||English, Spanish, Dutch|
|Genre:||Health & Fitness|
|Distribution:||Free* [*Registration Required]|
Robert Kiyosaki holding an iPad Robert T. Kiyosaki This book explains how some of the investors in the 10% have gained 90% of the wealth and how you. Discover ideas about Free Pdf Books. March Escape the Rat Race: Learn How Money Works and Become a Rich Kid by Robert Kiyosaki. Free Pdf. Robert's definition of the “Rat Race” "If you look at the life of the average- educated, hard-working person, there is a similar path. The child is born and goes to.
How do I make income beyond just earning a higher salary? Congratulations on a good job with a solid employer. Who are you selling your time to?
Who are you making rich?
Borrow money to get what you want. Focus on creating money first. Then buy things with the excess. Learning the First Lesson As a 9 year old, Robert Kiyosaki is rejected socially by the rich kids in his public school.
He asks his dad, a teacher, how to get rich and make money, but his dad has no satisfactory answer. He commiserates with his best friend Mike, the only other non-visibly-wealthy kid in the school.
They start a misguided idea to melt down metal toothpaste tubes and mint their own nickels. Rich Dad is different since he seems to be paving his own way. Rich Dad is busy, but meets with them early in the morning between his regular business meetings with his managers.
Take it or leave it. Opportunities come and go. Being able to know when to make quick decisions is an important skill. You have an opportunity that you asked for. They know this is an unfair wage. After laboring for 3 hours over 3 weekends, Robert Kiyosaki gets upset and wants to quit.
Before the meeting, Poor Dad advises the author to demand what he deserved — at least 25 cents an hour. Without the raise, Robert Kiyosaki should quit immediately. In less than a month, you sound like most of my employees. Fear governs their emotions around money, and they become a slave to working to make money. Life pushes everyone around. Many people quit and let the pushing happen. Some get angry and push back, but in the wrong direction — against the boss, their job, their spouse, or the world.
Others learn the lesson, try to get better, and move on. By getting angry, the author showed Rich Dad that he had enough passion and independence of mind to be worth teaching.
I have more than employees, and not one of them has asked me what I know about money. They ask me for a job and a paycheck, but never to teach them about money. So most will spend the best years of their lives working for money, not really understanding what it is they are working for. So I decided to let life push you around a bit so you could hear me. When Kiyosaki is confused, Rich Dad advises him to use his head.
Each person has a weak and needy part of their soul that can be bought. Each person also has a part of their soul that is strong and can never be bought. The point of the lesson: most people run endlessly in a loop between fear and greed.
Fear of not having money makes people work hard. Then once they get a paycheck, greed gets them salivating over all the things money can buy. They spend the money thinking it can buy joy, but the joy is short-lived.
Soon they have money problems, and fear drives back in. This cycles endlessly, even as their paycheck increases — this is the Rat Race. Money ends up running their lives. Even rich people are subject to this fear — the more money they get, the more terrified they are of losing it. They fear losing social standing, and the weak part of their soul gets even more desperate.
Rich Dad was trying to teach the kids not to give into emotions around money, but rather to delay reactions and think. Taking on the job for free was the first resistance to emotions. Next, raising the hourly wage for the kids was a metaphor for adult salaries. Incremental raises trigger hopes for incremental advancements to life, causing people to live in a perpetual loop and never truly exploring their dreams.
Keep using your brain, work for free, and soon your mind will show you ways of making money far beyond what I could ever pay you. You will see things that other people never see. Opportunities right in front of their noses. Could they collect the books, then start a comic book library open to the public?
They could charge other kids 10 cents admission for unlimited reading — a clear bargain, since a comic costs 10 cents each. After three months, bullies broke into the room, and Rich Dad suggested they shut down the business. But the lesson was learned: by not being paid, they were forced to find opportunities to make money. They avoided being distracted by the short-term carrot.
Many then take their earnings to 1 buy stuff they think will make them happy but this is short-lived , 2 save the remainder in a conservative way. They get rich so by owning things. No one on the Forbes billionaire list got there purely with a salary.
This can be a piece of a business, real estate, natural resource, intellectual property, or other similar things. But somehow or other, you need to own equity in something, instead of just selling your time. Time only scales linearly. The key to financial independence is having money that makes more money. The bottom diagram is the balance sheet.
