đź“ť Notes
Today I often wonder what will soon happen when we have millions of people who need financial and medical assistance. They will be dependent upon their families or the government for financial support. What will happen when Medicare and Social Security run out of money? How will a nation survive if teaching children about money continues to be left to parents—most of whom will be, or already are, poor? (Page 3)
- Contrast to poverty book
My poor dad would say, “I’m not interested in money,” or “Money doesn’t matter.” My rich dad always said, “Money is power.” (Page 5)
Opportunities come and go. Being able to know when to make quick decisions is an important skill. You have the opportunity that you asked (Page 16)
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 some event that never happens. Then you die a boring old man. You’ll have lots of friends who really like you because you were such a nice hardworking guy. But the truth is that you let life push you into submission. Deep down you were terrified of taking risks. You really wanted to win, but the fear of losing was greater than the excitement of winning. Deep inside, you and only you will know you didn’t go for it. You chose to play it safe.” (Page 20)
I have more than 150 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.” (Page 21)
We will always have emotions of fear and greed. From here on in, it’s imperative for you to use those emotions to your advantage, and for the long term to not let your emotions control your thinking. Most people use fear and greed against themselves. (Page 34)
We only memorize historical dates and names, not the lesson.” (Page 36)
our business generated money for us, even when we weren’t physically there. Our money worked for us. (Page 40)
Intelligence solves problems and produces money. Money without financial intelligence is money soon gone. (Page 42)
Higher incomes cause higher taxes, also called “bracket creep.” (Page 55)
All too often, instead of trusting their inner wisdom, that genius inside, most people follow the crowd. They do things because everybody else does them. They conform, rather than question. (Page 56)
According to psychiatrists, the fear of public speaking is caused by the fear of ostracism, the fear of standing out, the fear of criticism, the fear of ridicule, and the fear of being an outcast. The fear of being different prevents most people from seeking new ways to solve their problems. (Page 57)
“An intelligent person hires people who are more intelligent than he is.” (Page 58)
schools were designed to produce good employees, instead of employers. (Page 58)
If my wife and I were to buy a bigger, flashier house, we realize it wouldn’t be an asset. It would be a liability since it would take money out of our pocket. (Page 60)
The asset column generates more than enough income to cover expenses, with the balance reinvested into the asset column. The asset column continues to grow and, therefore, the income it produces grows with it. The result is that the rich get richer! (Page 64)
Employees make their business owner or the shareholders rich, not themselves. Your efforts and success will help provide for the owner’s success and retirement. (Page 68)
The government takes its share from your paycheck before you even see it. By working harder, you simply increase the amount of taxes taken by the government. Most people work from January to May just for the government (Page 68)
Average Americans today work four to five months for the government just to cover their taxes. (Page 84)
Accounting is financial literacy or the ability to read numbers. This is a vital skill if you want to build an empire. (Page 88)
A corporation can do many things that an employee cannot, like pay expenses before paying taxes. That is a whole area of expertise that is very exciting. Employees earn and get taxed, and they try to live on what is left. A corporation earns, spends everything it can, and is taxed on anything that is left. It’s one of the biggest legal tax loopholes that the rich use. (Page 89)
Often in the real world, it’s not the smart who get ahead, but the bold. (Page 92)
Because you want to be the kind of person who creates your own luck. (Page 97)
two main vehicles to achieve financial growth: real estate and small-cap stocks. I use real estate as my foundation. Day in and day out, my properties provide cash flow and occasional spurts of growth in value. The small-cap stocks are used for fast growth. (Page 105)
My overall philosophy is to plant seeds inside my asset column That is my formula. I start small and plant seeds. Some grow; some don’t. (Page 108)
We buy high-risk, speculative private companies that are just about to go public on a stock exchange in the United States or Canada. (Page 108)
That is why I found school so silly. In school we learn that mistakes are bad, and we are punished for making them. Yet if you look at the way humans are designed to learn, we learn by making mistakes. (Page 110)
Intelligent people are those who work with or hire a person who is more intelligent than they are. When you need advice, make sure you choose your advisor wisely. (Page 113)
financial intelligence is a synergy of accounting, investing, marketing, and law. (Page 117)
