Rich Dad Poor Dad Summary

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<p>Page| 1</p><p>www.onepercentclub.net</p><p>Rich Dad Poor Dad is Robert Kiyosaki’s best-selling book about the difference in mindset</p><p>between the poor, middle class, and rich. In this summary, we’ll break down some of the</p><p>best lessons Kiyosaki shares to enhance your Financial Literacy.</p><p>http://www.onepercentclub.net/</p><p>Page| 2</p><p>www.onepercentclub.net</p><p>CONTENTS</p><p>120 Years… 20/20 Hindsight</p><p>Introduction</p><p>Chapter One: Lesson 1: The Rich Don’t Work For Money</p><p>Chapter Two: Lesson 2: Why Teach Financial Literacy?</p><p>Chapter Three: Lesson 3: Mind Your Own Business</p><p>Chapter Four: Lesson 4: The History of Taxes And The Power of Corporations</p><p>Chapter Five: Lesson 5: The Rich Invent Money</p><p>Chapter Six: Lesson 6: Work to Learn – Don’t Work For Money</p><p>Chapter Seven: Overcoming Obstacles</p><p>Chapter Eight: Getting Started</p><p>Chapter Nine: Still Want More? Here Are Some To Do’s</p><p>Final Thoughts</p><p>http://www.onepercentclub.net/</p><p>Page| 3</p><p>www.onepercentclub.net</p><p>20 Years… 20/20 Hindsight</p><p>Rich Dad’s Lesson 1: “The rich don’t work for money.”</p><p>In today’s world, there’s never been a more significant divide between the rich and all other</p><p>income classes. Some economists in California even noticed that about 95% of income gains</p><p>between 2009-2012 went to the wealthiest people in the world– the one percent. Thus,</p><p>showing that the biggest increases in income go to entrepreneurs and investors– not</p><p>employees.</p><p>Rich Dad Lesson: “Savers are losers.”</p><p>The emphasis on saving is only found in the poor and middle class. However, the reason</p><p>why savers are losers is that since 2000 there have been three massive stock market</p><p>crashes.</p><p>1. Dotcom Crash: 2000.</p><p>2. Real Estate Crash: 2007</p><p>3. Banking Crash: 2008</p><p>The first three crashes of the 21st century pale in comparison to the great crash of 1929.</p><p>When you look at the data visually, you can see how big of an impact the crashes were.</p><p>Notably, after each stock market crash, the American government and the Federal Reserve</p><p>Bank started “printing money.”</p><p>http://www.onepercentclub.net/</p><p>Page| 4</p><p>www.onepercentclub.net</p><p>Today’s interest rates are relatively close to zero, which is what makes savers losers. And</p><p>the biggest savers are the poor and middle class.</p><p>Rich Dad Lesson: “Your house is not an asset.”</p><p>When Robert Kiyosaki first published Rich Dad, Poor Dad in 1997, every publisher who had</p><p>rejected his book had criticized the lesson regarding a person’s house not being an asset.</p><p>Historically, people believed that your home was the biggest investment you can make.</p><p>However, it wasn’t until 2007 when “subprime borrowers began to default on their</p><p>subprime mortgages,” that people realized that a house wasn’t an asset.</p><p>The real estate crash was caused by the rich, not the poor. “The rich created financially-</p><p>engineered products known as derivatives.” Even Warren Buffett hated these, calling them</p><p>“weapons of mass financial destruction.” The derivatives were the cause of the housing</p><p>market collapse. Yet, somehow, the poor were blamed even though there were</p><p>approximately $700 trillion in financial derivatives. Believe it or not, but that number has</p><p>since exploded to $1.2 quadrillion in financial derivatives.</p><p>Rich Dad Lesson: “Why the rich pay less in taxes.”</p><p>Poor people often get angry when they learn that rich people pay less in taxes. Instead,</p><p>they should focus on learning from the rich as they pay fewer taxes legally.</p><p>The poor and middle class will always pay more taxes than the rich. This statement is true</p><p>because it’ll always be the person who works for money who gets taxed the most.</p><p>When presidents promise to raise taxes on the rich, they typically mean the middle class.</p><p>Not the real rich.</p><p>http://www.onepercentclub.net/</p><p>Page| 5</p><p>www.onepercentclub.net</p><p>Introduction</p><p>Robert Kiyosaki had two fathers: a rich one and a poor one. One was highly educated with a</p><p>Ph.D. and so intelligent he completed his undergraduate degree in only two years. The</p><p>other father didn’t even finish the eighth grade. While both men worked hard, were</p><p>successful, and earned a lot of money, there was always one who struggled with money.</p><p>And the other dad, well, he became one of the richest people in Hawaii.</p><p>By having two dads, with entirely different mindsets, Kiyosaki found himself comparing the</p><p>two dads a lot. It was hard to figure out which dad he should listen to. Neither had found</p><p>success yet. And both were experiencing financial struggles as they were still early in their</p><p>careers.</p><p>Schools don’t provide financial education. Thus, causing the poor and middle class to be in</p><p>debt. If millions of people need financial or medical assistance, Medicare and Social Security</p><p>may run out.</p><p>Transitioning from the mindset of “I can’t afford it” to “How can I afford it?” forces you to</p><p>think instead of letting yourself off the hook.</p><p>Poor Dad: The rich should pay more in taxes</p><p>Rich Dad: Taxes reward those who produce</p><p>Poor Dad: Study hard so you can find a good company to work for</p><p>Rich Dad: Study hard so you can find a good company to buy</p><p>http://www.onepercentclub.net/</p><p>Page| 6</p><p>www.onepercentclub.net</p><p>Poor Dad: I’m not rich because I have children</p><p>Rich Dad: I must become rich because I have children</p><p>Poor Dad: Don’t talk about money over dinner</p><p>Rich Dad: Talk about money and business over dinner</p><p>Poor Dad: “Don’t take risks.”</p><p>Rich Dad: “Learn to manage risk.”</p><p>Poor Dad: A house is the biggest asset you own</p><p>Rich Dad: A house is a liability</p><p>Poor Dad: Pay your bills first</p><p>Rich Dad: Pay your bills last</p><p>Poor Dad: struggles to save a few dollars</p><p>Rich Dad: creates investments</p><p>Poor Dad: teaches how to write a strong resume</p><p>Rich Dad: teaches how to write a strong business and financial plan</p><p>Poor Dad: “I’ll never be rich.”</p><p>Rich Dad: “I’m a rich man, and rich people don’t do this.”</p><p>http://www.onepercentclub.net/</p><p>Page| 7</p><p>www.onepercentclub.net</p><p>Chapter One:</p><p>Lesson 1: The Rich Don’t Work For Money</p><p>“The poor and middle-class work for money. The rich have money work for them.”</p><p>Growing up, Robert Kiyosaki went to the same school as the rich kids, simply because he</p><p>lived on a different side of the street. Being poor, in a school filled with affluent students,</p><p>made him seek an answer to the question, “how do I make money?”