Rich Dad Poor Dad-Robert Kiyosaki

A book that will transform your financial literacy and life

Jimmy Wu 4th Block Language Art Summer Reading Assignment

How two philosophical different dads taught his son about the true meaning of education and money.

Robert Kiyosaki, the author of this book, was born into a middle class family to a dad(also known as Poor Dad in this book, not literally though) who was the school superintendent of Hawaii with a PhD. During his childhood, he was jealous of how many of his rich classmates got things that he wanted. He along with his best friend Mike started many small businesses such as making counterfeit money ( he didn't understand money at that time) and also selling lemonade and doing other small businesses. Mike's dad who happens to be one of the richest men in Hawaii, who owns several properties such as hotel resorts, agricultural farmlands, and other businesses taught him the secrets to become according to Kiyosaki a "wealthy" man and not simply a "rich" man. Mike's dad later became his rich dad and financial mentor teaching him life experiences and contrasting what 95% of American are doing right now versus what the 5% wealthy entrepreneurs are doing. He taught him how the "Poor" will always complained they are not making enough money, how they want save their money, how they want a job with security, how they want a job with many benefits. This book will challenge many of your philosophy about education as we seniors graduate high school and enter into the real adult world.

A short summary of Chapter 1/my insights

The first chapter was my favorite part of the book. He introduces his biological father who happens to be a very educated man. His father like majority of your parents taught their children to study hard to get into a good school to get a good degree so then you can get into a good company that pays you depending on the mood of the boss and work hard so that you can "hopefully" climb the corporate letter to reach the top positions. Yet, let me tell you. You can work as hard as you want. The boss will appreciate it. However, no matter what you are just his slaves ( except with pay), and you will always be in that same position. Even you get into the highest position doing an excellent job, I can immediately fire you for someone who just graduate with more fervor to work at a fraction of your salary. The cycle will repeat over and over again because I control you and your "flow" of income. You will always be worrying how you going to put a roof over your head and provide food for your family because the income is not residual. How many of you guys have a job? Chances are you are getting pay with minimum wage with the tax deducted you will be left with around $5 dollars an hour. Mike's dad gave him a chance to work at his company paying him extremely low. Robert learned to complain for his extremely low wage. Who wouldn't ? Doesn't it sound similar to your life? His rich dad main purpose was to teach him not to work for others but thyself. His rich dad was a risk taker who drops out in middle school. Yet, he knows nothing but to make money. While poor dad ( biological father), knows nothing but solving multi-variable calculus( not literally) and knows nothing about money. Since elementary school, I heard the quote "Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of others' opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition." (Steve Jobs) Most people and teacher want the student to interpret it as don't live in other people shoes or imitate other people. I interpret this at the age of 11 as don't work for other people. I only got one life, and it is not worthwhile living in other people shoes and being a subject of my career rather than a participant. Most people will be fool just like Robert Kiyosaki when Mike's dad gradually wants to entice him by increasing his pay from a quarter, a dollar, two dollars, and later to five dollars. His poor dad he wanted to take legal action by suing him for child labor abuse because he didn't understand Mike's dad lesson of paying him extremely low. His poor dad thought that Robert was working for the sole purpose of making money. His rich dad purpose was for him to understand the "Rat Race" how people are easily manipulated by money, but at the end not realizing what they are doing is not reaching financial independence but instead financial fiasco.

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Chapter 2/3 summary and my insights

The author told us his about his childhood experience. How he learned to complain because he was getting paid paychecks to paychecks. It teaches people on how risk will be an important factor in distinguishing the minds of poor American( majority of us) from the rich people ( Bill Gates and Warren Buffet). From Chapter Two he said,“If you’re the kind of person who has no guts, you just give up every time life pushes you. If you’re that kind of person, you’ll live all your life playing it safe, doing the right things, saving yourself for something that never happens. Then, you die a boring old man.” Rich people always go after whenever there is an opportunity according to Rich Dad. In Chapter three, he advocated people to become financial literate. There are three type of education in the world. My dad taught me there is the academic education ( grade school), professional education( graduate school), and the last one most people lack is financial education( how money works). He teaches people how some business and small business failed because they don't understand money. How people make poor decisions. In this chapter, he taught people the difference between assets and liability. How many of you guys thought that my house is an asset? YOUR WRONG! According to Rich Dad, your house is a pain in your ass because the value can depreciate, you got to pay property taxes every year, you got to pay maintenance cost to it, and you have to deal with lousy tenants if you choose to rent it out. Your house seems to be assets that generate money, but it is really a liability. A liability means money has to be taken out of your pocket. Assets generate money into your pocket. This is what I mean by financial literacy.

