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Rich Dad #3
Rich Dad's Guide to Investing: What the Rich Invest in That the Poor and Middle Class Do Not!
Describes how the wealthiest percentage of the population handles investments, and suggests ways to follow the example, including building one's own business in order to invest as a business, not an individual.
403 pages, Paperback
First published June 1, 2000
2566 people are currently reading
20485 people want to read
About the author
Robert T. Kiyosaki
633 books9,448 followersRobert Toru Kiyosaki is an American businessman and author, known for the Rich Dad Poor Dad series of personal finance books. He is the founder of the Rich Dad Company, a private financial education company that provides personal finance and business education to people through books and videos, and Rich Global LLC, which filed for bankruptcy in 2012.
Since 2010, Kiyosaki was the subject of a class action suit filed by people who attended his seminars, and the subject of investigative documentaries by the CBC, WTAE-TV and CBS News. In January 2024, Kiyosaki revealed that he was more than $1 billion dollars in debt.
Since 2010, Kiyosaki was the subject of a class action suit filed by people who attended his seminars, and the subject of investigative documentaries by the CBC, WTAE-TV and CBS News. In January 2024, Kiyosaki revealed that he was more than $1 billion dollars in debt.
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Displaying 1 - 30 of 622 reviews
July 13, 2010
Like all Kiyosaki’s books that I’ve read so far (Rich Dad, Poor Dad, Cashflow Quadrant: Rich Dad's Guide to Financial Freedom, Rich Dad's Retire Young, Retire Rich), this one is more about developing the proper mental attitude to become rich, rather than a step-by-step handbook. He opens your eyes to the possibilities of obtaining wealth, gives a few general pointers, then leaves it up to you (and your financial team) to work out the details. His books are more strategic than operational, although there are operational tips sprinkled throughout.
Kiyosaki says that average investors invest to obtain comfort and security, but the rich invest primarily to become rich, and secondarily for comfort and security. He advises that you take advantage of the legal benefits of business ownership, acquiring assets as a business to minimize taxes.
The book’s subtitle promises to reveal what the rich invest in, that the poor and middle class do not. Kiyosaki says that average investors invest from the outside, through public stocks and mutual funds. He says that the real money is made by the rich when they invest from the inside: through businesses they start and then sell or take public, companies they invest in pre-IPO, and real estate. He also promotes hedges and "bear" investments to profit during market downturns, as well as traditional investments such as stocks and bonds. He strongly recommends that you assemble a financial team of lawyers, accountants, and financial advisers.
Kiyosaki summarizes this book near the end:
The book is divided into 3 phases. Phase 1 explains 13 Investor Lessons. Phase 2 describes several types of investors of increasing sophistication. In Phase 3, Kiyosaki presents his fundamentals for building a strong business.
If you’re looking for a book full of stock tips or real estate investing advice, this isn’t it. Instead, it contains general principles for starting and running a successful business, and advice on investing through that business.
I liked Kiyosaki’s advice to be an investor first, regardless of your profession. His nontraditional view of expenses is also thought-provoking: he says that debt, expenses, and losses are good, powerful forms of leverage when used to generate cash flow.
Investor Lessons
Lesson 1: Invest first to be rich, then to be comfortable and secure.
Lesson 5: Plan to be rich, not poor. Plan for financial abundance, not scarcity. Expand your financial vocabulary to expand your financial reality.
Lesson 6: Find a simple formula for getting rich and stick to it. Investing is a system; a dull, boring, almost mechanical process.
Lesson 9: Investing for comfort and security takes money, and is passive. Investing to be rich requires time, and is active.
Lesson 10: The real money comes from legal inside investing.
Notes
• To become rich, create assets rather than buying them. This is usually done by starting a business.
• Profit during down markets with short selling, put options, and other hedges.
• With earned income, you work for money and pay more taxes. With passive and portfolio income, your money works for you, and you pay fewer taxes.
• Microcaps have the highest returns. Become an inside investor by starting a business, or taking a controlling interest in an existing one.
• A business buys its assets with gross income, and pays taxes on net income. An individual/employee pays taxes on gross income, and buys assets with net income.
• To reduce your taxes, you want high expenses and low income, not low expenses and high income.
Kiyosaki says that average investors invest to obtain comfort and security, but the rich invest primarily to become rich, and secondarily for comfort and security. He advises that you take advantage of the legal benefits of business ownership, acquiring assets as a business to minimize taxes.
The book’s subtitle promises to reveal what the rich invest in, that the poor and middle class do not. Kiyosaki says that average investors invest from the outside, through public stocks and mutual funds. He says that the real money is made by the rich when they invest from the inside: through businesses they start and then sell or take public, companies they invest in pre-IPO, and real estate. He also promotes hedges and "bear" investments to profit during market downturns, as well as traditional investments such as stocks and bonds. He strongly recommends that you assemble a financial team of lawyers, accountants, and financial advisers.
Kiyosaki summarizes this book near the end:
"In order to create a world of an abundance of money it does require a degree of creativity, a high standard of financial and business literacy, seeking opportunities rather than seeking more security, and to be more cooperative instead of competitive."
