My Summary of Rich Dad Poor Dad

Date: Jan2010

1. Introduction to Income statement and balance sheet:

Income RM2000 Income ▲RM5000

Expense RM1500
Asset Liability Expense ▲RM4500

Asset Liability ▲
-taxes,
mortgage,
car loan,
credit card
Year 2000 Year 2010

We are in rat-race. The higher the income, the higher the desire to spent and increase
expenses and liabilities.

2. You won’t be wealthy until your asset can generate income equal or more to your
expenses.

Income
Expense
Asset Liability

To start with, we have to buy asset that we can afford from excess of our income
(income – expenses). The asset has to create higher value asset or generate
monthly income. Hint: Buy low and sell at or lower than market value.

3. For that, we have to seek training / experience that enable us to recognize

opportunity.
4. We have to mind our own business in developing our asset column.
5. The middle class pay the most taxes. The working class pay taxes before
spending. The riches with corporation spend before paying taxes.
6. The rich invent the money. Buy at low price (during depression) and sell at higher
price.
7. Work to learn. The selling skill is the most important skill. People with specialize
skill has to has selling skill to be successful. To learn selling skill, join certain
company or multilevel marketing.
8. Overcoming obstacle:
a. Fear of losing money. No rich people did not lose money, but many poor
people did not lose money.
b. Overcoming cynicism. Eg. Chicken little.
c. Overcoming laziness. Use your greed. Say, How I can afford it. DO no say
I cannot afford it.
 d. Overcoming bad habit
e. Overcoming arrogance. Ask the expert on subject matter.
9. Educated yourself through seminar, training, listen to audio, etc
10. Pay yourself first so that you will have motivation to seek for more money to pay
your creditor. You pay yourself by investing in your asset column.
11. Find a broker who mind his own business and has similar love with you. Pay your
broker well.
12. Teach / Give and you shall receive.
13. If you interesting in real estate:
a. Find somebody that can guide you. Pay him lunch.
b. Jog, walk to the intended area. Find advertisement that is long hanging and
make offer. You wouldn’t know whether they will accept your offer until
you tried.
c. Look at the right place – i.e. auction, foreclosure department (in USA).
d. Look for buyer and then, find a seller.