It shows how much in assets and liabilities you have. Assets are things that make money over time. Liabilities are something that spend money over time. Meanwhile, they minimize their spending on Expenses and buying Liabilities, to have more money to buy more Assets. Your profession is how you draw a salary. Your business is how, independent of you, your money makes more money. The profession is selling hamburger franchises, but the business is accumulating income-producing real estate.
You might have the goal of financial independence, which is to no longer be dependent on your wages. The basic steps for financial independence are: Figure out how much money you need per year to survive. Figure out how much in assets you need to generate a return that exceeds the first number after taxes and expenses. Acquire assets that return that amount.
So how do you put your money to work for you? The key is to buy things that generate income assets. You do NOT want to buy things that lose money over time or incur large expenses liabilities. This is obvious enough. But the most deceptive investments look like assets, but are actually liabilities. In steady state, this represents monthly negative cashflow that requires income to compensate.
Now she has high monthly expenses, so she has to keep working to sustain it. The money tied up as a down payment, building up home equity, and paying expenses has a large opportunity cost.
That money could be better spent on higher returning assets. Even if real estate appreciates, you get the gain only on liquidation. Because your cash is spent on the house, you never have enough money to think about what to do with it.
This prevents building up the financial education to become a sophisticated investor. And typically the monthly mortgage payment is lower than the monthly rent, which is where people often get tripped up.
A proper analysis would compare the long-term outcome of these two options: the cost of buying a home, including the down payment, annual expenses, and likely appreciation of home value renting an identical property, increases in rental costs in proportion with home value appreciation, and investment returns of the extra cash from not buying a home e. Having done this exercise myself, the two options are a wash, depending on your assumptions of how the housing market and stock market move.
Neither is a clear home run as you would expect in a relatively efficient market like real estate. There are better places to put your money with better returns and more robust diversification. Buy only the house that you need. Do not buy to keep up with the Joneses — the money you save can be better employed elsewhere. This is the cause of the vicious cycle putting you in the rat race.
This includes bigger houses, fancier cars, house renovations, golf clubs. Not only do consumption goods not generate income, they also depreciate incredibly quickly. Corollary: buy used goods instead of obsessing about it being new. Be especially careful when buying the thing incurs more debt.
This is a major way to increase expenses without increasing income, thus digging you into a deeper hole. People have a tendency to spend money when they get it. This is why giving people more money without financial education rarely improves their situation. You can still buy nice things and live life well.
But ideally afford your luxuries using extra cash flow from your assets. Rich people buy luxuries last.
Assets So what are real assets? If you have to work there for it to generate money, it becomes your job. Only start a business if you have a desire for it. The odds are against you and the stress is high. Stock, bonds, funds, and other securities. Income-generating real estate. In particular: Using debt to lever up on more houses. Then sell off a piece to someone else.
This will let you broaden the opportunities you find.
When selling a property, trade it for a larger one to avoid immediate taxes on the gain. Section Notes IOUs. Royalties from intellectual property such as music, scripts, patents. Anything that has value, produces income, appreciates, and has a ready market. Every dollar you spend today is a dollar that does not work for you again, in perpetuity. Further, avoid situations where you have to dip into savings or investments.
Find creative ways to come up with the money, and protect your assets. Pay Yourself First Most people have the habit of paying their bills first, then saving whatever money is left.
Rich Dad inverted this — he bought assets first, then paid his bills as late as possible. His reasoning — the threat of having bill collectors was supremely strong motivation to creatively find ways to make more money. In contrast, paying yourself last gives little pressure to generate more money. Like this summary? Have too much to read? You'll love my new book summary product Shortform.
Even better, it helps you remember what you read, so you can make your life better. What's special about Shortform: The world's highest quality book summaries - comprehensive, concise, and everything you need to know Interactive exercises that teach you to apply what you've learned Discussion communities - get the best advice from other readers Get the world's best book summaries now Lesson 3: Reduce Taxes Through Corporations [[[[I found this section the worst in Rich Dad, Poor Dad.
And taken incorrectly, it could get you into trouble. Caveat: none of this is tax advice, you should consult a tax attorney for advice, and executing some of this too liberally is illegal. They were then extended to middle and lower classes to support a growing government appetite for money, and eventually taxation disproportionately punishes the poor. The tax man will always take more if you let him. Form your own corporation.
If you want to be rich, simply spend your life downloading assets. If you want to be poor or middle class, spend your life downloading liabilities. And we know by now that spending more is not related to being happier. Kiyosaki explains that too many working professionals are struggling financially, they find themselves working harder and harder but never getting any further.