The book is divided into 3 phases. Phase 1 explains 13 Investor Lessons. Phase 2 describes several types of investors of increasing sophistication. In Phase 3, Kiyosaki presents his fundamentals for building a strong business.
If you’re looking for a book full of stock tips or real estate investing advice, this isn’t it. Instead, it contains general principles for starting and running a successful business, and advice on investing through that business.
I liked Kiyosaki’s advice to be an investor first, regardless of your profession. His nontraditional view of expenses is also thought-provoking: he says that debt, expenses, and losses are good, powerful forms of leverage when used to generate cash flow.
Investor Lessons
Lesson 1: Invest first to be rich, then to be comfortable and secure.
Lesson 5: Plan to be rich, not poor. Plan for financial abundance, not scarcity. Expand your financial vocabulary to expand your financial reality.
Lesson 6: Find a simple formula for getting rich and stick to it. Investing is a system; a dull, boring, almost mechanical process.
Lesson 9: Investing for comfort and security takes money, and is passive. Investing to be rich requires time, and is active.
Lesson 10: The real money comes from legal inside investing.
Notes
• To become rich, create assets rather than buying them. This is usually done by starting a business.
• Profit during down markets with short selling, put options, and other hedges.
• With earned income, you work for money and pay more taxes. With passive and portfolio income, your money works for you, and you pay fewer taxes.
• Microcaps have the highest returns. Become an inside investor by starting a business, or taking a controlling interest in an existing one.
• A business buys its assets with gross income, and pays taxes on net income. An individual/employee pays taxes on gross income, and buys assets with net income.
• To reduce your taxes, you want high expenses and low income, not low expenses and high income.
June 5, 2008
Much like all of the Rich Dad Roor dad series, this book was good, but not necessarily great. For me, it's a bit too generic and conceptual, and not not quite specific enough. However, there's not too many great alterntives in my opinion so this is still a decent and valid read.
The author does have a tendency to repeat himself in his books, as well as push/advertise for his various other products. I'm not a fan of purchasing a 200 page book and getting 10% advertising.
All in all, while not perfect, it's still good, valid and a worthwhile read.
The author does have a tendency to repeat himself in his books, as well as push/advertise for his various other products. I'm not a fan of purchasing a 200 page book and getting 10% advertising.
All in all, while not perfect, it's still good, valid and a worthwhile read.
October 1, 2017
كتاب مفيد جدا وهو تتمة لكتاب الأب الغني والأب الفقير ،
اعجبني كثيرا سرد الكاتب لحياته مع أبيه الغني والفقير ،، توجد في الكتاب الكثير من الارشادات الملهمة
وابحار في عقلية الأغنياء والمستثمرين
الكتاب من بدايته يصدمك ،، فدائما ما يقول الكاتب افكار تتناقض مع طريقة تفكير الغالبية.. ثم يقنعك بها عبر الكثير من الامثلة
الكتاب يحفزك على التفكير ولا يعطيك نصائح مباشرة كما نتوقع
اعجبني كثيرا سرد الكاتب لحياته مع أبيه الغني والفقير ،، توجد في الكتاب الكثير من الارشادات الملهمة
وابحار في عقلية الأغنياء والمستثمرين
الكتاب من بدايته يصدمك ،، فدائما ما يقول الكاتب افكار تتناقض مع طريقة تفكير الغالبية.. ثم يقنعك بها عبر الكثير من الامثلة
الكتاب يحفزك على التفكير ولا يعطيك نصائح مباشرة كما نتوقع
July 27, 2020
Q: How to piss a socialist/anti-capitalism liberal off?
A: Gift him this book.
This is not only the worst book I have read on investment, but also, one of the worst books I read on ANY subject.
I didn't like the author's most famous "Rich Dad Poor Dad" with reasons listed in my review of the same.
What could one expect from a man who idolizes Donald Trump? ( Yes, I am biased. But, in my defense, I didn't know his adulation till I finished that book)
I had bought this along with the copy of Rich Dad Poor Dad, and I regret why I did that.
This book is an example of how a book shouldn't be written.
No. No. Don't think I am criticizing this book only because of the ideas the author holds that are diametrically opposite of those of mine.
Even if I discount the author's disdain towards the educated poor (yes, for him, poverty is a sin), towards working your way up through hardwork, towards austerity/minimalism, and his drooling over quick-gotten riches, working your ways out of tax laws, et al, my biggest peeve against this book is how it is written - it repeats the same sentences, points again and again and again and yet again, filling the pages, without providing any additional information. Absolutely terrible.
There is very little guidance about investment in this book. Mostly, it is all about why you should aim be rich, by hook or by crook ( and I felt like, the author would pat your back in private if you tell him how you chose the latter to gain your million). The author says - there are two problems in life, having less money and having more money, which one would you prefer? Sad way of looking at life, according to me.
If you really want to learn something about investment, DO NOT read this book.
Instead the book that I suggest is - The Intelligent Investor by Benjamin Graham.