</p><p>His best friend Mike was also poor, and so a friendship was struck between the two. The</p><p>two spent an entire morning one Saturday brainstorming all the ways they could make</p><p>money. Their first project wasn’t a success, nor was it legal. They decided to cast nickels out</p><p>of lead to make money– literally. With a quick explanation of the laws</p><p>of counterfeiting from Robert Kiyosaki’s poor dad, the pair went back to the drawing</p><p>board.</p><p>Robert Kiyosaki’s poor dad suggested that the two learn how to make money from Mike’s</p><p>dad (Robert Kiyosaki’s rich dad). Poor dad had heard from his banker how good the rich dad</p><p>is at making money. Mike arranged a meeting time, and the two began their lessons.</p><p>Robert Kiyosaki arrived at 8 o’clock sharp for his meeting with Mike’s dad. When the</p><p>meeting began, the rich dad told the two that he’d be happy to teach them but won’t be</p><p>doing it in a classroom style. He proposed that the two boys work for him so that he can</p><p>teach them faster.</p><p>The two weren’t allowed to ask questions about the deal. And so, the</p><p>first lesson was learned: opportunities are fleeting, so you need to jump on them when they</p><p>arrive. He offered to pay Robert and Mike 10 cents an hour, for three hours, every</p><p>Saturday.</p><p>http://www.onepercentclub.net/</p><p>Page| 8</p><p>www.onepercentclub.net</p><p>After a couple of weeks doing extremely boring work, Robert told Mike that he wanted to</p><p>quit. This response is what Mike’s dad was hoping for.</p><p>Before his meeting with his rich dad, Robert Kiyosaki’s poor dad told him to demand what</p><p>he deserves at least 25 cents an hour and to quit his job immediately if he didn’t get a raise.</p><p>Robert went to meet with his rich dad but was forced to wait 60 minutes longer than</p><p>expected, which infuriated him. Robert felt that his rich dad hadn’t kept his end of the</p><p>bargain of teaching him and that he was just trying to exploit him by making him work for</p><p>him.</p><p>His rich dad noticed that Robert had sounded like his employees after only one month. Rich</p><p>dad insisted that he was teaching Robert, but in a way that life teaches, not in the way that</p><p>school does. The most effective way to learn is by doing, though most people consume</p><p>education from books, which is the least effective way.</p><p>The main lesson he taught in the office that day was that Robert could either end up like his</p><p>employees who blame others for his problems, or he could take another path and become</p><p>a wealthy man.</p><p>Rich dad had suggested that the two boys find a new way to make money outside of</p><p>working for someone else.</p><p>Lesson 1: “The poor and middle-class work for money. The rich have money work for them.”</p><p>Rich dad also shared how happy he was that Robert Kiyosaki got angry. He said, “anger is a</p><p>big part of the formula, for passion is anger and love combined.” Fear is what controls</p><p>employees that causes them to exploit themselves.</p><p>http://www.onepercentclub.net/</p><p>Page| 9</p><p>www.onepercentclub.net</p><p>Rich dad continued, “…it’s fear that keeps most people working at a job: the fear of not</p><p>paying their bills, the fear of being fired, the fear of not having enough money, and the fear</p><p>of starting over.”</p><p>Employees often feel disappointed looking at their paychecks– especially after tax and</p><p>deductions. This was nine-year-old Robert’s first introduction to taxes. It’s also how he</p><p>learned that the rich don’t let the government do that to them, even though they earn</p><p>more.</p><p>In a new deal, rich dad negotiated that Robert continues working for him, but for free. For</p><p>the next three weeks, Robert and Mike worked for their rich dad for free. Then, on the third</p><p>Saturday, he took them out to a park for some ice cream. He decided to introduce him to</p><p>the trap of the rat race. He did this by offering to pay them twenty-five cents an hour. They</p><p>declined. Rich Dad then offered a dollar an hour. They declined. Then, two dollars an hour.</p><p>They declined. Then, five dollars an hour. And they once again declined. The boys knew that</p><p>they couldn’t be bought. They were committed to becoming wealthy.</p><p>Rich dad later pointed out that poor people often say they’re not interested in money.</p><p>Robert Kiyosaki thought back to the times his dad would say, “I’m not interested in money.</p><p>I work because I love my job.” This is how poor people often cover themselves up.</p><p>It’s essential to not give in to your emotions, such as fear, so that you can prevent any quick</p><p>reactions and think objectively about a situation. The reality is a job is merely a short-term</p><p>solution to a long-term problem. Rich dad’s focus was on teaching the boys how to have a</p><p>choice of thoughts instead of a knee-jerk reaction to things.</p><p>One of the most empowering lessons rich dad taught in this section of Rich Dad Poor Dad</p><p>was to “keep using your brain, work for free, soon your mind will show you ways of making</p><p>money far beyond what I could ever pay you. You will see things that other people never</p><p>see. Most people never see these opportunities because they’re looking for money and</p><p>security, so that’s all they get.”</p><p>http://www.onepercentclub.net/</p><p>Page| 10</p><p>www.onepercentclub.net</p><p>This lesson inspired the two boys to find a new way to make money. On one Saturday, they</p><p>noticed Mrs. Martin cutting off the cover of the comic books and throwing them into a</p><p>cardboard box. Since they weren’t allowed to resell the comic books, they decided to create</p><p>a library for a fee where other kids could come over to read as many comic books as they</p><p>like between 2:30 p.m. and 4:30 p.m. every day after school for only 10 cents. This deal was</p><p>a bargain for the other kids who might’ve spent 10 cents buying a comic book. Each week,</p><p>they averaged around $9.50, while paying Mike’s sister one dollar a week to manage the</p><p>library. After three months, a fight broke out in the library, and Mike’s dad advised them to</p><p>shut down the business. But they did manage to learn how to make money work for them</p><p>instead of working for money.</p><p>http://www.onepercentclub.net/</p><p>Page| 11</p><p>www.onepercentclub.net</p><p>Chapter Two:</p><p>Lesson 2: Why Teach Financial Literacy?</p><p>“It’s not how much money you make. It’s how much money you keep.”</p><p>Robert Kiyosaki retired at the age of 47. He still works, but for him and his wife, Kim,</p><p>working is an option as their wealth will continue to grow automatically.