RICH DADRICH DADPoor DadPoor Dad

By :Robert KiyosakiBy :Robert KiyosakiSharon Lecher C.P.ASharon Lecher C.P.A

Presented by: Presented by: Pradeep Prabhuchanderkar Pradeep Prabhuchanderkar

EMBA05 – Roll No.16EMBA05 – Roll No.16

What Rich Teach What Rich Teach Their KidsTheir Kids

About Money That About Money That Poor & Middle class Poor & Middle class

Do Not !Do Not !

““The poor & middle class The poor & middle class work for moneywork for money . “ . “ The rich The rich have money work for themhave money work for them”.”.

THE RICH DON’T WORK THE RICH DON’T WORK FOR MONEYFOR MONEY..

Poor Dad Vs Rich DadPoor Dad Vs Rich DadThe The lovelove of Money is of Money is root of all Evilroot of all EvilI can’t afford it.I can’t afford it.Study hard so that Study hard so that you can find a good you can find a good company to work forcompany to work for

Money Play it safe, Money Play it safe, Don’t take RiskDon’t take Risk

The The lacklack of Money is of Money is Root of all EvilRoot of all EvilHow can I afford it ?How can I afford it ?Study Hard so that Study Hard so that you can find good you can find good company to Buy.company to Buy.Money- Don’t play Money- Don’t play safe, Play it safe, Play it Smart.Smart.

Learn to manage Learn to manage Risk.Risk.

Poor Dad Vs Rich DadPoor Dad Vs Rich DadDepends on Depends on company/Government for company/Government for pay hike, medical pay hike, medical insurance, retirement insurance, retirement plan etc.plan etc.

I am not interested in I am not interested in MoneyMoney

Our home is our largest Our home is our largest investment and our investment and our greatest asset.greatest asset.

Believes in total financial Believes in total financial self reliance.self reliance.

Money is Money is Power.Power.

My house is a liability My house is a liability and if your house is and if your house is your largest investment your largest investment you are in Trouble.you are in Trouble.

There is a need.There is a need.Study Hard, Get Good Grades and you will Find a high Study Hard, Get Good Grades and you will Find a high

paying job with Great Benefits (Safe & Secure Jobspaying job with Great Benefits (Safe & Secure Jobs))

RAT RACERAT RACEStudy Hard, Graduation, Post Graduation, Job, Marriage, Study Hard, Graduation, Post Graduation, Job, Marriage,

Children,Promotions/Jobchange,House, Cars, Children,Promotions/Jobchange,House, Cars,

Good School, Overtime/Part Time Jobs, VacationsGood School, Overtime/Part Time Jobs, Vacations……………………Fast TrackFast Track

Bill Gates,Michale Jordon, Madonna…..Bill Gates,Michale Jordon, Madonna…..

There is a need.There is a need.Study Hard, Get Good Grades and you will Find a high Study Hard, Get Good Grades and you will Find a high

paying job with Great Benefits (Safe & Secure paying job with Great Benefits (Safe & Secure JobsJobs) )

IS A BAD ADVICEIS A BAD ADVICEThe world has changed & Changing very fast The world has changed & Changing very fast

and current educational system has failed and current educational system has failed to cope up with the changeto cope up with the change..

Education is the foundation of success so are Education is the foundation of success so are the Financial skills & Communication skills.the Financial skills & Communication skills.

There is a need.There is a need.Financial Intelligence is the Mental Process via Financial Intelligence is the Mental Process via

which we solve our Financial Problems.which we solve our Financial Problems.

But there are different set of rules with which But there are different set of rules with which Rich Plays compared to Poor & Middle Rich Plays compared to Poor & Middle class.class.

Example : Down Sizing/ Right Sizing of The Example : Down Sizing/ Right Sizing of The Company.Company.

Why Teach Financial Literacy ?Why Teach Financial Literacy ?

RetirementRetirement : : We can work or Not Work and our wealth We can work or Not Work and our wealth grows automatically staying way ahead of grows automatically staying way ahead of inflation.inflation.