A: Gift him this book.
This is not only the worst book I have read on investment, but also, one of the worst books I read on ANY subject.
I didn't like the author's most famous "Rich Dad Poor Dad" with reasons listed in my review of the same.
What could one expect from a man who idolizes Donald Trump? ( Yes, I am biased. But, in my defense, I didn't know his adulation till I finished that book)
I had bought this along with the copy of Rich Dad Poor Dad, and I regret why I did that.
This book is an example of how a book shouldn't be written.
No. No. Don't think I am criticizing this book only because of the ideas the author holds that are diametrically opposite of those of mine.
Even if I discount the author's disdain towards the educated poor (yes, for him, poverty is a sin), towards working your way up through hardwork, towards austerity/minimalism, and his drooling over quick-gotten riches, working your ways out of tax laws, et al, my biggest peeve against this book is how it is written - it repeats the same sentences, points again and again and again and yet again, filling the pages, without providing any additional information. Absolutely terrible.
There is very little guidance about investment in this book. Mostly, it is all about why you should aim be rich, by hook or by crook ( and I felt like, the author would pat your back in private if you tell him how you chose the latter to gain your million). The author says - there are two problems in life, having less money and having more money, which one would you prefer? Sad way of looking at life, according to me.
If you really want to learn something about investment, DO NOT read this book.
Instead the book that I suggest is - The Intelligent Investor by Benjamin Graham.
March 10, 2013
“Investing means different things to different people. In fact, there are different investments for the rich, poor, and middle class. Rich Dad’s Guide to Investing is a long-term guide for anyone who wants to become a rich investor and invest in what the rich invest in. As the title states, it is a ‘guide’ and offers no guarantees... only guidance.” - Robert Kiyosaki
June 3, 2012
This is a book that aims to change our way of thinking about obtaining money.
Robert Kiyosaki starts out by asking why 90% of the world's fortune lies in the hands of only 10% of the people. What makes this 10% so different that they can dominate the world's wealth?
The main difference, he says, lies in the way we think. The poorer 90% believe in financial security through getting a stable job, working hard and squirrelling the money in the bank. Or if they do invest, they invest without the necessary knowledge and experience, merely relying on gut instinct or hearsay. Of course, they rarely succeed.
In this age, those who work the most physically are paid the least and taxed the most. We all need to learn to make money mentally.
Robert Kiyosaki's real dad (poor dad), was his real-life example of someone stuck in the "old" way of thinking. As a teacher, he believed in working hard and avoiding mistakes. He rose to a high position, but then he lost his job. His whole life was spent teaching, but now he had to start searching for another job and start from scratch.
Robert's friend's dad (rich dad), on the other hand, started from nothing, made a lot of mistakes, but eventually build a financial empire. Rich dad then used his wealth to quietly help others, giving it back to society.
So how do we become like rich dad?
Firstly, you have to ask yourself whether you are prepared to be rich. Some people just want to be secure. Some want to be comfortable.
To be secure or comfortable, Robert recommended relying on good financial advisors to help you come up with a financial plan. Talk to different financial advisors, and be clear on your goals, so they can help you better. Robert took a month to come back with a plan for financial security - a mechanical, automatic and boring plan. The plan for financial comfort was trickier - it took 4 months and Robert had to really think about what he wanted in a comfortable life.
The really exciting part is to come up with a plan to be RICH. Yet, Robert recommends that a person had to have a plan for financial security and a plan for financial comfort in place, before pursuing a plan to be rich. Simply because pursuing a plan to be rich HAS risk, and so you'll need to know you have something to fall back on if you do fail.
To be rich requires a lot of work. Although Robert briefly covers investment in real estate (passive income) and stocks/ bonds (portfolio income), in this book, Robert focuses on building a business. With a business, you can enjoy tax advantages, and eventually, people will pay YOU for stock, not the other way round.
Building a business may seem like a lot of work, but so is being able to invest well in real estate or stocks. Robert teaches a lot of tips on how to reduce risk, but there is always going to be risk involved and a steep learning curve. Robert himself failed his first... and second businesses. But he kept learning and got the hang of it.
For those who are just starting out, Robert suggests getting a job that can teach you useful skills eg. sales techniques/ communication skills, and then start a part-time business. Part of your income can serve as the capital for your business, and if your business fails, you can still fall back on your job.
Read the book for more tips! Many of the details are relevant only to the American system, but the general idea is universal. It is certainly very helpful for me, and I seem to be walking in his footsteps inadvertently =)
Robert Kiyosaki starts out by asking why 90% of the world's fortune lies in the hands of only 10% of the people. What makes this 10% so different that they can dominate the world's wealth?
The main difference, he says, lies in the way we think. The poorer 90% believe in financial security through getting a stable job, working hard and squirrelling the money in the bank. Or if they do invest, they invest without the necessary knowledge and experience, merely relying on gut instinct or hearsay. Of course, they rarely succeed.
In this age, those who work the most physically are paid the least and taxed the most. We all need to learn to make money mentally.