</p><p>In this section of Rich Dad, Poor Dad, Robert Kiyosaki shares a simple story. In 1923, the</p><p>greatest leaders and richest businessmen joined together for a meeting in Chicago. Twenty-</p><p>five years later, nine of them had their life end in the following ways:</p><p>• Four died broke</p><p>• One went insane</p><p>• Two were released from prison</p><p>• Two committed suicide</p><p>This unfortunate turn was likely due to their lives being drastically affected by the 1929</p><p>stock market crash and the Great Depression.</p><p>The biggest financial lesson to learn is that it’s all about how much money you keep, not</p><p>how much you make. And without financial literacy, you’ll lose your money soon.</p><p>Growing up, poor dad recommended that Robert read books while rich dad recommended</p><p>that Robert master financial literacy. Robert shares, “If you are going to build the Empire</p><p>State Building, the first thing you need to do is dig a deep hole and pour a strong</p><p>foundation. If you are going to build a home in the suburbs, all you need to do is pour a six-</p><p>inch slab of concrete. Most people, in their drive to get rich, are trying to build an Empire</p><p>State Building on a six-inch slab.”</p><p>http://www.onepercentclub.net/</p><p>Page| 12</p><p>www.onepercentclub.net</p><p>It’s vital to learn the subject of accounting if your long-term goal is to be rich – no matter</p><p>how boring you think the topic is.</p><p>Rule #1: You must know the difference between an asset and a liability– and buy assets.</p><p>“Rich people acquire assets. The poor and middle class acquire liabilities they think are</p><p>assets,” rich dad says.</p><p>The biggest challenge poor people have is knowing the difference between an asset and a</p><p>liability. Knowing the difference between the two can help you become rich.</p><p>So, what’s the difference?</p><p>An asset puts money into your pocket. A liability takes money out of your pocket.</p><p>Assets add to your income. Liabilities add to your expenses. And the job of a poor person</p><p>pays you an income that then covers your expenses. The job of a middle-class person pays</p><p>you an income then pays down liabilities then</p><p>pays expenses. However, for a rich person,</p><p>their assets pay them an income. For example, their assets may give them rental income,</p><p>dividends, interest, or royalties.</p><p>Here are a few examples of liabilities that the middle class own:</p><p>• Mortgage</p><p>• Car loans</p><p>• Credit card debt</p><p>• School loans</p><p>Here are a few examples of assets that rich people own:</p><p>• Real estate</p><p>• Stocks</p><p>• Bonds</p><p>• Notes</p><p>• Intellectual property</p><p>Many people who are poor or in the middle class often say, “I’m in debt, so I need to make</p><p>more money.” However, getting money isn’t a problem. It’s the lack of financial literacy</p><p>that’s the problem. So, if they simply had more money, the problem might become worse.</p><p>That’s why when people win the lottery or get a pay raise, they usually end up back in the</p><p>same financial situation as they did before. If a person spends all they have, the pattern will</p><p>continue every time they make money.</p><p>Professional success isn’t directly tied to academic success anymore. Most students leave</p><p>their schools with limited financial literacy. Later in life, they find themselves struggling</p><p>financially. What they need to know more than how to make money is how to manage their</p><p>money. This skill is called financial aptitude. Most people learned how to work hard instead</p><p>of how to make money work hard for them.</p><p>http://www.onepercentclub.net/</p><p>Page| 13</p><p>www.onepercentclub.net</p><p>Taxes end up costing the poor and middle class in the long run. People often buy bigger</p><p>homes to grow a family, and property tax rises. People’s salaries increase over time, and so</p><p>social security tax also sees a rise. And before long, their liabilities column is filled up with a</p><p>mortgage and credit-card debt. Thus, trapping them in the rat race.</p><p>The secret to knowing how to make money is simply about creating assets instead of</p><p>liabilities.</p><p>Golden Rule: “He who has the gold makes the rules.”</p><p>“Most financial problems are caused by trying to keep up with the Joneses.” You might</p><p>choose to buy a bigger house, work harder, or get a promotion or pay raise.</p><p>As teenagers, Mike and Robert would work with their rich dad. They studied how he held</p><p>meetings with his bankers, attorneys, accountants, investors, so forth. Even though his rich</p><p>dad had left school at 13, he was now directing some very educated people.</p><p>Rich dad regularly told the two teens, “An intelligent person hires people who are more</p><p>intelligent than he is.”</p><p>As a teenager, Robert realized he had more financial literacy than his poor dad as he was</p><p>able to keep books and spent a lot of time listening to bankers, tax accountants, real estate</p><p>brokers, and others like them.</p><p>In this section of Rich Dad Poor Dad, Robert Kiyosaki shares that many people view their</p><p>home as an asset. However, in many cases, the value of a home doesn’t always go up.</p><p>Sometimes people buy million-dollar houses that would sell for far less. Retirees such as</p><p>Kim’s parents had a strain on their budget when their property taxes increased to $1,000 a</p><p>month.</p><p>http://www.onepercentclub.net/</p><p>Page| 14</p><p>www.onepercentclub.net</p><p>When Robert plans on buying a bigger house, he “first buys assets that will generate the</p><p>cash flow to pay for the house.” He shares that as you continue to grow your asset column,</p><p>over time, you’ll also see the growth of your income. And that’s why the rich keep getting</p><p>richer– however, the reason why the middle-class struggles are because taxes increase as</p><p>their salaries increase.</p><p>Employees work for three key groups:</p><p>• Company: Making the owners and shareholders rich</p><p>• Government: Possibly 100% of the work you do from January until May goes towards</p><p>taxes</p><p>• Bank: Your biggest expenses are your mortgage and credit card debt</p><p>“Wealth is a person’s ability to survive so many days forward without working– or, if I</p><p>stopped working today, how long could I survive?”</p><p>For example, if a person has $1,000 a month in cash flow from their asset column and they</p><p>have monthly expenses of $2,000 a month, they will only be wealthy once they have $2,000</p><p>a month of cash flow to their asset column.</p><p>The average American only has less than $400 in savings, with an astounding 34% with</p><p>none at all.</p><p>So, to sum up:</p><p>• “The rich buy assets.</p><p>• The poor only have expenses.</p><p>• The middle class buy liabilities they think are assets.”</p><p>http://www.onepercentclub.net/</p><p>Page| 15</p><p>www.onepercentclub.net</p><p>Chapter Three:</p><p>Lesson 3: Mind Your Own Business</p><p>“The rich focus on their asset columns while everyone else focuses on their income</p><p>statements.”