Rich Dad Poor Dad

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Rich Dad Poor Dad by Mind Map: Rich Dad Poor Dad

1. Lesson 1: The rich don't work for money

1.1. The poor and middle class work for money. The rich have money work for them.

1.2. People's are controlled by two emotions: fear and greed.

1.3. Money is in control of their emotions and souls

1.4. Many people are ignorant about money

1.5. See what others miss

1.5.1. Created a comic book library

2. Lesson 2: Why Teach Financial Literacy?

2.1. Rule 1: Know the difference between assets and liabilities and buy assets

2.1.1. Rich people acquire assets, poor/middle class acquire liabilities and think they are assets

2.1.2. An asset puts money in my pocket, a liability takes money out

2.2. Who are you working for?

2.2.1. The company

2.2.2. The bank

2.2.2.1. Mortgage/Credit cards

2.2.3. The government

2.2.3.1. Taxes

3. Lesson 3: Mind Your Own Business

3.1. Start buying assets, not liabilities or personal effects with no real value

3.1.1. Business' that do not require my presence

3.1.2. Stocks

3.1.3. Bonds

3.1.4. Income-generating real estate

3.1.5. Notes (IOUs)

3.1.6. Royalties from IP

3.1.7. Anything that has value, produces income or appreciates, and has a ready market

3.2. Be Active in your asset column

3.2.1. Once a dollar goes into that account, dont let it come out

4. Lesson 4: The History of Taxes and The Power of Corporations

4.1. Knowledge is power

4.1.1. With money comes great power and the right knowledge to keep it and multiply it

4.2. If you work for money, you give power to your employer.

4.2.1. If money works for you, you keep the power and control it.

4.3. The tax man will take more if you let him

4.4. Financial IQ

4.4.1. Accounting

4.4.1.1. Ability to read and understand financial statements

4.4.2. Investing

4.4.2.1. Science of making money from money

4.4.3. Understanding Markets

4.4.3.1. Science of supply and demand

4.4.3.2. Does the investment make sense based on current market conditions?

4.4.4. The Law

4.4.4.1. Tax advantages

4.4.4.1.1. Companies can spend first and pay tax on whats left (opposite to employees)

4.4.4.2. protection from law suits

4.4.4.2.1. Control but not own

5. Lesson 5: The Rich Invent Money

5.1. self doubt and lack of confidence hold us back

5.1.1. inside everyone of us is brave, brilliant and daring

5.1.2. its not the smart that get ahead but the bold

5.2. play Cashflow to increase understanding

5.3. "I don't know how to do that here yet"

5.3.1. Great opportunities are seen with your mind not your eyes

5.3.2. Learn to recognise opportunities

5.4. Professional Investor puts deals together

5.4.1. Find an opportunity everyone else has missed

5.4.2. Raise money

5.4.3. Organise smart people

5.4.3.1. Have great advisors

6. Lesson 6: Work to Learn - Don't work for Money

6.1. Learn to sell

6.1.1. Give books obnoxious titles

6.2. Know a little about a lot

6.3. Learn constantly

6.4. "Workers work just hard enough to not get fired. Owners pay just enough that workers wont quit."

6.5. Management skills for success

6.5.1. Cashflow

6.5.2. Systems

6.5.3. People

6.6. Marketing & Comms

6.6.1. Most important specialised skills

6.6.2. writing, speaking, negotiating

6.6.2.1. Attend courses

6.6.2.2. Can always learn more

6.7. Be Good Learner, seller, marketer and teacher

7. Overcoming Obstacles

7.1. Fear

7.1.1. Pain of losing money greater than the joy of being rich

7.1.1.1. Failure inspires winners. Failure defeats losers.

7.1.2. If you hate losing, play it safe. Start early

7.2. Cynicism

7.2.1. Sky is falling

7.2.1.1. Noise

7.2.1.1.1. Self doubt

7.2.1.1.2. We all hear it

7.2.2. Worst of times are actually the best of times

7.2.3. Watch out for buyers remorse

7.3. Laziness

7.3.1. Too busy to take care of own wealth

7.3.2. A little greed is good

7.3.3. How can I afford it?

7.4. Bad habits

7.4.1. Pay Yourself First

7.5. Arrogance

8. To Do's

8.1. 1. Find a reason greater than reality: the power of spirit

8.1.1. Combination of "wants" and "don't wants"

8.1.2. Need a strong reason or it will seem like too much hard work

8.2. 2. Make daily choices: The power of choice

8.2.1. First invest in education

8.2.1.1. Books, CD's

8.2.1.1.1. Listen to an investor say something i disagree with

8.2.1.1.2. Re-listen and keep an open mind

8.2.1.2. Go to seminars

8.2.1.2.1. Preferably 2 days so can immerse in topic

8.2.2. Every dollar that comes in, we have the power to choose our future

8.3. 3. Choose friends carefully: power of association

8.3.1. Friends with money talk about money, not to brag but because they are interested in it

8.3.2. Ask someone who has been success how they did it

8.4. 4. Master a formula and then learn a new one: the power of learning quickly

8.4.1. You become what you study

8.4.1.1. Search for a faster formula

8.5. 5. Pay yourself first: the power of self-discipline

8.5.1. Don't get into large debt positions that you have to pay for. Keep your expenses low

8.5.1.1. Build up assets before you buy car etc

8.5.2. When you come up short, let the pressure build and don't dip into savings or investments

8.5.2.1. Use the pressure to inspire your financial genius

8.5.2.2. Be tough

8.6. 6. Pay your brokers well: the power of good advice

8.6.1. Their service should make you money

8.6.2. Ask how much property or stocks they own personally and how much they pay in taxes

8.6.2.1. Mind your own business

8.6.2.2. Work with people in the same business as you

8.6.2.3. Have your own board of directors

8.7. 7. Be an Indian giver: the power of getting something for nothing

8.7.1. on every investment there must be something for free

8.7.1.1. LImited risk or low risk idea

8.8. 8. Use assets to buy luxuries, the power of focus

8.8.1. be smarter than your money

8.8.1.1. be a master not a slave

8.9. 9. Choose Heros: the power of myth

8.9.1. Find heros who make it look easy

8.10. 10. Teach and you shall receive: the power of giving

8.10.1. Give what you want first, and it will come back in buckets

9. Do it now

9.1. Stop doing what you are doing

9.2. Look for new Ideas

9.3. Find someone who has done what you want to do

9.4. Take classes, read, attend seminars

9.5. Make lots of offers

9.6. Jog, walk or drive a certain area once a month for 10 minutes

9.7. Shop for bargains in all markets

9.8. Look in the right places

9.9. Look for people who want to buy first, then look for people who want to sell

9.10. Think big

9.11. Learn from history

9.12. Action always beats inaction