Summary by Asiel Zurisadai R. Gudiño
The introduction of this book was written by Sbaron Lecbter, a woman who tell us how she and her husband Michael lived before meeting Robert Kiyosaki. They had an average life, had graduated with honors and now had good contracts. They spend a fortune paying their house, vacations and the best education from her children. ne day, her child tells he hates school and he really wants to be millionaire, and she responds her !"#f you don$t graduate from college, you won$t get a good %ob"". This was the same advise that her parents use with her too& is an interesting answer, because because her child knows that many millionaire people did not finish a !career", besides this his parents have a good %ob and they aren$t rich persons. 'rom this moment, Sbaton comes to think how educates financially, but (she really have knowledge knowledge to educate her children"s children"s well) *ll what she know is the same what what her parent and her grandparents knew, and the results has being the same. *fter time, mike discovers an educational educational product named !cashflow" !cashflow" who needs people to probe the prototype. +ith that, he calls his wife and said in the phone !"it$s what you have been looking for. They choose participating in the game and bring her daughter who now has - years. They are surprised to learn how the economic world works and learn all about the !rate/ race", and how to be millionaire you need be a smart person rather have a good %ob. *round the the ne0t week, week, Sbaron"s Sbaron"s family prepare prepare a dinner dinner to meet meet Robert. +hen, he and her wife arrive, they talks a lot of different issues. Lecbter propose Robert teach to others about the !Rate/race" and he responds he already had a draft in her computer. 'inally, they make a treat. Sbaron became her co/author and together have written several best/sellers.
Kiyosaki begin the chapter telling us that in her childhood he had two dads. ne of them, her biologically dad1 being a person who studied in Stanford 2niversity, the other one doesn"t finished the eighth grade. 3e receives advises about money by each dad, and he comes to view the different different perspectives. perspectives. +ith years, Robert understood understood that that average people have the same idea about money and work, and everybody 4his biological dad for e0ample1 said the same 5uotes like !"+hen it comes to money, play it safe, don$t take risks. ne day, Robert, read a poem by Robert 'rost who says !!Two roads diverged in a wood, and # took the one less traveled by, and that has made all the difference."". difference."". 3is dad, his teachers, all of them walked by the same road, this is the reason why Robert decide listen her uneducated dad, because he says opposite that anyone. 3er uneducated father wants teach him how e0ercise the brain, how make than money works to him and other cra6y ideas. Kiyosaki says than this book is about !those" si0 lessons what her uneducated father teaches him to be a rich man.
7immy and his friends were going to their beach house, but Robert and his friend Mike weren$t invited because they are !poor boys". They coincidentally studied in the same school than the rich kids& and this is the first reason why Robert asked her dad how he can be rich. *s his father answer !"you have to learn to make money"", he and Mike became business partners and start working to complete their first idea to be rich. 'or the ne0t weeks, they ran around the neighborhood knocking on doors and asking his neighbors if they would save their toothpaste tubes. The warehouse space becomes to be her space to work. 8verything was fine, but some day after, Robert"s dad entered and discovered a mini factory of casting nickels out of lead. This was the finish of his first business& and the kids learned about !illegally actions". They asked again Robert"s dad how they could be rich, but this time he answered !!Talk to your dad, Mike. My banker told me several times that your father is brilliant when it comes to making money"". +ith new hope, they made plans on how and when to talk to Mike"s dad. Time later Mike calls Robert to say !"My dad would make us an offer"", mike"s dad accept teach them but first he propose pay them -9 cents an hour to work for three hours every Saturday. The kids accept the offer. *fter three weeks, Robert wants give up, because the pay is really bad and besides, he hasn$t been learning anything. Mike tell that his father wants talk with them. +hen Robert reclaim to Mike"s father, he responds that Robert has been learning how life teaches, and not in the conventional way like school. Rich dad, begin to e0plain why people %ust want more money: the poor and the middle class believe that money will solve the problem, but it isn"t. Rich dad proposed them back to work but now without pay. *nd that$s how the kids return to work. *fter another three weeks he gents with them and bought an ice cream to each one. 3e starts the offer with ;< cents, but they don"t accept, then he offers - dollar, ; dollars and finally < dollars. +hen the kids understand the situation, rich dad congratulates them, and begins to e0plain that people have a price and probably the same offers could be accepted by any employer, and that"s because the fear is the first motivate to work. !"The pattern of get, go to work, pay bills, get work, pay bills, their lives are then run forever by emotions""= !"This is what # call the Rat Race"" Said rich dad, and he e0plains what
important is to control the emotions and controlling their thinking. This is the way how they learn their first lesson: The rich don't work for money. money . >oys spend the ne0t week at school thinking how make money with their lesson, and finally they put a comic/book library to the public who charge -9 cents for admission, he hired Mike"s sister and paid her - dollar each week,. This is an ama6ing idea, because they use their imagination to identify an opportunity to make money and control their finances. +hen mike"s sister won"t follow working, they know how important find good staff.