</p><p>While most people assume that Ray Kroc, the founder of McDonald’s, is in the hamburger</p><p>business, Kroc once told an MBA class that he’s actually in the real estate business. That’s</p><p>why he carefully chose every location for his franchises. Today, McDonald’s owns more real</p><p>estate than any other organization in the world – even the Catholic church.</p><p>When someone asks the average person, “What is your business?” they typically respond</p><p>with their profession. However, they are not owners of the company they work for. They</p><p>still need their own business. Otherwise, they’ll spend their life working for everyone but</p><p>themselves. That’s the importance of minding your own business.</p><p>Financial hardship comes from spending your life putting money into someone else’s</p><p>pocket instead of your own. But by working for others, they’ll be dependent on pay raises,</p><p>getting second jobs, or working overtime.</p><p>Without a financial foundation, you’ll be stuck to your job and its security for the rest of</p><p>your life.</p><p>However, it’s important to note that entrepreneurship can be a tricky path. In one instance,</p><p>Robert Kiyosaki tried to get a loan. The loan committee saw that he owned a lot of real</p><p>estate properties. However, they struggled to understand why he didn’t have a salary or a 9</p><p>to 5 job. Even though, at the time, he did own many assets such as Armani suits, art, golf</p><p>clubs, and of course, property.</p><p>It’s also good to note that as you sell your assets, the government taxes you on the gains.</p><p>Robert recommends to “keep your expenses low, reduce liabilities, and diligently build a</p><p>base of solid assets.” If you have children, advise them to build assets before they move out</p><p>or fall into the trap of the rat race.</p><p>Here are a few more assets that Robert recommends that you or your children acquire:</p><p>• “Businesses that do not require my presence. I own them, but they are not managed</p><p>or run by other people. If I have to work there, it’s not a business. It becomes my job.</p><p>• Stocks</p><p>• Bonds</p><p>• Income-generating real estate</p><p>• Notes (IOUs)</p><p>• Royalties from intellectual property such as music, scripts, and patents</p><p>• Anything else that has value, produces income, or appreciates, and has a ready</p><p>market”</p><p>http://www.onepercentclub.net/</p><p>Page| 16</p><p>www.onepercentclub.net</p><p>Rich dad used to say, “If you don’t love it, you won’t take care of it.”</p><p>You can keep your day job, but you should also start buying assets like those listed above.</p><p>Since 90% of companies fail, Robert Kiyosaki’s goal is to sell the entire stock of a company</p><p>within a year of going public.</p><p>To become rich, you’ll need to buy luxuries last. People who buy luxuries first are often in</p><p>much debt. The aim is to build income-generating assets that can buy luxuries.</p><p>http://www.onepercentclub.net/</p><p>Page| 17</p><p>www.onepercentclub.net</p><p>Chapter Four:</p><p>Lesson 4: The History of Taxes And The Power of Corporations</p><p>“My rich dad just played the game smart, and he did it through corporations– the biggest</p><p>secret of the rich.”</p><p>The poor often say, “‘Why don’t the rich pay for it?’ or ‘The rich should pay more in taxes</p><p>and give it to the poor.’” However, the real rich never pay taxes. The people who pay taxes</p><p>are the educated, middle class.</p><p>While poor dad knew the history of education, rich dad knew the history of taxes. Taxes</p><p>originated in England and America temporarily to pay for wars. It wasn’t until 1874 when</p><p>England permanently added income taxes as a requirement of its citizens. It started in 1913</p><p>for Americans. An interesting tidbit about taxes is that it was initially only for the rich to</p><p>pay. That’s what governments told the poor and middle class to help get them on board</p><p>with the idea. That was how it got voted into law in the first place.</p><p>Poor dad: paid to spend money and hire people; government gains respect the bigger it</p><p>gets</p><p>Rich dad: gains respect of investor by spending and hiring less</p><p>Poor dad: the rich are ‘greedy crooks’</p><p>Rich dad: the government are ‘lazy thieves’</p><p>The rich don’t get taxed as tax laws help them to create jobs and provide housing. Thus, the</p><p>government is dependent on the middle class for their tax revenue.</p><p>The rich put their money into a corporation. Their asset puts income into their corporation,</p><p>and then corporate income can be used as income for their personal income statement.</p><p>And the expenses from their personal income statement can go into the expenses for the</p><p>corporation. Even though the masses continuously try to find ways to tax the rich, the rich</p><p>consistently outsmart them.</p><p>Something to remember about the government is that if they don’t spend their allotted</p><p>funds, they’ll risk losing money when the next budget is announced. They aren’t rewarded</p><p>for being efficient spenders. Yet, entrepreneurs are rewarded for financial efficiency. The</p><p>mindsets between the two are polar opposite.</p><p>http://www.onepercentclub.net/</p><p>Page| 18</p><p>www.onepercentclub.net</p><p>The rich look for legal loopholes to avoid paying taxes. That’s why they often hire the</p><p>smartest accountants and attorneys.</p><p>In real estate, Robert Kiyosaki uses one of these legal loopholes as well. There’s a section</p><p>called 1031 in the Internal Revenue Code that allows a seller to delay the payment of taxes</p><p>in w when they sell real estate provided that they buy a more expensive piece of real</p><p>estate. Thus, by consistently trading up, he delays getting taxed until the time comes to</p><p>liquidate. This strategy also allows him to continue building his asset column.</p><p>Knowing the law can help save you money (while also making sure you follow it).</p><p>Poor dad: climb the corporate ladder</p><p>Rich dad: own the corporate ladder</p><p>When Robert was in his mid-twenties working for Xerox, he realized how disappointing it</p><p>was to look at his paycheck. His bosses would talk to him about promotions and pay raises.</p><p>However, that only made him see his deductions rise too. He could see himself becoming</p><p>his poor dad. This realization is what made him realize he needed to follow his rich dad’s</p><p>path. So, Robert turned to minding his business by building out his asset column so he could</p><p>invest in Hawaii’s real estate market. This newfound motivation made him work harder at</p><p>selling Xerox machines at work. He knew he was building something bigger than himself.</p><p>After three years of hard work, his real estate business was making more than he was at</p><p>Xerox. His company bought him his first Porsche. His coworkers had no idea that he wasn’t</p><p>spending his commissions on the Porsche but assets.