Robert Kiyosaki's real dad (poor dad), was his real-life example of someone stuck in the "old" way of thinking. As a teacher, he believed in working hard and avoiding mistakes. He rose to a high position, but then he lost his job. His whole life was spent teaching, but now he had to start searching for another job and start from scratch.
Robert's friend's dad (rich dad), on the other hand, started from nothing, made a lot of mistakes, but eventually build a financial empire. Rich dad then used his wealth to quietly help others, giving it back to society.
So how do we become like rich dad?
Firstly, you have to ask yourself whether you are prepared to be rich. Some people just want to be secure. Some want to be comfortable.
To be secure or comfortable, Robert recommended relying on good financial advisors to help you come up with a financial plan. Talk to different financial advisors, and be clear on your goals, so they can help you better. Robert took a month to come back with a plan for financial security - a mechanical, automatic and boring plan. The plan for financial comfort was trickier - it took 4 months and Robert had to really think about what he wanted in a comfortable life.
The really exciting part is to come up with a plan to be RICH. Yet, Robert recommends that a person had to have a plan for financial security and a plan for financial comfort in place, before pursuing a plan to be rich. Simply because pursuing a plan to be rich HAS risk, and so you'll need to know you have something to fall back on if you do fail.
To be rich requires a lot of work. Although Robert briefly covers investment in real estate (passive income) and stocks/ bonds (portfolio income), in this book, Robert focuses on building a business. With a business, you can enjoy tax advantages, and eventually, people will pay YOU for stock, not the other way round.
Building a business may seem like a lot of work, but so is being able to invest well in real estate or stocks. Robert teaches a lot of tips on how to reduce risk, but there is always going to be risk involved and a steep learning curve. Robert himself failed his first... and second businesses. But he kept learning and got the hang of it.
For those who are just starting out, Robert suggests getting a job that can teach you useful skills eg. sales techniques/ communication skills, and then start a part-time business. Part of your income can serve as the capital for your business, and if your business fails, you can still fall back on your job.
Read the book for more tips! Many of the details are relevant only to the American system, but the general idea is universal. It is certainly very helpful for me, and I seem to be walking in his footsteps inadvertently =)
March 12, 2017
I hated reading this book. Why I didn't just stop reading it, I don't know. As much as this book was easy to read, a "Guide to Investing" it is not. It should be changed to "A guide to becoming a business owner".
That's not why I got the sudden urge to fling this book across my room though. It's because every chapter is written as if it should be the first chapter. Never in my life have I read "This chapter will teach you..." or some variation of that phrase so many times as I have with this book.
To be honest, I feel like this book was mostly an advertising scheme. Almost half way through the book he starts talking about the board games he made and keeps mentioning them till the end. The books last few pages is just adds for the games.
Another thing I don't like is that he does not go into detail about investing. In fact, it feels like at some point in the book he realized that he wasn't talking about investing and gave a description of the different type of investors but then went back to how to become a business owner. The only thing he says about investing is that you should have a broker. And that is not a spoiler, believe me.
Either way, the book was interesting but I wanted to learn about investing and this books only accomplishment for me was passing the time for a very slow shift at work.
That's not why I got the sudden urge to fling this book across my room though. It's because every chapter is written as if it should be the first chapter. Never in my life have I read "This chapter will teach you..." or some variation of that phrase so many times as I have with this book.
To be honest, I feel like this book was mostly an advertising scheme. Almost half way through the book he starts talking about the board games he made and keeps mentioning them till the end. The books last few pages is just adds for the games.
Another thing I don't like is that he does not go into detail about investing. In fact, it feels like at some point in the book he realized that he wasn't talking about investing and gave a description of the different type of investors but then went back to how to become a business owner. The only thing he says about investing is that you should have a broker. And that is not a spoiler, believe me.
Either way, the book was interesting but I wanted to learn about investing and this books only accomplishment for me was passing the time for a very slow shift at work.
September 9, 2018
“Rich Dad” series is yet another example of the law of getting-rich books which says the key to getting rich is not to read these getting-rich books but to write them. The author allegedly had below average results in his investing activities and really lives on book royalties.
If you really want to invest, read “the intelligent investor”.
If you really want to invest, read “the intelligent investor”.
June 9, 2012
Was not very impressed. The whole rich dad series feels cheap and full of fluff.
September 7, 2013
I've done a lot of self-reflection while reading this book. For the past 20 years, if I were to be very frank, i have been following my parents' advice closely, if not completely. Security and stability are what my parents expect from me. But deep inside, I know I must be more than that and I am forever grateful that i've read the series.
There has been a fundamental paradigm shift in my mindset and the way I think.
1. Keep searching, keep learning and keep challenging old ideas.
2. Learn to work hard mentally, not just physically.
3. School smarts are impt but so are street smarts. In fact, dean's list doesn't seem to be as appealing as it used to be. (Not excited any more). I'm more interested in developing my entrepreneurial skills and of course achieving my personal life goals.
4. Don't be average.
5. Learn to possess all the investors' controls
6. Appreciate,apply and master B-I Triangle
I have a long way to go and it's probably a tough one. But I can see my future more clearly and I've never felt this excited about embarking a new journey.