This chapter was focused principally in the education. Robert tells us how his rich dad taught him about the financial Literacy and how many people think they know all of these issues. *ll the while his rich dad taught them with images, but now begins to teach diagrams and numbers who represent the flow of cash. Robert and Mike now have -? years and they have been learning with books, listened to ta0 accountants, corporate attorneys, bankers, real estate brokers, investors and so forth. Robert now has a great entrepreneurial thinking, that"s the reason why he begins to fight with his poor dad about money. money. #t is very curious because they have learned that intelligence solves problems and without intelligence money gone. This is the reason why lottery winners who were poor are poor again. 'inancially literate is the most important sub%ect to any person who wants being being rich. rich. Rich Rich dad dad taug taught ht than than everybody must know the difference between an ‘asset and a ‘liability , because it difference is found basic education. The school system has created to teach how be employers, if kids learned this difference, they could retire young. #n this chapter also talks about >uckminster >uckminster 'uller, who says !!+ealth is a person$s ability to survive so many number of days forward... or if # stopped working today, how long could # survive)"" This definition is very enlightening because Robert tells us that he retired at age @A and he tell us than !!The middle class buys liabilities they think are assets nut the wealthy class bought assets& that is all the difference.
This was very interesting chapter, firstly because the author taught us the real intentions and purposes of the biggest companies. 3e says for e0ample than Ray Kroc, the founder of McBonald$s, haven"t been working in the hamburger business, he has been working in real estate business. Second, because he show us the difference between a !profession" an !business"& and how everybody believes that is the same, but businesses don"t re5uire our presence. Third& the lesson was great because he begins to give us a list to create assets, assets, with stocks, bonds, bonds, mutual mutual funds, funds, royaltie royalties s from intellec intellectual tual property property such as music, scripts, patentsCetc. patentsCetc. 'ourth, Robert repeated a phrase that his rich dad taught him !!#f you don"t love it, you won"t take care of it", if we don"t like the game, probably we could be a loser, he recommend us that only if we really have the desire to create our own company we must try and keep our mind in our business. 'inally he taught us how the middle class tend to buy lu0uries first 4liabilities1, this is the biggest secret of the rich: The secret that puts the rich way ahead of the pack. The reward at the end of the road for diligently taking the time to mind your own business""
Robert reminds that his Rich dad e0plained the history of ta0es. 3e said that in 8ngland and *merica, originally there weren"t ta0es, when the war comes& all citi6ens were forced to pay to government. government. #n --D an income ta0 became permanent in 2nited States with the adoption of the -?th *mendment to the Eonstitution. Robert reminds that her primary teacher told them a Robin 3ood history. history. #t was very funny because everyone thought he was a hero but his rich dad called him a !crook". 8verybody says than the rich should pay more in ta0es and give it to the poor. Buring this chapter Robert shows us a reflection of people thinking about ta0es. Rich dad e0plains us that the idea of ta0es was created only to punish the rich. The passage of ta0es was only possible because the masses believed in the Robin 3ood theory of economics. The problem was that the government"s appetite for money was so great that ta0es soon needed to be levied on the middle class. The rich, on the other hand, saw in this an opportunity and created the corporations, making a difference between bureaucrat people as capitalist people. +as the knowledge of the power of the legal structure of the corporation that really gives the rich a vast advantage over the poor and the middle class. The rich always found a way to outsmart them. The corporations corporations are the biggest secret of the rich& they provided them a ta0 advantages, protection from lawsuits and personal power. +hen Robert went to work as an employee, he wanted to leave 5uickly as the rat race, so he started developing assets with their salaries. 3e accumulated much money to start investing in real estate. Time later his colleagues notice that he was enriched with the same salary that those, again Robert recogni6e than his rich dad was right. Robert says that if anybody want implement his techni5ue, we must know how the rich #F works& +ith accounting, investing, understanding market and law.