The poor people are just blind, and let opportunity fly past them. They are too busy finding security and working their butt offs to even notice. One quote I made by myself that hopefully gives you an idea is this:" open your eyes and close your eyes, one day ha s passed; you open your eyes and close your eyes again, one month has passed; open your eyes and closes your eyes, one year has passed; open your eyes and closes your eyes, your whole life has passed; open your eyes closes your eyes, you said good bye to your love ones in your death bed; now you closes your eyes once and for all and you have just closed the last page of your life.

Summary of Chapter 4/5 and my insights

In this chapter, the author teaches people how companies like Starbucks and McDonald get money not because of how delicious they food are. He gets money because of McDonald systematic ability to find the best intersection and locations in town because people will stop to buy them when they are hungry. In Chapter 4, the author said you need to mind your own business if you want to be financial successful. Don't go into other people business. They are not worth your time. We don't live for others. Kiyosaki advocate people to get income from your assets through real estates, stocks, mutual funds, owning own business. NOT Through: profession or expertise. In Chapter 4, the author asks people, "What is your business?" And they will say, "Oh I'm a banker." Then I ask them if they own the bank? And they usually respond. "No, I work there." In that instance, they have confused their profession with their business. ( Chapter 4). For me, I understand it as don't waste money on buying brand new Jordan's or brand new cars. Once you purchased it, even if you don't drive or wear it, it is considered used. Your new car can have 0 mile in it, and once you resell it, the value goes down 50% within a few months. Instead, save money and buy tons of assets. I know there are a lot of properties you can cheaply buy in Cincinnati, OH that I found on for $20k in the year of 2010. During the summer when I check out the house, it was resold for $160k. Whoever brought that house and remodel it, he/she just made $140,000 profit. If my math is right, he just made 700% profit from the original cost he purchase it. If you have $20k lying around, go look at house. I don't shop for clothes and shoes when I am online. I look at houses. $20k is what you need to buy an used car. Now, I can buy numerous brand new cars if I want to, but you can also choose to use that $140k to purchase more assets. DON'T EVER PURCHASE LIABILITIES IF YOU PLAN TO GET RICH. THIS IS WHY MOST AMERICAN STAY POOR EVEN WHEN THERE SALARY GOES UP. As ours salary increases, our demand also goes up. This is why we are always poor. Well, if you buy real estates like Robert Kiyosaki, then you will be really rich. Yes, in the previous chapter he did said house is an liability. But because the economy is so bad these years, the government is willing to let you have the house tax free for a few years just to get rid of it. In Chapter 5, the author tries to point out how rich and powerful circumvent taxes. You know that Warren Buffet pays less taxes than everyone in this classroom while the poor pays the bulk of the taxes right? Kiyosaki teaches people how to legally bypass taxes or pay as little taxes as possible. Some way I know people do it to travel, buy assets everywhere( why give to government if you can buy stuff for yourself), report expenditure( get tax deduction, and having multiple citizenship's around the world. This is not tax evasion. This is all legal just to let you know. Corporation according to Kiyosaki buy as much stuff as possible( potential money grower in future), so then they can report less money to the government when you file your taxes with the IRS. This is all legal. You can be the victim of over taxation, and be the slave of the government while people like Jay-Z and Birdman laugh at you.