</p><p>Financial IQ is made up of four key areas:</p><p>1) Accounting: ability to read numbers</p><p>2) Investing: the concept of money making money</p><p>3) Understanding markets: knowing supply and demand</p><p>4) The law: knowing the tax advantages and protections your corporation can provide</p><p>• Tax advantages: corporations can pay expenses before taxes, which employees</p><p>can’t do. A corporation can spend everything it can and be taxed only on</p><p>everything left over. You can expense car payments, insurance, repairs, health</p><p>club memberships, and most restaurant meals.</p><p>• Protection from lawsuits: The rich use corporations to protect their assets from</p><p>creditors, whereas the poor and middle class try to own everything</p><p>themselves.</p><p>Business Owners with Corporations</p><p>1. Earn</p><p>2. Spend</p><p>3. Pay Taxes</p><p>Employees Who Work for Corporations</p><p>1. Pay Taxes</p><p>2. Earn</p><p>3. Spend</p><p>http://www.onepercentclub.net/</p><p>Page| 19</p><p>www.onepercentclub.net</p><p>Chapter Five:</p><p>Lesson 5: The Rich Invent Money</p><p>“Often in the real world, it’s not the smart who get ahead, but the bold.”</p><p>When companies downsize, employees often blame the owners for being unfair. In a news</p><p>story he saw, Robert Kiyosaki shares, “A terminated manager of about 45 years of age had</p><p>his wife and two babies at the plant and was begging the guards to let him talk to the</p><p>owners to ask if they would reconsider his termination. He had just bought a house and was</p><p>afraid of losing it.” Inside of us is both someone brave and someone who will get on their</p><p>knees and beg.</p><p>However, when we’re so afraid that we start doubting ourselves, we fail to push forward.</p><p>Instead, it’s the bold who get ahead.</p><p>Aim to convert your fear into power.</p><p>The result of gaining financial literacy and taking risks is “having more options.”</p><p>In the future, we’ll be seeing a rise in successful companies being created but also a surge in</p><p>companies failing– downsizing and laying off employees. It’s better to be making millions</p><p>from the assets you build than aiming to get a raise. This period is a great era to be building</p><p>assets.</p><p>Wealth over the years</p><p>• 300 years ago: the person who owns land</p><p>• Later: the person who owns factories and production</p><p>• Today: the person with the timeliest information</p><p>“The players who get out of the Rat Race the quickest are the people who understand</p><p>numbers and have creative financial minds.”</p><p>http://www.onepercentclub.net/</p><p>Page| 20</p><p>www.onepercentclub.net</p><p>It is possible to have the money yet still struggle to move ahead financially.</p><p>Some people have a great opportunity present itself only to fail to have enough money to</p><p>take advantage of it. Others have a fantastic opportunity present itself only to lack the</p><p>ability to recognize that it’s a great opportunity (and they may even have the money to take</p><p>advantage).</p><p>The strategy of the average person is: “Work hard, save, and borrow.” But instead of</p><p>working hard, they should aim to improve their financial intelligence so that they can make</p><p>more money. The people who get rich the fastest are those who realize that money isn’t</p><p>real.</p><p>“The single most powerful asset we all have is our mind. If it is trained well, it can create</p><p>enormous wealth.”</p><p>Today, savers are considered losers. The reason for this is because interest rates have never</p><p>been lower. Plus, banks now charge you for holding your money.</p><p>During the stock market crash, Robert Kiyosaki was short of cash as he had his money in the</p><p>stock market and apartment houses. However, he knew this was the time to buy. He and</p><p>his wife had about a million dollars to invest in some amazing deals. He decided to shop for</p><p>houses at the bankruptcy attorney’s office. He asked a friend for a $2,000 loan with a return</p><p>of $200, so he could buy a $20,000 home that was worth about $75,000. He then ran an ad</p><p>promoting the house for $60,000. It sold within minutes. He asked for a $2,500 processing</p><p>fee. Thus, giving his friend his money</p><p>back without using any of his own money. Thus,</p><p>earning him a profit of $40,000 with a promissory note. The whole process took him five</p><p>hours.</p><p>At the time Rich Dad Poor Dad was published, there had been three stock market crashes in</p><p>30 years.</p><p>• 1989-1990: real estate</p><p>• 2001-2002: dot-com bubble burst</p><p>• 2008-2009: housing bubble burst</p><p>All of these stock market crashes were investment opportunities.</p><p>Which one sounds harder?</p><p>1. “Work hard. Pay 50% in taxes. Save what is left. Your savings earn 5%, which is also</p><p>taxed. OR</p><p>2. Take the time to develop your financial intelligence. Harness the power of your brain</p><p>and asset column.”</p><p>Most of Robert Kiyosaki’s financial growth comes from real estate and small-cap stocks.</p><p>“The problem with ‘secure’ investments is that they are often sanitized, that is, made so</p><p>safe that the gains are less.”</p><p>http://www.onepercentclub.net/</p><p>Page| 21</p><p>www.onepercentclub.net</p><p>In one example, Robert Kiyosaki paid $45,000 on the house worth $65,000 that the owner</p><p>was struggling to sell. The first year he rented it out to a local professor. And after</p><p>expenses, he nets $40 a month. However, a year later, when the market picked back up, he</p><p>sold it for $95,000. Since he had used the money to buy a bigger property, a 12-unit</p><p>apartment, he was able to defer the payment of capital gains. He spent $300,000 on the</p><p>apartment. And only two short years later sold it for $495,000 and bought a 30-unit</p><p>apartment building with a cash flow of $5,000 a month. A few years later, he sold it for $1.2</p><p>million.</p><p>The best deals aren’t usually offered to newcomers. They’re often reserved for the rich. But</p><p>the more sophisticated you get at the game, the more opportunities you’ll be presented</p><p>with. Most of Robert Kiyosaki’s millions started with as little as $5,000 or $10,000</p><p>investments.</p><p>In the past, Robert has bought 100,000 shares at 25 cents a share before a company goes</p><p>public. Then, the company goes public, and whether it’s $2 each or if it flies to $20, you can</p><p>sometimes make a million dollars in less than a year.</p><p>“It’s not gambling if you know what you’re doing. It’s gambling if you’re just throwing</p><p>money into a deal and praying.”</p><p>Robert Kiyosaki shares, “Most people never win because they’re more afraid of losing. That</p><p>is why I found school so silly. In school, we learn that mistakes are bad, and we are</p><p>punished for making them. Yet if you look at the way humans are designed to learn, we</p><p>learn by making mistakes. We learn to walk by falling down. If we never fell down, we</p><p>would never walk.”