The main reasons that people are entering the workforce with little financial education. Whatever they have been taught in schools tends to be focused on how to make money, they forget about the importance of what to do with it when you have it and how to spend money wisely. SO one of the biggest questions we face now is about owning a house. Is a house considered an asset or a liability?
Kiyosaki explains that the majority of working professionals never actually own their homes, they spend their entire working life paying off a mortgage. The pattern of upgrading and downloading a new house every few years leads to new year loans, each one larger than the previous.
Kiyosaki believes that having all of your money tied up in your house results in missed opportunities. You are forced to work harder and are fearful of ever being in a position without a regular, steady income. You pour all of your hard earned cash into the house leaving little to invest in any other assets. Kiyosaki points out that most people download houses that are in fact too expensive, this is often because banks are all too happy to lend big amounts of money with high interest.
By downloading a house that is outside of your reasonable budget you are missing out on opportunities. Kiyosaki explains that you lose time, the time spent paying off your mortgage is time you lose with other assets that could be growing in value.
You miss out on additional capital from investments. Often any extra money is spent on maintenance for the house rather than investing. Because they have no money to invest, they simply do not invest.
They work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage. Lesson No. Kiyosaki explains that people spend their entire life working for someone else, they are in constant financial strife and they have nothing to show for it when they reach the end of their career.
He explains that there are two schools of thought when it comes to earning an income:. Kiyosaki examined the current education system and how they are getting youth ready for the workforce.
They focus all of the attention on getting a good job through learning scholastic skills. Students then go on to study engineering, science, arts, armed forces etc. Once they are appropriately prepared and have the right qualifications, they enter the workforce and start earning an income.
Whenever Kiyosaki asks someone what their business is, they tend to reply with their job title. This highlights the problem that Kiyosaki has with schooling. Schools encourage students to become what they study. A student studying cooking becomes a chef, someone studying law becomes a lawyer. People are so focused on the career and becoming what they study that they forget about the potential of owning their own business. Instead of focusing on making themselves richer, they dedicate all of their time and energy into making someone else richer.
Your business revolves around your asset column, as opposed to your income column. The rich focus on their asset columns while everyone else focuses on their income statements. So how do you start to mind your own business? Kiyosaki recommends to being by keeping your day job but start focusing on downloading real assets.
Eliminate any liabilities that you regularly spend money on. Kiyosaki points out that despite the fact that a bank manager will let you list a car as an asset, cars are actually considerable liabilities.
Teach them young and set them up for a successful future by explaining the difference between assets and liabilities. Kiyosaki points out the fact that the rich avoid being taxed. The middle class are the ones who end up paying for the poor. The truly rich generally have a knowledge of the legal structure of corporations and how this power can be used to avoid the rules that taxes employ.
Rich people do not voluntarily pay more taxes. Whenever new initiatives are put in place, designed to tax the rich, the rich do their research and push back. The poor and the middle classes do not have the education or the power to allow themselves to push back, so they are the ones who end up paying all of the taxes. In order to be rich, you need to have a decent financial IQ. Kiyosaki explains that this is made up of considerable knowledge in accounting, investing, understanding markets, and the law.
Kiyosaki explains that in order to have a significant increase in income, most people would only need to educate themselves and master one more skill. He believes that mastering accounting, investing, marketing and law make making money considerably easier.
Kiyosaki believes that the best thing is to know a little about a lot. Not a lot about a little. Look down the road at what; skills they want to acquire before choosing a specific profession and before getting trapped in the Rat Race. Kiyosaki explains that there is an option for people who are unwilling to learn a new skill and are determined to become specialised in a single field. If this is the approach you want to take, ensure that you work for a company that is unionised.
Specialists are well protected within labour unions. These students will likely be moved all around the company, never specialising in just one department to ensure that they understand the entire organisation. This is something that rich people often do with their children or children of their friends. Management skills that should be taught include managing cash flow, managing systems and managing other people.
I Will Teach You to be Rich helps you identify where your money is going and gets it working for you so that you can save for the things that will bring you true happiness and lead a rich life. The book outlines a six-week program which identifies how to create a system for optimising your bill payments, savings and investments so that your money goes to all the right places with less than an hour of maintenance a month.
Guidelines is my eBook that summarises the main lessons from 33 of the best-selling self-help books in one place. It is the ultimate book summary; Available as a page ebook and minute audio book.