So I chose a title that would get me on more TV and radio shows, simply because I was willing to be controversial. Many people thought I was a fruitcake, but the book sold and sold. (Page 118)
schools reward people who study more and more about less and less. Rich dad encouraged me to do exactly the opposite. “You want to know a little about a lot” was his suggestion. That is why for years I worked in different areas of his companies. (Page 118)
Job security meant everything to my educated dad. Learning meant everything to my rich dad. (Page 119)
The net result is that most workers never get ahead. They do what they’ve been taught to do: Get a secure job. Most workers focus on working for pay and benefits that reward them in the short term, but are often disastrous in the long run. (Page 120)
When I ask the classes I teach, “How many of you can cook a better hamburger than McDonald’s?” almost all the students raise their hands. I then ask, “So if most of you can cook a better hamburger, how come McDonald’s makes more money than you?” The answer is obvious: McDonald’s is excellent at business systems. The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems. (Page 124)
All too often, they’re poor or struggle financially or earn less than they are capable of, not because of what they know, but because of what they do not know. They focus on perfecting their skills at building a better hamburger rather than the skills of selling and delivering the hamburger. (Page 124)
He never understood that the more specialized you become, the more you are trapped and dependent on that specialty. (Page 125)
The skills of selling and marketing are difficult for most people, primarily due to their fear of rejection. The better you are at communicating, negotiating, and handling your fear of rejection, the easier life is. (Page 126)
But it’s not having fear that is the problem. It’s how you handle fear. It’s how you handle losing. (Page 129)
Most people dream of being rich, but are terrified of losing money. (Page 131)
I’ve said that falling off my bike was part of learning to ride. I remember falling off only made me more determined to learn to ride, not less. I also said that I have never met a golfer who has never lost a ball. For top professional golfers, losing a ball or a tournament provides the inspiration to be better, to practice harder, to study more. That’s what makes them better. For winners, losing inspires them. For losers, losing defeats them. (Page 132)
building your asset column is a game in which attitude plays a major role. It takes guts, patience, and a great attitude toward failure (Page 134)
I hold a small portion of my assets in tax-lien certificates (Page 136)
In the stock market, I often hear people say, “I don’t want to lose money.” Well, what makes them think I or anyone else likes losing money? They don’t make money because they choose to not lose money. Instead of analyzing, they close their minds to another powerful investment vehicle, the stock market. (Page 138)
I often meet people who are too busy to take care of their wealth. And there are people too busy to take care of their health. The cause is the same. They’re busy, and they stay busy as a way of avoiding something they do not want to face. (Page 139)
Their friends who have no money have never come to them to ask them how they did it. But they do come asking for one of two things, or both: a loan, or a job. (Page 150)
The reason you want to have rich friends is because that is where the money is made. It’s made on information. You want to hear about the next boom, get in, and get out before the next bust. (Page 151)
right away anyway. Kim and I have excellent credit. We just don’t cave in to pressure and spend our (Page 157)
We just don’t cave in to pressure and spend our savings or liquidate stocks to pay for consumer debt. (Page 157)
Don’t get into large debt positions that you have to pay for. Keep your expenses low. Build up assets first. (Page 157)
A common bad habit is innocently called “dipping into savings.” The rich know that savings are only used to create more money, not to pay bills. (Page 157)
A good broker saves me time, in addition to making me money—like when I bought the vacant land for $9,000 and sold it immediately for over $25,000 so I could buy my Porsche quicker. A broker is my eyes and ears in the market. They’re there every day so I do not have to be. I’d rather play golf. People who sell their house on their own must not value their time much. Why would I want to save a few bucks when I could use that time to make more money or spend it with those I love? (Page 158)
Stop doing what you’re doing. In other words, take a break and assess what is working and what is not working. (Page 167)
Look for new ideas. (Page 167)
Find someone who has done what you want to do. Take them to lunch and ask them for tips and tricks of the trade. (Page 168)
Take classes, read, and attend seminars. (Page 168)
profit is made when you buy, not when you sell. (Page 170)
Small people remain small because they think small, act alone, or don’t act all. (Page 172)
The government taxes the income you work hard for more than the income your money works hard for.” (Page 176)