There has been a fundamental paradigm shift in my mindset and the way I think.
1. Keep searching, keep learning and keep challenging old ideas.
2. Learn to work hard mentally, not just physically.
3. School smarts are impt but so are street smarts. In fact, dean's list doesn't seem to be as appealing as it used to be. (Not excited any more). I'm more interested in developing my entrepreneurial skills and of course achieving my personal life goals.
4. Don't be average.
5. Learn to possess all the investors' controls
6. Appreciate,apply and master B-I Triangle
I have a long way to go and it's probably a tough one. But I can see my future more clearly and I've never felt this excited about embarking a new journey.
This entire review has been hidden because of spoilers.
November 5, 2021
I am stock broker and portfolio manager...i already have master in finance...let me say that this book surpassed all my expectations..i found it really a great book ..very great in teaching you investment in very simple and easy way..which makes you stuck to it..until i finished.5 🤩 stars
May 14, 2009
After his first book, I think he just started publishing things to get more money. This was pretty basic stuff.
October 15, 2009
كتاب رائع ومفيد وغني بالمعلومات. وأسلوب الكاتب شيق وممتع.
اكتسبت الكثير من المعرفة والوعي عن أمور المال والإستثمار منه.
أنصح بقراءته.
اكتسبت الكثير من المعرفة والوعي عن أمور المال والإستثمار منه.
أنصح بقراءته.
March 7, 2013
There is no meat to this book. Kiyosaki is a fraud.
March 6, 2011
This book continues the RDPD tradition with discussions of financial literacy and investments. However, the book focuses more on the insider point of view: business develop and taking companies public. I just haven't found this information written in such an easy to read format. Even though I'm not yet at this stage in my investment life, I will keep this knowledge tucked away for future use...you never know when you will need it. This entire series is not about 'how to' but rather about financial guidance and direction for the average person. Since I've started reading this series (not necessarily in order), I've been committed to increasing my finanical education and consistently investing as I find opportunities that make sense to me (based on my current level of knowledge and experience). The information in this book just moved me another step closer to my financial goals.
March 24, 2024
Rich Dad's Guide to Investing is okay for newbies entering the world of finance. It talks a lot about starting a business, making assets not liabilities, and being more financially literate. It's kind of like a pep talk, getting you motivated for financial success. But, jeez, it’s super repetitive, doesn't give many real-life examples, and the constant self-promo was off-putting. You're left wishing for more real, practical tips instead of just concepts.
September 19, 2019
I think this is like the final book of a trilogy. The Rich dad series has been of the most eye opening series of my life and has truly transformed my thinking.
This book built upon the ideas of previous 2 books and gets technical by the end. If you were paying attention to it, it gave you the secret to financial immortality.
But were you ?
This book built upon the ideas of previous 2 books and gets technical by the end. If you were paying attention to it, it gave you the secret to financial immortality.
But were you ?
May 11, 2014
Loaded with practical steps from his Business Triangle. This is the book I've been waiting for, because it contains actual nuggets on dos/don'ts inside the business itself.
July 30, 2017
"En la escuela, eres considerado inteligente si no cometes errores. En la calle eres inteligente sólo si cometes errores y aprendes de ellos"
April 16, 2020
This book is about the different types of investors, the different business structure and entity, the 10 investor controls, and the B-I Triangle.
Here's some of my notes:
Don't be an average investor.
The best way to invest is to have your business buy your investments for you.
The rich created investments called businesses.
Learn how to build business and how to analyze a business.
Insurance is a very important product and needs to be considered as part of your financial plan.
It is a safety net or a hedge against financial liabilities and weak spots. Also, as you become
rich, the role of insurance and type of insurance in your financial plan may change as your
financial position and needs change. So keep that part of your plan up to date.
Insurance is a very important product in anyone's life plan. The trouble with insurance is that
you can never buy it when you need it. So you have to anticipate what you need and buy it
hoping you'll never need it. Insurance is simply peace of mind.
Your financial team may include:
Financial planner, banker, tax accountant, tax attorney, broker, bookkeeper, insurance agent, successful mentor.
Making mistakes is the way we were all designed to learn. Learn to say "What priceless lesson can I learn from this mistake?" Think, "I'm glad that happened because I learned this and that from the experience.
To be a rich investor, you must have a plan, be focused, and play to win.
Think on both sides of the coin. The rich investor must have more flexible thinking than the average investor.
Sophisticated investor knows the 3 Es: Education, Experience, and Excessive cash
Investing is not risky. Being out of control is risky.
Have a financial plan for when you did not have enough money and when you will have too much money.
Find a financial adviser to write a financial plan for financial security, financial comfort, and rich.
Investing is a plan, not a product or procedure. It is a very personal plan. A plan to get you from where you are to where you want to be.
Don't invest until you have a plan.
When it is investing, simple is better than complex. If you can't do it automatically after you learn it, you shouldn't follow it.