In life it is not important how much money you make, It is In life it is not important how much money you make, It is how much Money you keep.how much Money you keep.

Assets Assets : Puts Money in your Pocket.: Puts Money in your Pocket.

LiabilityLiability : It is something that takes Money out of a : It is something that takes Money out of a Pocket.Pocket.

WealthWealth : : Persons ability to survive so many days Forward Persons ability to survive so many days Forward..

Poor /Middle Class Financial StatementPoor /Middle Class Financial Statement

IncomeIncome

Pay Check.Pay Check.

ExpensesExpenses

Taxes,Taxes,

MortgageMortgage

Fixed Fixed ExpensesExpenses

AssetsAssets LiabilitiesLiabilities

Home,Home,

Consumer Consumer Loans,Loans,

Credit cardsCredit cards

Rich Class Financial StatementRich Class Financial Statement

IncomeIncome

Dividends,Dividends,

Interest,Interest,

Rental Rental IncomeIncome

ExpensesExpenses

AssetsAssetsStocks,Stocks,

Bonds,Bonds,

Real Real Estate,IPREstate,IPR

LiabilitiesLiabilities

Why Teach Financial Literacy ?Why Teach Financial Literacy ?8899777788997777

The way to get Richer is to increase the Cash The way to get Richer is to increase the Cash Flow from the Assets, keep the expenses Flow from the Assets, keep the expenses less than the cash Flow generated from less than the cash Flow generated from these assets.these assets.

Reinvestment process continues with more Reinvestment process continues with more and more income from Sources other than and more income from Sources other than the Physical labor.the Physical labor.

Mind your Own BusinessMind your Own BusinessProfession & Business : McDonald StoryProfession & Business : McDonald StoryFinancial Struggle is often directly the result of Financial Struggle is often directly the result of

People working all their life for some one else.People working all their life for some one else.

Owner or Share Holders of the CompanyOwner or Share Holders of the Company Government ( Taxes )Government ( Taxes ) Banks ( Repayment of Loans )Banks ( Repayment of Loans )

Business revolves around the Asset columnBusiness revolves around the Asset column..

History of Taxes & Power of CorporationHistory of Taxes & Power of Corporation

Robin Hood : Collect it from Rich & Distribute it to the Poor.Robin Hood : Collect it from Rich & Distribute it to the Poor.

Financial I.QFinancial I.Q..It is made up of knowledge from Four Broad Areas of ExpertiseIt is made up of knowledge from Four Broad Areas of Expertise..

1)1) AccountingAccounting : Financial Literacy is the ability to read & understand : Financial Literacy is the ability to read & understand financial statements.financial statements.

2)2) InvestingInvesting : Science of Money MAKING Money : Science of Money MAKING Money

3)3) Understanding MarketUnderstanding Market : Technical aspect of science of : Technical aspect of science of Supply & DemandSupply & Demand

4)4) Law Law : To make advantages from various provisions in the law : To make advantages from various provisions in the law for Growth of the Organization.for Growth of the Organization.

The Rich Invent MoneyThe Rich Invent MoneyExample : Graham Bell .Formation Of AT & T.Example : Graham Bell .Formation Of AT & T.

Every Person is Genius ,but excessive Fear & Self Doubt are the Every Person is Genius ,but excessive Fear & Self Doubt are the greatest Destructor of Personal Genius.greatest Destructor of Personal Genius.

Why Develop Financial I.Q. ?Why Develop Financial I.Q. ?

In today's changing world Job security CAN NOT be taken for In today's changing world Job security CAN NOT be taken for granted.granted.

Hence we Must have more OPTIONS.Hence we Must have more OPTIONS.MONEY IS NOT REALMONEY IS NOT REAL

In Today's Information Age Just Ideas and agreements are In Today's Information Age Just Ideas and agreements are exchanged to MAKE MONEY.exchanged to MAKE MONEY.

The Rich Invent MoneyThe Rich Invent MoneyFinancial Intelligence.Financial Intelligence.

To develop Financial Intelligence fallowing 3 skills needs to be To develop Financial Intelligence fallowing 3 skills needs to be Developed.Developed.

