Rich Dad Poor Dad

3 things i learned and will apply to my life from Rich DAD POOR DAD

  1. Don’t be afraid to take losses- sometimes you are so afraid to take losses that you freeze and do nothing.
  2. You need to continue to learn and learn fast! Mentors, start taking people to lunch. Attend seminars. READ



Chapter 1: The Rich Don’t Work for Money

  • The way of thinking will Shape you into who you are.
  • If you want something, you have to think how do I get that something.
  • First Life Lesson: Life teaches you
    • Sometimes you really want to win, but the fear of losing stops you and you play it safe..
      • I experienced this in poker and at work. I wad afraid of losing, so I don’t attack.
    • When you blame someone you need to change them. When you blame yourself you can change yourself. Learn, and Grow Wiser.
    • Fear and Ignorance are the main cause of poverty
    • Fear and Greed traps people in a cycle
    • Learn to use your emotions to think
    • Johnny read this same book and he still talk about the pension that he’ll get from the army. This means he isn’t using the information in this book. Make sure you actually use information
  • Find opportunities to make money work for you
    • In their example, they paid an employee to operate a personal library. Although this was only possible because they found a market of willing customers, and found COG for less than Sales


  • Trepidation: a feeling of fear or agitation about something that may happen
  • Indignant: feeling or showing anger/ annoyance at what is perceived as unfair treatment
  • Derelict: a person abandon by society, esp a person without a permanent means of support; homeless

Chapter 2: Why Teach Financial Literacy

  • Today we live in a world of even fast change
    • You will suffer great distress and hardship if you don’t focus on your greatest wealth: education
    • Be flexible, keep an open mind, and learn. You will grow richer and richer despite tough times
    • Intelligence solves problems and produces money
  • Rule #1: know the difference between Assets and Liabilities
  • Taxes: Social security is 6.2% and Medicare tax is 1.45%
  • Japanese believe in 3 powers: Power of the Sword (weapon), the Jewel (money), and the mirror (knowledge)
    • Mirror is the most treasured
    • Using the power of the mirror ask yourself does what you’re doing make sense
      • Does going to play poker make sense? Blowing $200, wasting time, dealing with emotions and everything else after you lose, the constant waiting. My end game is not in poker.
      • High emotions tend to lower financial intelligence


  • Ostracism: exclusion by general consent from social acceptance, privileges, friendship
  • beck: a gesture used to signal, summon, or direct
  • ancillary: subordinate
  • tenuous: thin or slender in form

Chapter 3: Mind your own business


Chapter 4: The History of Taxes and the Power of Corporations

  • Taxes: created by the government.
    • Initially used to tax rich, but trickled down to the poor
    • Rich learned to use Corps to avoid paying taxes
      • Corp was created in the old days to limit losses on voyages; a boat and a crew was a corp.
    • Real estate: if you trade up in real estate, you won’t be taxed on gains until you liquidate
  • Without knowledge the world pushes you around
    • Be smart and you won’t be pushed around as much
  • Financial IQ is made up of 4 sections
    • Accounting, Investing, Understanding markets, The law aka Taxes
    • Corporations can pay for expenses before it pays taxes

Chapter 5:  The Rich Invent Money

  • It is not the smart who gets ahead, but the bold
    • Excessive fear and self doubt is the greatest detractor of personal genius
    • All of us have two character traits: the ability to be brave and fearless, and also the ability to get down on your knees and beg
  • Ideas or way of doing something was an asset yesterday, but yesterday is gone
  • Luck is created
    • take whatever happens and make it better
  • I welcome change rather than cling to the past
  • Invest in your financial education. Have fun. EITHER YOU WIN OR YOU LEARN
    • Unfortunately the main reason most people are afraid of losing is because they are terrified of losing
  • You want to create investments. Put pieces of opportunities together. To do this we need 3 things
    • Find opportunity that everyone else missed, raise money without a bank, organize smart people (hire or ask people who are smarter than you for advice)


  • doodad: a decorative ornament or decoration

Chapter 6: Working to Learn. Don’t work for money

  • This chapter is on the skills that you need to succeed. There is a lot but dealing with people is on the top of the list
  • Rich dad says you want to know a little about a lot.
    • you need to learn all aspects of a business, don’t specialize
  • Rich dad explained that the hardest part of running a company is managing people
    • Get good at selling
    • Get over fear of failure and rejection
  • You can’t teach a old dog new tricks! Unless a person is used to changing, its hard to change
  • Main management skills
    • management of CF
    • management of systems
    • management of people
  • Most important specialized skill are sales and marketing
    • diffcult for most people primarily due to their fear of rejection
  • Communication skills such as writing, speaking, and negotiating are crucial to a life of success
  • The better you are at COMMUNICATING, NEGOTIATING, and HANDLING YOUR FEAR OF REJECTION, the easier life gets
  • Be a good teacher as well as a good student
  • To be truly rich, we need to be able to give as well as receive