When you look at an investment, overlay it with your personal financial statement, and see where it fits. Since investing is a plan, you want to see how this investment's financial statement impacts your personal financial statement. You can analyze how you can afford the investment. By knowing your numbers, you know what will happen if you borrow money to buy an investment and the long-term impact balanced with income and outflow due to debt payments.
Having too much money is as big a problem as having not enough money.
The ability to manage cash flow and to read financial statements is fundamental to success on the B and I side of the CASHFLOW QUADRANT.
Your exit is often more important than the entry strategy.
The rich do not want to own anything but want to control everything. And they control via corporations and limited partnerships.
Turn your ideas into assets that buy assets. Business buys assets with pre-tax dollars. Buy assets with gross income and pay taxes with net income.
Consult with your financial and tax advisers to determine the appropriate structure for your situation.
The number one control you must have to be an investor is control over yourself. It isn't the investment that is risky, it is the investor who is risky.
As the world becomes crowded with more and more products, the businesses that survive and do well financially will be businesses that focus on serving and fulfilling the company's mission and their customers' needs, rather than just increasing the company's revenues.
Investors invest in management Look at the team for experience, passion, and commitment.
Money follows management.
The B-I Triangle is formed by the Mission, Team, and Leadership. It consists of Cash Flow Management, Communication, Systems, Legal and, Product
By looking at the financial statements of a company, you can easily see which areas of a business are communicating and which are not. A public company has increased communications problems. One for the public and one for the shareholders. When people say they wish they haven't taken their company public, it usually means that they are having shareholder communication problems.
Being able to communicate effectively with as many people as possible is a very important life skill.
The primary - and possibly only - job of those in the B quadrant is to communicate with people in the other quadrants.
Get a job with a company that will train you in sales.
Get through your fears and the world will open up. Give in to your fears and your world will get smaller every year.
Successful people find their weaknesses and make them strengths.
In the world of business, appearance is a powerful communicator. You have only one chance to make a first impression.
Sales over marketing. Once you learn to sell, you need to learn how to market. Sales is what you do in person, one on one. Marketing is sales done via a system.
Always make sure you know your audience and that your marketing tool has been designed for that audience. In every marketing or sales effort, include these 3 key ingredients: identify a need, provide a solution, and answer your customers' question "What's in it for me?" with a special offer. It also helps if you can create a sense of urgency for your customers to respond to.
A good business person can manage multiple system effectively without becoming part of the system.
A CEO's job is to supervise all systems and identify weaknesses before the weaknesses turn into system failures.
At each new level of growth, the CEO must start planning the systems needed to support the next level of growth, from phone lines to lines of credit for production needs. Systems drive both cash flow management and communication. As your systems get better, you or your employees will have to exert less and less effort.
The more you can formalize your operations, the more efficient your business will become.
Start, practice, make mistakes, correct, learn, and improve.
Goals have to be clear, simple, and in writing. If they are not in writing and reviewed daily, they are not really goals. They are wishes.
If you are having any doubts about whom you are doing business with and they have pets, find a way to check out their pets. Human are able to put forth a pleasant front and say things they really don't mean with a smile, but their pets don't lie. A person's insides are reflected on his or her pet's outside.
One of the reasons so many newly rich people suddenly go broke is because they use their old money habits to handle new money problems.
When people have money they feel more intelligent, when in fact they are becoming more stupid.
It is through our expenses that we become richer or poorer, regardless of how much money we make.
By having a plan to be rich, understanding the tax laws and corporate laws, you can use your expense column to get rich.
If you want to become rich and stay rich, you must have control of your expenses.
Spend money to acquire other assets, assets such as real estate or paper assets.
Low income and high expenses make you rich by utilizing the tax laws and corporate laws to bring those expenses back to the income column.
What percentage of the money going out your expense column winds up back in your income column in the same month?
Build a business to buy assets.
Give money back after you made it.
Constantly challenge and update ideas
Ideas do not need to be new, they just need to be better.
Here's some of my notes:
Don't be an average investor.
The best way to invest is to have your business buy your investments for you.
The rich created investments called businesses.
Learn how to build business and how to analyze a business.
Insurance is a very important product and needs to be considered as part of your financial plan.
It is a safety net or a hedge against financial liabilities and weak spots. Also, as you become
rich, the role of insurance and type of insurance in your financial plan may change as your
financial position and needs change. So keep that part of your plan up to date.
Insurance is a very important product in anyone's life plan. The trouble with insurance is that
you can never buy it when you need it. So you have to anticipate what you need and buy it
hoping you'll never need it. Insurance is simply peace of mind.
Your financial team may include:
Financial planner, banker, tax accountant, tax attorney, broker, bookkeeper, insurance agent, successful mentor.
Making mistakes is the way we were all designed to learn. Learn to say "What priceless lesson can I learn from this mistake?" Think, "I'm glad that happened because I learned this and that from the experience.
To be a rich investor, you must have a plan, be focused, and play to win.
Think on both sides of the coin. The rich investor must have more flexible thinking than the average investor.
Sophisticated investor knows the 3 Es: Education, Experience, and Excessive cash
Investing is not risky. Being out of control is risky.