</p><p>People’s fear of losing causes them to not be rich. “People who avoid failure also avoid</p><p>success.”</p><p>Three skills of an investor:</p><p>1. Find an opportunity that everyone else missed: see with your mind instead of your eyes</p><p>2. Raise money: know how to raise capital outside of a bank</p><p>3. Organize smart people: hire people more intelligent than you</p><p>http://www.onepercentclub.net/</p><p>Page| 22</p><p>www.onepercentclub.net</p><p>Chapter Six:</p><p>Lesson 6: Work to Learn – Don’t Work For Money</p><p>“Job security meant everything to my educated dad. Learning meant everything to my rich</p><p>dad.”</p><p>During an interview with a journalist, Robert Kiyosaki learned that the journalist strived to</p><p>become a best-selling author. He realized she was a great writer and that she should pursue</p><p>that. She told him that she had tried, but no one was interested. He accidentally offended</p><p>her when he told her to take a sales course so she could promote herself. She became</p><p>defensive.</p><p>She replied, “I have a master’s degree in English literature. Why would I go to school to</p><p>learn to be a salesperson? I am a professional. I went to school to be trained in a</p><p>profession, so I would not have to be a salesperson. I hate salespeople. All they want is</p><p>money.” She packed her things. Robert Kiyosaki gently pointed out that he was the best-</p><p>selling author, not the best-writing author. This statement only infuriated her more, and</p><p>the interview ended.</p><p>The world has many successful and talented people: doctors, lawyers, dentists. And still,</p><p>they struggle financially. But as a wise business consultant once said, “They are one skill</p><p>away from great wealth.” If you took your skillset and paired it with financial intelligence,</p><p>accounting, investing, marketing, or law, you could achieve great wealth.</p><p>If that journalist had instead picked up a job at an ad agency to learn how to sell, she could</p><p>go on to create great wealth with her writing.</p><p>http://www.onepercentclub.net/</p><p>Page| 23</p><p>www.onepercentclub.net</p><p>Rich dad says, “You want to know a little bit about a lot.” In school and at work, you’re</p><p>expected to specialize. Those who earn promotions tend to be specialists. However, Robert</p><p>Kiyosaki’s rich dad always recommended the opposite. That’s why, throughout the years,</p><p>Robert would work in different areas of his rich dad’s company. He was expected to attend</p><p>meetings with lawyers, bankers, accountants. It was essential to the rich dad for Robert to</p><p>know every aspect of creating an empire.</p><p>When Robert Kiyosaki had quit his high-paying job, his poor dad had a heart-to-heart talk</p><p>with him, failing to understand his mindset for quitting.</p><p>Poor dad: values job security</p><p>Rich dad: values learning</p><p>Poor dad: assumed Robert went to school to learn how to be a ship’s officer</p><p>Rich dad: knew Robert went there to study international trade</p><p>The reason Robert had quit his job was so that he could learn how to lead people as his rich</p><p>dad said, “If you’re not a good leader, you’ll get shot in the back, just like they do in</p><p>business.”</p><p>“Job is an acronym for ‘Just Over Broke.’”</p><p>Robert Kiyosaki recommends taking on jobs where you can learn new skills instead of jobs</p><p>that pay the most.</p><p>The biggest fear for aging Americans is running out of money before they die. When you</p><p>add up health costs and long-term nursing home care, it’s quite likely that the average</p><p>American will run out of money during their retirement.</p><p>“Are workers looking into the future or just until their next paycheck, never questioning</p><p>where they are headed?”</p><p>The best advice Robert Kiyosaki has for those looking to earn more money is to pick up a</p><p>second job that’ll teach them a second skill.</p><p>It’s normal to feel a bit of resistance to that idea; you might not be excited to do something</p><p>you aren’t passionate about. But remember, you go to the gym not because you want to</p><p>but because you want to be healthy and live a long life.</p><p>Robert shares the story of an artist in Hawaii who inherited $35,000. He used the money to</p><p>run ads in an expensive magazine that targeted the rich. However, not a single person</p><p>reached out. He lost his entire savings. The artist is now trying to sue the magazine for</p><p>misrepresentation. However, the reality is that he didn’t have any advertising experience.</p><p>When Robert asked this artist if he’d be interested in taking a course, he said, “I don’t have</p><p>http://www.onepercentclub.net/</p><p>Page| 24</p><p>www.onepercentclub.net</p><p>the time, and I don’t want to waste my money.” Most people focus on improving their</p><p>product rather than learning how to sell it.</p><p>Management Skills Needed for Success:</p><p>1. Management of cash flow</p><p>2. Management of systems</p><p>3. Management of people</p><p>“The most important specialized skills are sales and marketing.”</p><p>Robert Kiyosaki’s friend Blair Singer shares, “Sales = Income. Your ability to sell– to</p><p>communicate and position your strengths– directly impacts your success.”</p><p>Most people fear rejection, which is why they’re often intimidated</p><p>by sales and marketing.</p><p>Law of Money: “Give, and you shall receive.”</p><p>Robert shares, “In conclusion, I became both dads. One part of me is a hard-core capitalist</p><p>who loves the game of making money. The other part is a socially responsible teacher who</p><p>is deeply concerned with this ever-widening gap between the haves and the have-nots. I</p><p>personally hold the archaic education system primarily responsible for this growing gap.”</p><p>http://www.onepercentclub.net/</p><p>Page| 25</p><p>www.onepercentclub.net</p><p>Chapter Seven:</p><p>Overcoming Obstacles</p><p>“The primary difference between a rich person and a poor person is how they manage</p><p>fear.”</p><p>There are five core reasons why even the financially literate don’t become financially</p><p>independent:</p><p>1. Fear</p><p>2. Cynicism</p><p>3. Laziness</p><p>4. Bad habits</p><p>5. Arrogance</p><p>Not even the rich, like losing money. No one does really. Rich dad says, “Some people are</p><p>terrified of snakes. Some people are terrified of losing money. Both are phobias.” That’s</p><p>why it was so crucial for Robert’s rich dad to teach his two sons how to take risks at a young</p><p>age. The younger you are, the easier it is to become rich.</p><p>Approach risk like a Texan. Texans both win big and lose big. Their attitude is what’s game-</p><p>changing. They feel a sense of pride when they win, but they still brag even if they lose.</p><p>They lack a fear of loss. Their loss inspires them.