Robert tells us about his feelings. +hen he was a teacher, his heart broken to see how the fear destroyed the personal genius of each student. Robert have met many people who wants another life but they resist to the change, and they blame the economy or their boss for losing their %obs and their houses. Robert says than old ideas are their biggest liability. nce, when a woman comes to play !!Eashflow"", !!Eashflow"", she was very disappointed because because she lost. She thought that game it was a waste of time. +ith that, Robert says !!This game was designed to give every played personal feedback"". The game show us the different options for for many many diff differ eren entt fina financ ncia iall prob proble lems ms,, it thou though ghtt us how how take take risk risks s coul could d be an e0traordinary opportunity. Robert says that people who get of the Rat/race in the game the 5uickest are the people who understand numbers and have creative financial minds, like >ill Gates or Graham >ell because they are creative an calculated persons who can recogni6e the options. *ll this chapter is about how everybody doubt themselves, themselves, even knowing the answer, answer, because lack the courage to act on the answer. Robert believes than inside each one are brave, brilliant and daring character, but if fears are stronger, this ama6ing character will be suppressed.
The teaching of this chapter focuses on of an interview that Robert had in -<. The young femal female e report reporter er of the newspa newspape perr of Singa Singapo pore re spoke spoke with with Robert Robert to ask ask abou aboutt his massive sales. Buring this chatter, the girl 4who is a writter1, says to Robert !!Someday, # would like to be a bestselling author like you"", with this answer, Robert recommend her go to school to learn how sell. The Reporter was gone offended because she have a master$s degree in 8nglish Literature and obviously she was better than him. #n finish, Robert e0plain us what happens with the !talented" people in the world. 3e reminds us the e0ample of McBonalds". Maybe McBonald$s does not make the best hamburger, but they are the best selling. 8verybody can do a better hamburger than McBonald"s, but no one can be able to be rich, (why) >ecause the talented don"t matter in economy world. Robert tells us that his educated but poor dad re5uest him do an speciali6ation to be more talented and better paid. Robert said than the most important speciali6ed is about sales and understanding marketing. The ability to sell and communicate to another human to speaking and negotiating to be successful, because the communication skills priceless. #f you are talented in your business area, you will be incredibly rich. 'inally, Robert gives us another tip $$to be truly rich, we need to be able to give as well as to receive"".
Robert share us there are five main reasons why financially literate people are poor. The reason number one is the !'ear". Robert has named it !phobia of losing money" when someone don"t take risks. 3e says that nobody likes losing. Hou can"t find a happy loser, but you can find a loser loser with greatest greatest attitude, attitude, this is the biggest biggest differe difference nce.. Robert Robert remembers when his rich dad constantly constantly told with them about the greatest reason for lack of financial success was because most people played it too safe. Robert e0plain how this is insane because everybody are successful after lose. Kiyosaki advises us than every time we afraid of making a mistake of losing money, we should remember the *lamo. The *lamo is a story of brave people who choose to fight, knowing there was no hope of success, yet they chose to die. Simply we need the courage to cross the line when others backed out. +e should not bury about our failures, we should get inspired by them. Robert says than stacking the asset column is easy& we %ust need be patient and great attitude. The reason number two is the !Eynicism". Most people are poor because when it comes to investing they are doom and gloom. #t$s called !!buyer$s remorse"". Rich dad told them than Eynics never win because they can"t see any opportunities. #f you want to be rich, you should analy6e rather critici6e.
