Kiyosaki was taught that financial intelligence is the way to be rich. People today are desire money and are afraid of not having money; they spend their lives working for money. Kiyosaki says we need to have money work for us. Kiyosaki wanted to grow up not having to live in the “rat race”. He wanted to be able to go where he wanted to go, do the things he wanted to do, to not have anything holding him down, and that is why he strived to become “rich”. This book is for of guide lines that Kiyosaki used or experienced and he wants others to learn from.
The first chapter Rich Dad Poor Dad is where Kiyosaki introduces his two fathers. He says, “one was highly educated and intelligent;… [and the other] never finished the eighth grade.” Both his fathers were strong and influential, and both were successful in their careers; but one struggled financially all his life and the other became one of the richest men in Hawaii. Kiyosaki was glad to have two fathers to learn from learned from. He was able to see the point of view of both the poor and the rich. Even though the time he started learning from them when he was nine years-old the rich dad was not yet rich and the poor dad not yet poor.
At the age of nine Kiyosaki started listening to his rich dad. Rich dad taught six main lessons. The second chapter was the first lesson, The Rich Don’t Work for Money. Kiyosaki asked both dads if they could teach him how to get rich. Poor dad, Kiyosaki’s dad, responded that you need to make money. When asked how, he responded to use your head. Mike, Kiyosaki’s best friend and first business partner, remembered an experiment from a science book, and they started casting nickels out of lead, making their own money. At this time poor dad told them what the word counterfeiting meant and that that was illegal. Not wanting the boys to give up poor dad directed them to ask Mike’s dad, rich dad, to learn how get rich.
Rich dad, an investor, agreed that he will teach the two boys how to become rich, but you will work for me and learn; no classroom-style teaching. Rich dad set the two boys up to work at his superette on Saturdays for ten cents an hour for three hours. After a few weeks working for low pay for rich dad, Kiyosaki got sick of it and told Mike he wanted to quit. Going back to see rich dad, Kiyosaki that it was cruel and too low a pay. Rich dad explained that was how most life was; it pushes you around. You need to fight back; don’t work for money, instead have money work for you. This is where it all started. The rich don’t work for money. They buy assets and have money work for them.
Chapter three, lesson two, Why Teach Financial Literacy, is where Kiyosaki tells how rich dad taught him and Mike about money. Rich dad showed them the difference between assets and liabilities and the different ways cash flows: for a poor person or a young person still at home, cash goes into income then out expense; for a middle class person, cash goes into income, into liabilities, then out expenses; and for a wealthy person cash goes in assets into income. To be able to have money you need to know how money works. Just because you have a great job does not mean you will be rich.
Chapter four, lesson three, Mind Your Own Business, Kiyosaki uses the founder of McDonald’s, Ray Kroc, words. Keith Cunningham, a friend of Kiyosaki, attended one of Kroc’s speeches at a MBA class. After the talk some of the students, including Keith, asked Kroc to go have a drink with them. When everyone had their drinks in hand, Kroc asked “What business am I in?” Thinking it was a joke everyone laughed. Kroc asked again and someone said “…you’re in the hamburger business.” Kroc laughed knowing everyone thought that, but he said “I’m not in the hamburger business. My business is real estate…. Mind your own business.” McDonald’s today is the largest single owner of real estate in the world; it has some of the most valuable intersections and street corners in America. Kiyosaki says that we need to know what our business is. Kroc’s profession is selling hamburgers, but his business is real estate. Our business is different than our profession, and we need to know the difference.
Chapter five, lesson four, The History of Taxes And The Power Of Corporations, gives you a little history about taxes. There were not always taxes like there is now, but over time, after the government got a taste of them, taxes have not left. If you know how taxes and the law work, you can better use your money. Kiyosaki says that peoples financial IQ is made up of knowledge form four broad areas of expertise: Accounting; Investing; Understanding Markets; and the Law. If you know all these you can advance financially; You need accounting so you can understand how money works; You need investing so you will know how to have money work for you; You need to understand the markets so you do not make mistakes; and you need the law so you can work with the law. For a corporation you can pay your expenses before taxes, this way you spend less on taxes.
Chapter six, lesson five, The Rich Invent Money, you look for opportunities. The rich look for ways that money can work for them. Kiyosaki had money work for him when he bought a house and resold it.
Chapter seven, lesson six, Work to Learn- Don’t Work for Money, Kiyosaki stresses the need to have financial intelligence. If you do not develop your financial intelligence, you will get stuck in the rat race and work for money. You need to take jobs that teach you. Kiyosaki had an interview with a young female reporter in 1995. The reporter said how she would like to become a best-selling author, like Kiyosaki. Kiyosaki suggested going to a school that trains people to sell. The reporter was insulted; she had a master’s degree in English Literature, why should she learn how to sell? Kiyosaki pointed to at the “Selling” in the sentence “Best Selling Author”, and told the reporter, she had all she needed to write; now she needs to know how to sell. Sadly the reporter would not listen to his advice, and not many people do. Kiyosaki was trying to show her how to work to learn, not work for money.
Chapter eight, Overcoming Obstacles, Kiyosaki tells us how the average person would take his advice. How people need to overcome their obstacles: fear; cynicism; laziness; bad habits; and arrogance. If people can overcome their obstacles they may find their way out of the rat race, and into wealth.
Chapter nine, Getting Started, Kiyosaki tells the steps he used to gain wealth: You need a reason greater than reality to stay on the long path to wealth; You have to choose daily that you will use every dollar to gain wealth; you have to chose friends carefully and learn from them; you must master a formula and then learn a new one, you must master the steps and qualities to become rich; pay yourself first, have self discipline; pay your brokers well, if the people are professionals their services should make you money; be an “Indian giver”, or when you give someone / an entity some money you take it back soon after, gaining profit without losing the initial amount; have you assets buy luxuries, that way you do not buy liabilities; you need heroes, even in your working life so you can have a goal to look to; and lastly, teach and you shall receive, the power of giving.
Chapter ten, Still Want More? Here are Some To Do’s, is full of motivation for people to move forward. Do not give up. Take action in your life.
Lastly the epilogue, How To Pay for a Child’s College Education of Only $7,000, tells the main reason why Kiyosaki wrote this book. He is showing people how financial intelligence can be used to solve many of life’s common problems. A self-made person can start small with an idea, and then turn into something big.
That was Kiyosaki book with an explanation for every chapter. How he started to ask around about getting rich when he was young, and how his two fathers taught him. Kiyosaki spent his time learning from the jobs he took. He started telling people the way it worked for him, and how his experiences ether ended bad or good. People would listen to Kiyosaki or not. He let people choose for themselves, but he gave them his knowledge to help them along.
I fell like Kiyosaki had a well organized argument and set up. He was so smart that it was a little hard following the dollar around but he did well on explaining how money works. This book can be related to sociology because it talks about people interaction. Kiyosaki shows many ways that could help people stay out of poverty. He wants to help people, and have people learn from his experiences. I really like Kiyosaki way of looking at things. I agree that with financial knowledge we can do better in our lives. With a little more knowhow of how money works, people would have a better chance to succeed. I am going to strengthen my financial intelligence and apply Kiyosaki words to my life.