LECHTER
There is a need.
Does school prepare children for the real world? Study hard, get good grades and you will find a high paying job with great benefits
Sharon and husband Michael have good paying jobs and great benefits but their savings are not substantial
One day her kid comes and asks her Why should I study that which Ill never use in real life? She gives the same advice If you dont get good marks
Now She realised that the world around has changed but the advise is still the same.
She had to look for new ways to guide her childrens education
The happy couple born 35 years ago is now trapped in the rat race. They work for the owners of the company, for the government paying taxes and for the bank paying off a mortgage and credit cards
Then they advise their own children to study hard, get good grades and find a safe job or career. The process repeats into another hardworking generation. This is the rat race.
RICH DAD
Never finished eighth grade
POOR DAD
Highly educated Intelligent Went to Stanford, Chicago and North western university on full financial scholarship.
The love of money is the root of all evil The lack of money is the root of all evil
I cant afford it
Rich should pay more in taxes to take care of those who are less fortunate
Taxes punish those who produce and reward those who dont produce
Study hard so that you can find a good company to work for
The reason I am not rich is because I have you kids The reason I must be rich because I have you kids
When it comes to money, play it safe, dont take risks Learn to manage risk
It was difficult for Robert to decide whom to follow, The rich was not yet rich, the poor was not yet poor. Finally at the age of 9 he made the decision.
Ill teach to you how life teaches, Life pushes you around and you get pushed
Rule no.1 :KNOW THE DIFFERENCE BETWEEN AN ASSET AND LIABILITY INCOME EXPENSE INCOME
EXPENSE
ASSET
LIABILITY
ASSET
LIABILITY
POOR DAD
ASSET LIABILITY
RICH DAD
ASSET LIABILITY
HOME
HOME
CASH FLOW
MIDDLE CLASS
INCOME EXPENSE
RICH CLASS
INCOME EXPENSE
ASSET
LIABILITY
ASSET
LIABILITY
EXPENSE
INCOME 1
EXPENSE 2
ASSET
LIABILITY 3
McDonalds
Income
Liability
Work for Bank
For adults keep your expenses low, reduce your liabilities and diligently build a base of solid assets.
The rich people focus on their assets whereas the poor or the average focus on their income statements.
Why ?????????
Often in the real world it is not the smart that get ahead but the BOLD
Henry Ford once said, Thinking is the hardest work there is. That is why so few people engage in it.
Its not so much how much you make, but how much you keep, how hard it works for you, and how many generations you keep it for.
Your profit is made when you buynot when you sell. When the stock markets crash people sell When the economy does well and estate prices grow people buy..
Why ?????
The more people you are indebted to, the poorer you are. The more people you have indebted to you, the wealthier you are. That is the game. You bosss job is to give you a job. Its your job to make yourself rich.
Main management skills needed for success 1) The management of Cash flows
2) The management of Systems
OVERCOMING OBSTACLES
Five reasons why financially literate people do not develop abundant asset column
Fear
Cynicism
Laziness
Bad Habits
Arrogance
GETTING STARTED
Ten Steps to develop your powers
I need a reason greater than reality I choose daily Choose friends carefully Master a formula and then learn a new one
Be an Indian giver
Contd.
Three Incomes
1. Earned Income
2. Passive Income
3. Portfolio Income
Thank You