Chapter 7: Overcoming Obstacles

  • Once you become financially literate, you might not develop your asset column because of roadblocks
    • Fear
    • cynicism
    • laziness
    • bad habits
    • arrogance
  • FEAR and Cynicism
    • Over come your FEARS. Winning means being unafraid of losing
      • The world is filled with chicken littles who are yelling the sky is falling, the sky is falling
      • we have a chicken little inside each of us and it is filled with doubt. We should refer to these doubts as noise
        • make sure if you listen to someone, listen to someone with knowledge on the subject
          • gave an example of a time when a person he knew could have made $ buying real estate, but that person didn’t because he listened to his neighbor, who isn’t even an investor
          • Kind of like the time when I wanted to ask for a salary increase but my parents and sister talked me out of it
    • to a savy investor, recessions, and depressions are actually the best time to make money
    • Don’t bury your failures. Take your failures and turn them into ralling cries
    • When you start out, you can’t be balance. BE FOCUS
    • Tax lien certificates have better returns than CD but it is riskier.
      • when a property owner fails to pay taxes on a property. The state puts a lien, or a legal claim on the property. Then this lien is auctioned off. Winner of lien pays off taxes then notify property owner to pay them instead of the state. IF property owner fails to pay the lien holder, lien holder can foreclose on the property.
    • Doubt is expensive
      • Cynics criticize. Winners analyze
    • Most people focus on their “I don’t want”  instead of their “I do want”
      • This is the same concept as that book Think and Grow Rich. Focus on the positives
  • Laziness
    • people tend to avoid doing something by staying busy. Busy watching TV, golfing, etc
    • to overcome laziness you should have a little greed
      • don’t say you can’t afford it, say how can you afford it
    • Whenever you feel lazy, ask yourself “what is in it for me?”
    • Guilt is worse than greed, for guilt robs the body of its soul
  • Cool quote: DO what you feel in your heart to be right- for you will be criticized anyway. You’ll be damned if you do, and damned if you don’t ~ Eleanor Roosevelt
  • Bad habits
    • you must pay yourself first then pay your bills. If you don’t have enough money that is motivation to think of ways to make money
  • Overcoming arrogance
    • every time you are arrogant you will lose money
      • I think I am arrogant to think I can win $ playing poker
    • When you know you are ignorant in a subject, start evaluating yourself by finding an expert in the field or a book on the subject


  • Impending: about to happen
  • im= not
  • despondent: feeling or showing profound hopelessness
  • bluster: to be loud, noisy, or swaggering

Chapter 8: Getting Started

  1. There is gold everywhere, most people are not train to see it
  2. Everything in life is hard, if you don’t have a strong enough reason
    • Find a reason to become reach
    • Choices: choose everyday. Every dollar you spend is a choice. Make good decisions, no impulse. Think of the future. Choose to learn; seminars/
    • keep your mind open
    • Arrogant or critical people are often people with low self esteem who are afraid of taking risks. That’s because if you learn something new, you are then required to make mistakes in order to fully understand what you have learned.
  3. Choose friends carefully.
    • Surround yourself and set up your life so you need less willpower
    • Talk to friends about money, and you’re talking about money because you’re truly curious
  4. Master a formula then learn a new one.
    • Characteristics
      • Learn: openness
      • practice: follow/ take action
      • master: diligence/ consistency
    • learn faster, because what you learn is outdated
  5. Have the self discipline to pay yourself first
    • Learn to manage: CF, people, personal time
    • Don’t cave into spending money
  6. Pay your brokers (professionals) WELL
    • remember to interview your professionals
    • find people that will educate you
    • manage people above you
      • manage and reward people who are smarter than you
      • Companies have board of directors, you should have people smarter than you as well
  7. Ask how fast do I get my money back
    • He puts $$ in stock, then takes the initial money out and leaves the gains in so its like free $$.
      • look at what you can get for free after ROI
  8. Buy with cash! Not debt
    • Just googled it, personal loan are not tax deductible
  9. Choose Heros!
    • Emulate heros: you must study them, in order to emulate them
  10. Teach and you shall receive
    • give what you want FIRST
    • The world is only a mirror of you


  • Dominion: rule, control, domination
  • delineating: to trace the outline of; to portray in words
  • astute: keen penetration or discernment
  • discernment: showing good understanding/ judgement
  • Voracious: craving or consuming large quantities
  • Staunch: firm or steadfast in principle
  • bravado: a pretentious, swaggering display of courage
  • tithing: to give or pay

Chapter 9: To Do’s

  1. Take a break and assess what is working and what isn’t working
    • working:
      • reading is working, but I am all over the place
      • Going to gym/ cooking/ stretching/ chiropractor
      • rewriting your summarys
      • speech
      • taking classes
      • hanging out with friends
      • walking
      • coffee meets bagel
    • Not working
      • Taking bus/train isn’t working: I get no benefits from taking transportation
      • Going on Facebook/ Instagram isn’t working
      • fapping isn’t working
      • watching youtube videos of useless stuff
      • going to play poker
  2. look for new ideas
    • find people and take them to lunch
    • take class, read, seminars
    • make lots of offers
      • sellers are happy with any offers, not because of the $ but because people are interested
      • make offers with escape clauses so the offer is subject to approval of said business partner. And your business aprtner could be a cat
      • Finding good deal, right business, right people, right investors, etc is like dating. Search, offer, reject, negotiate and accept are all part of the process of almost everything in life
  3. Jog, walk, drive a certain area once a month for 10 mins
    • when you’re looking for houses, go to a neighborhood and acquire knowledge of that area to see if there is any real estate to be acquired for cheap. Maybe the neighborhood is up and coming
  4. Profits are made in the buying not in the selling
    • look for bargains in all markets
  5. look in the right places
    • houses in foreclosure auctions
  6. Look for people who want to buy first, then look for those who is selling
    • also think bigger, buy in bulks
  7. buy in volume ( apply this to stocks as well)
  8. Learn from history
    • KFC guy didn’t get rich until after he loss everything in his 60’s
    • Bill Gates was rich by age 330
    • All companies in the exchange started out as small companies
  9. ACT NOW!!!!!!!!

Final thoughts

  • Need mentors
  • 1031 tax deferred exchange
  • portfolio and passive income will make you rich
  • convert your earned income into passive (real estate) and portfolio (stock, paper assets) income
  • Investors who make money aren’t afraid of losing because they know how to protect themselves from loses
  • Risk comes from not knowing what you are doing ~ Warren Buffet

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