</p><p>Before you win, you lose. Like all those times you fell off a bicycle before you learned how</p><p>to ride it. Before people became rich, they lost money. Most people are more afraid of the</p><p>pain of losing money than the happiness of becoming rich.</p><p>“Rich dad knew that failure would only make him stronger and smarter.”</p><p>Losers are defeated by loss. Winners are inspired by loss. You can still hate losing without</p><p>being afraid of it.</p><p>Most people invest in low-yield mutual funds because it’s the safe thing to do. But that’s</p><p>not the portfolio of a winner.</p><p>To be successful, you’ll need to be focused, instead of balanced.</p><p>FOCUS: Follow One Course Until Successful</p><p>Don’t let doubt cause you not to act. Avoid remarks from friends and family, such as,</p><p>“‘What makes you think you can do that?’ ‘If it’s such a good idea, how come someone else</p><p>hasn’t done it?’ ‘That will never work. You don’t know what you’re talking about.’”</p><p>Investors know that when it’s a period of doom and gloom, that’s the best time to make</p><p>money.</p><p>http://www.onepercentclub.net/</p><p>Page| 26</p><p>www.onepercentclub.net</p><p>Robert’s friend Richard recently asked him for advice on buying property. The two of them</p><p>identified a two-bedroom townhouse for only $42,000. Others at the time were selling for</p><p>$65,000. He bought it. But after talking to a neighbor, he backed out, thinking he got a bad</p><p>deal. A short few years later, the property was worth $95,000. And Richard’s small</p><p>investment of $5,000 could’ve helped him get out of the Rat Race. Doubt can be a deal</p><p>killer.</p><p>When it comes to financial education, you need to know the difference between good debt</p><p>and bad debt. Analyze instead of criticizing.</p><p>Most people say they’re too busy to focus on their wealth and health, but really they’re</p><p>avoiding it.</p><p>“Rich dad believed the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’</p><p>opens up possibilities, excitement, and dreams.” Instead of buying his kids everything they</p><p>wanted, rich dad asked them to think about how they can afford it. Rich dad never gave</p><p>Robert or Mike anything. The boys had to pay for college on their own.</p><p>The financial struggle often comes from bad habits. You need to pay yourself first.</p><p>Otherwise, you likely won’t be left with anything after paying your bills. That’s because if</p><p>you pay yourself first and fail to have enough money left over for bills, you’ll need to find</p><p>new ways to earn more money. It becomes a motivator – especially when debt collectors</p><p>start calling.</p><p>“What I know makes me money. What I don’t know loses me money.”</p><p>http://www.onepercentclub.net/</p><p>Page| 27</p><p>www.onepercentclub.net</p><p>Chapter Eight: Getting Started</p><p>A gold miner in Peru once told Robert Kiyosaki, “There is gold everywhere. Most people are</p><p>not trained to see it.”</p><p>Robert said this was also true for him in real estate. He said he could find about four to five</p><p>excellent properties a day, whereas others may look and find none.</p><p>10 Steps to Develop Your God-given Powers</p><p>1. Find a reason greater than reality: the power of spirit</p><p>• A young woman who dreamed of going to the Olympics would swim every</p><p>morning for three hours before going to school. She also spent her weekends</p><p>studying to maintain high grades. When asked why, she responded, “I do it for</p><p>myself and the people I love. It’s love that gets me over the hurdles and</p><p>sacrifices.”</p><p>2. Make daily choices: the power of choice</p><p>• With every dollar we receive, we choose whether we become: rich, poor, or</p><p>the middle class. However, you need to train your children to know how to</p><p>manage your assets. Otherwise, they’ll be lost in the next generation.</p><p>• It’s important to learn how to invest before investing.</p><p>3. Choose friends carefully: the power of association</p><p>• You don’t have to choose friends based on their financial statements.</p><p>• Choose friends who talk about money and are interested in the subject.</p><p>• People with money often report that their friends without money never ask</p><p>them how they did it. But they do ask for: a loan or a job.</p><p>4. Master a formula and then learn a new one: the power of learning quickly</p><p>• Study what you want to do. For example, if you want to be a cook, study</p><p>cooking.</p><p>• If you want to make money, don’t work for it.</p><p>• Most people learn but fail the most crucial step: action.</p><p>• It’s not what you know but how fast you learn.</p><p>5. Pay yourself first: the power of self-discipline</p><p>• Without self-discipline, you wouldn’t know how to manage a million dollars if</p><p>you were to receive it.</p><p>http://www.onepercentclub.net/</p><p>Page| 28</p><p>www.onepercentclub.net</p><p>• You’ll only get pushed around in life if you lack self-discipline and internal</p><p>control.</p><p>• Three most important management skills to start your own business:</p><p>• Cash flow</p><p>• People</p><p>• Personal time</p><p>• People who pay themselves first end up using the money to acquire assets that</p><p>pay for their expenses, and then they’re leftover is income. People who pay</p><p>themselves last, lose all their money with expenses.</p><p>• Even if your cash flow is far less than your bills, you need to pay yourself first.</p><p>• Robert Kiyosaki has more liabilities than most of the population, but he uses</p><p>tenants to pay for his debts.</p><p>• Tips for paying yourself first:</p><p>• “Don’t get into large debt positions that you have to pay for. Keep your</p><p>expenses low.”</p><p>• Don’t dip into your savings when pressure builds. Use the pressure to</p><p>find new ways of making more money.</p><p>• Savings need to be used to make more money instead of paying bills.</p><p>6. Pay your brokers well: the power of good advice</p><p>• Pay professionals well and have expensive attorneys, accountants, real estate</p><p>brokers, and stockbrokers. Their services should be making you money. Those</p><p>professionals who make more will also make you more money.</p><p>• Poor people will often tip restaurant servers 15-20 percent even with lousy</p><p>service but get mad when they need to pay a broker three to seven percent.</p><p>• Have a board of directors; it’s essential to have people working for you who</p><p>are smarter than you.</p><p>7. Be an Indian giver: the power of getting something for nothing</p><p>• “The sophisticated</p><p>investor’s first question is: ‘How fast do I get my money</p><p>back?’ They also want to know what they get for free, also called a ‘piece of</p><p>the action.’ That is why the ROI, or return on investment, is so important.’