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RICH DAD POOR DAD

Rich Dad Poor Dad is a book by Robert Kiyosaki and Sharon Lechter. This books talk about financial independence through investing, real estate, owning businesses, and the use of finance protection tactics.

Rich Dad Poor Dad is written in the style based on Kiyosaki's life.The book highlights the different attitudes to money, work and life of two men, and how they in turn influenced key decisions in Kiyosaki's life.

Among some of the book's topics are:

-the value of financial intelligence
-that corporations spend first, then pay taxes, while individuals must pay taxes first
-that corporations are artificial entities that anyone can use, but the poor usually don't know how

According to Kiyosaki and Lechter, wealth is measured as the number of days the income from your assets will sustain you, and financial independence is achieved when your monthly income from assets exceeds your monthly expenses. Each dad had a different way of teaching his son.




Critics:
John T. Reed, an outspoken critic of Robert Kiyosaki, says, "Rich Dad, Poor Dad contains much wrong advice, much bad advice, some dangerous advice, and virtually no good advice." He also states, "Rich Dad, Poor Dad is one of the dumbest financial advice books I have ever read. It contains many factual errors and numerous extremely unlikely accounts of events that supposedly occurred."
Sources : Wikipedia


CASHFLOW QUADRANT





A large part of Kiyosaki's teachings focus on generating passive income by means of investment opportunities, such as real estate and businesses, with the ultimate goal of being able to support oneself by such investments alone. In tandem with this, Kiyosaki defines "assets" as things that generate cash inflow, such as rental properties or businesses—and "liabilities" as things that use cash, such as houses, cars, and so on. Kiyosaki also argues that financial leverage is critically important in becoming rich.

Kiyosaki stresses what he calls "financial literacy" as the means to obtaining wealth. He says that life skills are often best learned through experience and that there are important lessons not taught in school. He says that formal education is primarily for those seeking to be employees or self-employed individuals, and that this is an "Industrial Age idea." And according to Kiyosaki, in order to obtain financial freedom, one must be either a business owner or an investor, generating passive income.




*Four Quadrant*

Kiyosaki speaks often of what he calls "The Cashflow Quadrant," a conceptual tool that aims to describe how all the money in the world is earned. Depicted in a diagram, this concept entails four groupings, split with two lines (one vertical and one horizontal). In each of the four groups there is a letter representing a way in which an individual may earn income. The letters are as follows.
* E: Employee — Working for someone else.
* S: Self-employed or Small business owner — Where a person owns his own job and is his own boss.
* B: (Boss) Business owner — Where a person owns a "system" of making money, rather than a job to make money.
* I: Investor — Spending money in order to receive a larger payout in the future.


p/s: I think, this books its not about what we need 'to do' and 'to have' in order to become financially freedom, but its more about 'how to think'...which means that u need to change your mind set to differentiate between 'opinion' & 'facts ' by knowing to read 'numbers'... heee... kalau nak lebih phm what im trying to say, kena lah baca this books dulu...=)