The reason number three is the !La6iness". There are all the people who desire a better life, but they don"t work to get it and then they are %udging who has been getting it, saying 5uotes as $they are ambitious$. The reason number four is !>ad habits". Robert says than our lives are a reflection of our habits more than our education. 3e remembers when he asked to his rich dad about the habits of the rich. Rich dad responds !# forced me to think and all in all made me smarter and more active when it comes to money". 3ave good habits #s like going or not going to the gym. #n finish, you could see the results. The reason number five is !*rrogance". !*rrogance". Robert says that arrogance is ego plus ignorance. ignorance. 3e declares than many people in the world of money, finances and investments, haven"t absolutely no idea what they are talking about. #f we are ignorant in sub%ects, firstly we need start educating ourselves.
Buring this chapter, Robert offer us ten steps to develop our financial genius power. Step I-. # need a reason !reater than reality , the power of spirit. *nd it is simply, if we want to be rich, we only need a strong reason. #f we don"t have a strong reason, there is no sense keeping working. Step I;. I;. " choose daily: daily : the power of choice. 'inancially with every dollar we get, we hold the power to choose our future to be poor, middle class or rich, because the habits reflect who we are. +e choose our educating or continue watching T.J. StepI StepID. D. #hoose friends carefully. carefully . They are your most important association. #t don"t consist to choose by financial statements. #t consist on keep our open mind in intelligent points and learn from them. StepI@. $aster formula and the learn a new one. The power of learning 5uickly. Like a baker who make bread follow recipe, we need create different formulas to live and get money. +orking hard for money is an old formula born in the day of cave man. StepI<. %ay yourself first. Robert first. Robert said that this is one of the most important steps in this chapter: the power of self/discipline. #f we can"t get control of ourselves, ourselves, we shouldn$t shouldn$t try to get rich. >ecause, invest don"t make sense if we don"t have this management skills to start any business. Eontrol and discipline could determine how much success management of cash flow, people and personal time we may be. Step StepI? I?.. %ay %ay your your broke brokers rs well. well. The The power power of good good advic advice. e. +hen +hen our our attor attorne neys ys,, accountants, real estate brokers or stockbrokers makes a lot of money, we too. *fter all, they educating us and they may be the best asset we could find. +e need be fair with them. StepIA. &e an ‘"ndian Giver . This is the power of getting something for nothing. #s the assets we get for free once we get our money back. Like the real estate of McBonalds".
StephI StephI.. Assets buy luuries. The luuries. The power of focus. +e should educating our family to know that %ust assets buy lu0uries. #f they don"t know this, our financial intelligence is low and money will run outside. StepI. The need for heroes. The heroes. The power of myth. +e should admire someone, because the heroes inspire us to be like them. They making look easy their work and that convinces us to do. StepI-9. Teach and you shall receive . The power of giving. #f we want something, we first need to give. *ll *ll come back. #f we want to learn about money, money, we need teach it to someone else. *ll we need to be is generous with what we have, and the powers will be generous with us.
This is the last chapter of the book, so Robert Kiyosaki share with us some the latest tips to beginning our business. 3e said than we shouldn"t stop doing what is not working and look for something new to do, in other words !look for new ideas". +e need to know what we are looking and go look for it. 'ind some friend who has done what we want to do and make make an alli allian ance ce with with him. him. Go toge togeth ther er to take take clas classe ses, s, buy buy tape tapes s 4or 4or down downlo load ad information from internet1, go to seminars and do all the things who can help us to be a smarter people. Robert advise us make all type of offers to learn how they work. 3e invit invite e us to rememb remember er the the bigges biggestt minds minds like like >ill >ill Gates Gates or Bonald Bonald Trump, Trump, and and remember the history of the biggest companies who one time started as small companies. The most important thing to get financial rewards and be richC. #s act now.
'inally, Robert tells us than the main reason he wrote this book, is to share financial knowl knowled edge ge than than peop people le can can use use to resolv resolve e their their common common probl problems ems.. 3e has has been been consid consideri ering ng how actua actually lly everyb everybody ody need needs s bette betterr inform informat ation ion to confr confron ontt finan financia ciall problems in their families. 3e wishes than readers will be successful. Robert is grateful that we have read his book, because it could provide to world smarter individuals. *nd simply he said !#f you want more money simply change your thinking, !caus !cause e money money is an illusi illusion on." ." +e %ust %ust need need starts starts our our small small idea idea and and turne turned d it into into something big. The message is clear To end, Kiyosaki advises to learn to have money work hard for us and our life will be easier and happier. lay it smart.