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Oil Investment Tax Benefits - Robert Kiyosaki

Chapter 6,7, and 8 summaries and my insights

In chapter 6, the author said there are three people out there. The rich who invent money, the smart who work for the rich, and the unlearned who knows nothing but manual labor for therefore works for the rich and smart. In Chapter 6, the authors want you guys to not wait for opportunity. You must and go and create opportunities. The author encourages people to hire smart people use them because they are the ones who know how to generate as much money to your pocket as possible. In chapter 7, the authors talks about work to learn and not to work for money. Just because you have a PhD, it doesn't mean you know how to put food on your table according to the author. We need to learn numerous skills in order to be rich not just what our profession taught us. I give you a real life examples. My 2nd uncle who is a graduate of California Institute of Technology ( 2nd best engineering school in US behind MIT) always look down on our family because my dad was a college dropout. Yet, my dad knows how to make money. When he graduated college with a master degree in electrical engineering, he thought that he do not need "people skills" to be successful in the real world. He thought that everyone wanted him from his prestigious college degree. It turns out that beside being a bookworm, he knows nothing about fixing real life electronics. Now, he is paid at an entry level of around $70,000 a years at a Power company in Texas. My dad on the other hand was always a businessman. He sold imitation Louis Vuitton /Coach bags in the 1980s in New York City, then he opened his first Chinese restaurant in Brooklyn, in the 1990s he opened 4 franchised fast food restaurants through out Manhattan, Queens, Brooklyn, and New Jersey. In 2007, my dad was introduced into a multi-billion dollars pharmaceutical company, and we relocated into Atlanta. My dad upline ( his business partner) makes a little over $1 million dollars a year for the REST OF HER LIFE because this business pays you in residual income. My dad business partner has two twins both age 6, and they go to a private school that costs as much as a one semester tuition at Harvard University, and they are only in elementary school in Manhattan. They buy brand new cars every two years, and they have properties all over America. They pay everything in cash. They don't let cash control them. My goal in life is to be like them. You don't have to work, and the company pays you until you died. Most American trades 1 hour of their time for one hour of their pay. If they stay home, they get no money. Entrepreneur get money no matter if they sleep, drink, vacation, or use the restroom. Although my dad is not as rich as his business partner or Robert Kiyosaki, I learned a lesson which most kids might learn after they reach into their late 20s or 30s. You will never be rich working! This is how Kiyosaki emphasized over and over through out this entire book.
Power Profile: Amber Yang

Chapter 9 and 10 Summaries as well as my insights

In Chapter 9, the author teaches us how to get started. Although this books does not teaches us how to be rich, or else everyone in the world will be rich by reading it, it does gives us hints on how to choose friend wisely. If you haven't read the book, How to Win Friends and Influence People by Dale Carnegie, I suggest you head over to your local book stores and purchase it. I read this in middle school, and it teaches you that 85% of wealth is from socializing with people. The other 15% comes from actual knowledge and education. Rich Dad Poor Dad as well as my own dad have read this book because my dad told me, " Jimmy you can study all you want, but if you don't learn to socialize with people, you will have a bad journey ahead of you. " Chapter 9 also motivates people by telling them. “If they(Bill Gates) can do it, why can’t I?”-- Chapter 9. In Chapter 10, it teaches people to search for opportunity. Go jog around in your neighborhood ,and find people that can help you reach financial independence. I don't like this chapter because it said to stop doing what you are doing. I want to ask the author: how can I provide food on table if I stop?



Cash Flow Quadarant by user154034746
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Second Part Voice by Me by user154034746
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Robert Kiyosaki Says Vemma Business Opportunity Huge - Vemma Opportunity Explained
Paul Rogers & Robert Kiyosaki on Oprah
Glenn Beck sits down w/ Robert Kiyosaki, "Rich Dad Poor Dad" Series Author of books
JR Ridinger interview on Street Smart - Bloomberg Televison


I HOPE EVERYONE OF YOU GUYS ACHIEVE FINANCIAL FREEDOM! WE CAN DEPEND ON NO ONE BUT OURSELVES. THE GOVERNMENT DOESN'T CARE WHEN SOCIAL SECURITY CHECKS RUN OUT IN 2030. LUCK BABY BOOMERS!!!! "My fellow Americans, ask not what your country can do for you, ask what you can do for your country."---John F Kennedy