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

Lesson 1: The rich don't work for money

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

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

Money is in control of their emotions and souls

Many people are ignorant about money

See what others miss

Created a comic book library

Lesson 2: Why Teach Financial Literacy?

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

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

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

Who are you working for?

The company

The bank, Mortgage/Credit cards

The government, Taxes

Lesson 3: Mind Your Own Business

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

Business' that do not require my presence

Stocks

Bonds

Income-generating real estate

Notes (IOUs)

Royalties from IP

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

Be Active in your asset column

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

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

Knowledge is power

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

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

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

The tax man will take more if you let him

Financial IQ

Accounting, Ability to read and understand financial statements

Investing, Science of making money from money

Understanding Markets, Science of supply and demand, Does the investment make sense based on current market conditions?

The Law, Tax advantages, Companies can spend first and pay tax on whats left (opposite to employees), protection from law suits, Control but not own

Lesson 5: The Rich Invent Money

self doubt and lack of confidence hold us back

inside everyone of us is brave, brilliant and daring

its not the smart that get ahead but the bold

play Cashflow to increase understanding

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

Great opportunities are seen with your mind not your eyes

Learn to recognise opportunities

Professional Investor puts deals together

Find an opportunity everyone else has missed

Raise money

Organise smart people, Have great advisors

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

Learn to sell

Give books obnoxious titles

Know a little about a lot

Learn constantly

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

Management skills for success

Cashflow

Systems

People

Marketing & Comms

Most important specialised skills

writing, speaking, negotiating, Attend courses, Can always learn more

Be Good Learner, seller, marketer and teacher

Overcoming Obstacles

Fear

Pain of losing money greater than the joy of being rich, Failure inspires winners. Failure defeats losers.

If you hate losing, play it safe. Start early

Cynicism

Sky is falling, Noise, Self doubt, We all hear it

Worst of times are actually the best of times

Watch out for buyers remorse

Laziness

Too busy to take care of own wealth

A little greed is good

How can I afford it?

Bad habits

Pay Yourself First

Arrogance

To Do's

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

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

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

2. Make daily choices: The power of choice

First invest in education, Books, CD's, Listen to an investor say something i disagree with, Re-listen and keep an open mind, Go to seminars, Preferably 2 days so can immerse in topic

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

3. Choose friends carefully: power of association

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

Ask someone who has been success how they did it

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

You become what you study, Search for a faster formula

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

Don't get into large debt positions that you have to pay for. Keep your expenses low, Build up assets before you buy car etc

When you come up short, let the pressure build and don't dip into savings or investments, Use the pressure to inspire your financial genius, Be tough

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

Their service should make you money

Ask how much property or stocks they own personally and how much they pay in taxes, Mind your own business, Work with people in the same business as you, Have your own board of directors

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

on every investment there must be something for free, LImited risk or low risk idea

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

be smarter than your money, be a master not a slave

9. Choose Heros: the power of myth

Find heros who make it look easy

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

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

Do it now

Stop doing what you are doing

Look for new Ideas

Find someone who has done what you want to do

Take classes, read, attend seminars

Make lots of offers

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

Shop for bargains in all markets

Look in the right places

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

Think big

Learn from history

Action always beats inaction