Have a financial plan for when you did not have enough money and when you will have too much money.
Find a financial adviser to write a financial plan for financial security, financial comfort, and rich.
Investing is a plan, not a product or procedure. It is a very personal plan. A plan to get you from where you are to where you want to be.
Don't invest until you have a plan.
When it is investing, simple is better than complex. If you can't do it automatically after you learn it, you shouldn't follow it.
When you look at an investment, overlay it with your personal financial statement, and see where it fits. Since investing is a plan, you want to see how this investment's financial statement impacts your personal financial statement. You can analyze how you can afford the investment. By knowing your numbers, you know what will happen if you borrow money to buy an investment and the long-term impact balanced with income and outflow due to debt payments.
Having too much money is as big a problem as having not enough money.
The ability to manage cash flow and to read financial statements is fundamental to success on the B and I side of the CASHFLOW QUADRANT.
Your exit is often more important than the entry strategy.
The rich do not want to own anything but want to control everything. And they control via corporations and limited partnerships.
Turn your ideas into assets that buy assets. Business buys assets with pre-tax dollars. Buy assets with gross income and pay taxes with net income.
Consult with your financial and tax advisers to determine the appropriate structure for your situation.
The number one control you must have to be an investor is control over yourself. It isn't the investment that is risky, it is the investor who is risky.
As the world becomes crowded with more and more products, the businesses that survive and do well financially will be businesses that focus on serving and fulfilling the company's mission and their customers' needs, rather than just increasing the company's revenues.
Investors invest in management Look at the team for experience, passion, and commitment.
Money follows management.
The B-I Triangle is formed by the Mission, Team, and Leadership. It consists of Cash Flow Management, Communication, Systems, Legal and, Product
By looking at the financial statements of a company, you can easily see which areas of a business are communicating and which are not. A public company has increased communications problems. One for the public and one for the shareholders. When people say they wish they haven't taken their company public, it usually means that they are having shareholder communication problems.
Being able to communicate effectively with as many people as possible is a very important life skill.
The primary - and possibly only - job of those in the B quadrant is to communicate with people in the other quadrants.
Get a job with a company that will train you in sales.
Get through your fears and the world will open up. Give in to your fears and your world will get smaller every year.
Successful people find their weaknesses and make them strengths.
In the world of business, appearance is a powerful communicator. You have only one chance to make a first impression.
Sales over marketing. Once you learn to sell, you need to learn how to market. Sales is what you do in person, one on one. Marketing is sales done via a system.
Always make sure you know your audience and that your marketing tool has been designed for that audience. In every marketing or sales effort, include these 3 key ingredients: identify a need, provide a solution, and answer your customers' question "What's in it for me?" with a special offer. It also helps if you can create a sense of urgency for your customers to respond to.
A good business person can manage multiple system effectively without becoming part of the system.
A CEO's job is to supervise all systems and identify weaknesses before the weaknesses turn into system failures.
At each new level of growth, the CEO must start planning the systems needed to support the next level of growth, from phone lines to lines of credit for production needs. Systems drive both cash flow management and communication. As your systems get better, you or your employees will have to exert less and less effort.
The more you can formalize your operations, the more efficient your business will become.
Start, practice, make mistakes, correct, learn, and improve.
Goals have to be clear, simple, and in writing. If they are not in writing and reviewed daily, they are not really goals. They are wishes.
If you are having any doubts about whom you are doing business with and they have pets, find a way to check out their pets. Human are able to put forth a pleasant front and say things they really don't mean with a smile, but their pets don't lie. A person's insides are reflected on his or her pet's outside.
One of the reasons so many newly rich people suddenly go broke is because they use their old money habits to handle new money problems.
When people have money they feel more intelligent, when in fact they are becoming more stupid.
It is through our expenses that we become richer or poorer, regardless of how much money we make.
By having a plan to be rich, understanding the tax laws and corporate laws, you can use your expense column to get rich.
If you want to become rich and stay rich, you must have control of your expenses.
Spend money to acquire other assets, assets such as real estate or paper assets.
Low income and high expenses make you rich by utilizing the tax laws and corporate laws to bring those expenses back to the income column.
What percentage of the money going out your expense column winds up back in your income column in the same month?
Build a business to buy assets.
Give money back after you made it.
Constantly challenge and update ideas
Ideas do not need to be new, they just need to be better.
December 26, 2022
Solid read that is more a “how to think” than a “what to do” book. Opens your eyes to what’s really possible.
January 21, 2026
I know there are some backlash about this book being more “strategic than operational”, but Kiyosaki himself said: you can’t teach someone to ride a bike using a book. So majority of this book is mindset based. One star deducted for its redundancy, this book did not need to be 600 pages, wrap it up in 300 pages man 🤣
October 5, 2007
This book opened my eyes to the double standard we allow to exist within America's exclusionary economy.