</p><p>• When Robert Kiyosaki wanted to buy a small condominium in foreclosure, he</p><p>submitted a bid $10,000 less than asking. But since he presented a cashier’s</p><p>check with the full amount, the bank knew it was a serious deal and accepted</p><p>it. After three years of renting out the property, Robert Kiyosaki officially owns</p><p>the asset, which continues to make him money.</p><p>http://www.onepercentclub.net/</p><p>Page| 29</p><p>www.onepercentclub.net</p><p>• When you acquire an investment, you should aim to get something free with</p><p>it– for example, a condominium, a piece of land, stock shares, etc.</p><p>• McDonald’s founder, Ray Kroc, wanted the land underneath every McDonald’s</p><p>location for free with every franchise he opened</p><p>8. Use assets to buy luxuries: the power of focus</p><p>• A father wanted to teach his child how to make money. His son had been</p><p>asking for a car but didn’t want him spending his college money on it. His</p><p>father gave him $3,000 that the son could use to buy a vehicle indirectly. So he</p><p>couldn’t use the cash to buy a car. His son started learning how to invest in</p><p>stocks. He read every book, he read publications, and even though he lost</p><p>$2,000 in the stock market, his interest had been piqued.</p><p>• Don’t buy luxuries with liabilities like credit, buy them from your asset column</p><p>• If 100 people got $10,000 at the beginning of the year, by the end:</p><p>• 80 would have spent it all or gone further in debt</p><p>• 16 would’ve increased the amount by 5-10 percent</p><p>• Four would have either doubled it or grew it to the millions</p><p>9. Choose heroes: the power of myth</p><p>• Robert Kiyosaki’s heroes are Warren Buffett, Peter Lynch, George Soros, etc.</p><p>• When Robert Kiyosaki analyzes a deal, he tries to look at it the same way</p><p>Warren Buffett would. This strategy helps him tap into raw genius.</p><p>10. Teach and you shall receive: the power of giving</p><p>• Robert’s rich dad taught him to be charitable. His poor dad taught him to give</p><p>away his time and knowledge, but not money.</p><p>• Rich dad says, “If you want something, you first need to give.”</p><p>• If you want money, give money.</p><p>http://www.onepercentclub.net/</p><p>Page| 30</p><p>www.onepercentclub.net</p><p>Chapter Nine: Still Want More? Here Are Some To Do’s</p><p>Stop doing what you’re doing.</p><p>• If it’s not working, try something new.</p><p>Look for new ideas.</p><p>• Read how-to books with formulas on topics you want to learn more about.</p><p>• Read: The 16 Percent Solution by Joel Moskowitz</p><p>Find someone who has done what you want to do.</p><p>• Find the expert who has done something you want to do and pick their brain so you</p><p>can learn from them.</p><p>Take classes, read, and attend seminars.</p><p>• Many classes are free or low cost, search the internet for them so you can absorb</p><p>more knowledge.</p><p>Make lots of offers.</p><p>• Robert submits offers on multiple real estate properties that he wants. He leaves the</p><p>deal up to the real estate agent, who is the expert, whereas he isn’t.</p><p>• Most sellers ask for too much money, and until there’s a second offer, it’s hard to</p><p>know what the right price is.</p><p>• You’d be surprised at how many people would say yes to an offer.</p><p>Jog, walk, or drive a certain area once a month for ten minutes.</p><p>• You’ll find some of the best real estate investments by driving around. He might talk</p><p>to postal workers, moving truck workers, retailers, and so forth to better understand</p><p>a neighborhood.</p><p>Shop for bargains in all markets.</p><p>• “Profits are made in the buying, not in the selling.”</p><p>Look in the right places.</p><p>• Most people buy with real estate agents. Robert Kiyosaki buys at the foreclosure</p><p>auction.</p><p>Look for people who want to buy first. Then look for someone who wants to sell.</p><p>• When buying property, find a seller first then find a person who’s looking to sell their</p><p>property and buy through them.</p><p>Think big.</p><p>• If your business is buying something in bulk, call some friends up to see if they’re</p><p>looking for that as well. Then, you can negotiate deals for having a large bulk</p><p>purchase, so you get the best deal on what you’re buying.</p><p>Learn from history.</p><p>• “All the big companies on the stock exchange started out as small companies.”</p><p>Action always beats inaction.</p><p>• Act now!</p><p>http://www.onepercentclub.net/</p><p>Page| 31</p><p>www.onepercentclub.net</p><p>Final Thoughts</p><p>Robert’s friend was once trying to save up for his four children’s college educations. But</p><p>with only $12,000. It was clear it wasn’t going to happen any time soon. He advised his</p><p>friend to buy a property in Phoenix since there was a slump in the market. After two weeks,</p><p>they found a three-bedroom, two-bathroom home in a good area. The homeowner was</p><p>desperate to sell. They ended up buying the property for $79,000, even though the owner</p><p>wanted $102,000. His friend needed a down payment of $7,900. Each month after all</p><p>expenses were paid, his friend pocketed $125. He planned to keep the house for 12 years.</p><p>He used his $125 to pay down the mortgage even faster. Three years later, someone</p><p>offered him $156,000 for the house. Robert advised him to sell it using a 1031 tax-deferred</p><p>exchange. Next, he bought a mini-storage facility. After three months, he was making</p><p>$1,000 a month that he put into the college fund. A couple of years later, he sold that mini-</p><p>warehouse for close to $330,000. His next investment made him $3,000 a month in income,</p><p>going back to the college fund. The man now feels confident in his ability to pay for his</p><p>children’s college education. And it all started with only $7,900.</p><p>There are three types of income</p><p>1. Ordinary earned</p><p>2. Portfolio</p><p>3. Passive</p><p>Poor dad: ordinary earned, get a safe and secure job</p><p>Rich dad: portfolio and passive, make money work for you</p><p>“The key to financial freedom and great wealth is a person’s ability to convert earned</p><p>income into passive and/or portfolio income.”</p><p>http://www.onepercentclub.net/</p><p>Page| 32</p><p>www.onepercentclub.net</p><p>Warren Buffett advises that “Risk comes from not knowing what you’re doing.”</p><p>Rich dad would often say, “If you want to be rich, you must know what kind of income to</p><p>work hard for, how to keep it, and how to protect it from loss. That is the key to great</p><p>wealth… If you do not understand the differences in those three incomes and do not learn</p><p>the skills on how to acquire and protect those incomes, you will probably spend your life</p><p>earning less than you could and working harder than you should.”</p><p>Your destiny relies on how you spend your money and your time. Your family’s future will</p><p>be determined by your choices today.</p><p>http://www.onepercentclub.net/</p>