Rich Dad Poor Dad

by Robert T. Kiyosaki

Lesson #1: The Rich Don’t Work for Money

Intelligence solves problems and produces money. Money without financial intelligence is money soon gone.

When I want a bigger house, I first buy assets that will generate the cash flow to pay for the house.

Once you understand the difference, concentrate your efforts on buying income-generating assets. That’s the best way to get started on a path to becoming rich. Keep doing that, and your asset column will grow. Keep liabilities and expenses down so more money is available to continue pouring into the asset column. Soon the asset base will be so deep that you can afford to look at more speculative investments: investments that may have returns of 100 percent to infinity; $5,000 investments that are soon turned into $1 million or more; investments that the middle class calls “too risky.” The investment is not risky for the financially literate.

Many people are afraid of small-cap companies and call them risky, and they are. But that risk is diminished if you love what the investment is, understand it, and know the game.

Buying a luxury on credit often causes a person to eventually resent that luxury because the debt becomes a financial burden.

Often in the real world, it’s not the smart who get ahead, but the bold.

Wise investors buy an investment when it’s not popular.

Most people don’t know that my partner is my cat.