Class separation exists though our ignorance to the true financial game being played by the wealthy population. In fact, the system is setup to inhibit any advances without insider knowledge. Without the (now seemingly remedial) information presented within, I would have continued my class defining trajectory into medical school, only to be further pigeon holed as a quasi-self employed physician struggling to operate within a socialistic corporate health care system. Like many of my potential colleagues residing in Kyosaki's "E" or "S" quadrants, I would have been caught in the rat race without the spring board benefits of corporate tax loop holes and Initial Public Offerings (IPO's) that by federal law, only exist to those in the "B" and "I" quadrants. Thank God for that information.
This book should be a must read for ALL AMERICAN CITIZENS.
The current education system is designed to maintain ignorance to the contents of this book. READ IT and TEACH OTHERS, ESPECIALLY YOUR CHILDREN.
Class separation exists though our ignorance to the true financial game being played by the wealthy population. In fact, the system is setup to inhibit any advances without insider knowledge. Without the (now seemingly remedial) information presented within, I would have continued my class defining trajectory into medical school, only to be further pigeon holed as a quasi-self employed physician struggling to operate within a socialistic corporate health care system. Like many of my potential colleagues residing in Kyosaki's "E" or "S" quadrants, I would have been caught in the rat race without the spring board benefits of corporate tax loop holes and Initial Public Offerings (IPO's) that by federal law, only exist to those in the "B" and "I" quadrants. Thank God for that information.
This book should be a must read for ALL AMERICAN CITIZENS.
The current education system is designed to maintain ignorance to the contents of this book. READ IT and TEACH OTHERS, ESPECIALLY YOUR CHILDREN.
November 2, 2009
This book was a touching book. This book tells you the reality of life. This book tells a situation and tells the reader why it is either good or bad. This book has a persepective of a rich father and a poor father. This book shows how you can live good with a wealthy or poor family.
This book has many connections. One conection that is in this book is a economic connection. This book is a type of book that you would remember about. This book tells everything that you need to know about your future life. This also tells you what will proboly happen witha kind of family you got.
I gave this book 4 stars becasue I thought that it was helpful for the future life. This book helps the economic life in the future. I would recomened this book to people that want to be or already bussiness people. This book, for me got really boring at times.
This book has many connections. One conection that is in this book is a economic connection. This book is a type of book that you would remember about. This book tells everything that you need to know about your future life. This also tells you what will proboly happen witha kind of family you got.
I gave this book 4 stars becasue I thought that it was helpful for the future life. This book helps the economic life in the future. I would recomened this book to people that want to be or already bussiness people. This book, for me got really boring at times.
May 10, 2021
Редкостное словоблудие не имеющие ничего общего с реальным инвестированием и деньгами. фабула книжки переливаемая из пустого в порожнее такова: чтобы быть богатым вам нужно быть финансово грамотным, наймите финансового консультанта, создайте свой бизнес, выйдите на IPO, станьте богатым! вуаля, епта.
Господа, читайте лучше Грэма. Не тратьте время попусту.
Господа, читайте лучше Грэма. Не тратьте время попусту.
February 13, 2021
Прекалено mainstream. Заслужава си прочита, ама намесата на зодиите ми се струва несериозно в книга за инвестиране
April 24, 2016
One of the worst books I wasted time on in a while. Literally the whole book is general sentences that are pretty much unless. You will find shit like "you will know you are financially smart when you know the difference between a good investment and a bad investment" you don't say!! Dumbass. This book is 99% repetition of things already mentioned in this book and previous books and 1% original content. I swear to go some sentences are repeated more than 50 times in just a 100 page. The lack of context is just frustrating.
May 25, 2013
This book is the second I've read in the Rich Dad series. I found this one to be just as informative, if not more so than the first book in the series. The author takes you on a journey in understanding what true investments are and how they benefit you. This is not a book on the stock market strategy or stock tips. This book encompasses all investments and I recommend it for anyone.
May 30, 2022
okay boomer
May 28, 2024
Upon finishing the trilogy of the Rich Dad Poor Dad series, this book felt unnecessarily drawn out. If I had read it prior to Rich Dad Poor Dad or Cash Flow Quadrant I would have savored every page but having read these books in a back to back sequence I was quite relieved to close the cover. The value in this book are the diamonds in the haystack: points underlying risk management, historical analysis, mental and spiritual preparedness, experience, failure and legal loopholes opened my mind to new ways and strategies in which one can achieve financial freedom. If you plan on reading this trilogy in its intended order I would recommend fully reading the first two then skimming this book by relevant and interesting sections.
Some of the diamonds I found:
“Great spirits have often encountered violent opposition from mediocre minds.” (Einstein)
“A leader’s job is to bring out the best in people, not to be the best person.” (Rich Dad)
“The boundaries of a person’s reality often do not change until that person forsakes what he or she feels confident in and then goes blindly with faith.” (Rich Dad)
Some of the diamonds I found:
“Great spirits have often encountered violent opposition from mediocre minds.” (Einstein)
“A leader’s job is to bring out the best in people, not to be the best person.” (Rich Dad)
“The boundaries of a person’s reality often do not change until that person forsakes what he or she feels confident in and then goes blindly with faith.” (Rich Dad)
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