1)1) Skill to apply your mind , what others miss to see with their Skill to apply your mind , what others miss to see with their Eyes.Eyes.

2)2) Skill to raise Money :Investing is not buying. It is more case Skill to raise Money :Investing is not buying. It is more case of knowing.of knowing.

3)3) Skill to choose your advisors.Skill to choose your advisors.

Work To Learn – DON’T WORK FOR MONEYWork To Learn – DON’T WORK FOR MONEY

Specialization narrows your options and hence your EarningSpecialization narrows your options and hence your Earning

Abilities.Abilities.

The main management skills needed for Success are,The main management skills needed for Success are,

1)1) The management of CASH FLOW.The management of CASH FLOW.

2)2) The management of Systems ( Including yourself & time with The management of Systems ( Including yourself & time with family)family)

3)3) The management of People.The management of People.

4)4) Skill of selling & MarketingSkill of selling & Marketing

5)5) Communication skill and Most importantly,Communication skill and Most importantly,

6)6) We need to be a good Teacher.We need to be a good Teacher.

To be truly Rich , we need to be able to give as well as to To be truly Rich , we need to be able to give as well as to receive.receive.

Overcoming ObstaclesOvercoming ObstaclesThe five main reasons Financially literate people struggle to The five main reasons Financially literate people struggle to

became Financially Independent are,became Financially Independent are,

1)1) Fear of loosing Money : Fear of loosing Money :

2)2) CynicismCynicism

3)3) LazinessLaziness

4)4) Bad HabitsBad Habits

5)5) ArroganceArrogance

Overcoming ObstaclesOvercoming Obstacles To OvercomeTo Overcome

1)1) Fear of loosing MoneyFear of loosing Money : :

A) Start EarlyA) Start Early

B) Plan Your Retirement ( Hire Financial Planner )B) Plan Your Retirement ( Hire Financial Planner )

C) Be FocusedC) Be Focused

Winning means being unafraid to loose.Winning means being unafraid to loose.

2) 2) Cynicism Cynicism : Unchecked doubts & Fear creates a cynic.: Unchecked doubts & Fear creates a cynic.

Cynic Criticizes, Winners Analyzes.Cynic Criticizes, Winners Analyzes.

3) 3) LazinessLaziness ; Cure for laziness is to induce a little GREED. ; Cure for laziness is to induce a little GREED.

A little greed to have better life.A little greed to have better life.

Overcoming ObstaclesOvercoming Obstacles To Overcome,To Overcome,

4) Bad Habits : Developing Good Money habit is very important.4) Bad Habits : Developing Good Money habit is very important.

Example : Paying bill on the LAST DAY of due Period is Example : Paying bill on the LAST DAY of due Period is

A GOOD HABIT.A GOOD HABIT.

Paying You First Is A GOOD HABIT.Paying You First Is A GOOD HABIT.

5) Arrogance : Arrogance is defined as an EGO + Ignorance.5) Arrogance : Arrogance is defined as an EGO + Ignorance.

Arrogance always makes you to loose Money.Arrogance always makes you to loose Money.

Start Educating yourself by finding an Expert or a book on a Start Educating yourself by finding an Expert or a book on a subject where you know you are ignorant.subject where you know you are ignorant.

Getting StartedGetting Started 1) You need a reason greater than Reality.1) You need a reason greater than Reality.

a) I don’t want to work whole of my life.a) I don’t want to work whole of my life.

b) I don’t want to be Employee.b) I don’t want to be Employee.

C) I want control over my Time & LifeC) I want control over my Time & Life

d) I want Money to work for Me.d) I want Money to work for Me.

2) I choose daily.2) I choose daily.

I choose to be rich & I make that choice Every Day.I choose to be rich & I make that choice Every Day.

I choose to invest in Education & welcomes NEW Ideas.I choose to invest in Education & welcomes NEW Ideas.

3) Choose Friends Carefully.3) Choose Friends Carefully.

Choose Rich friends & Poor Friends carefully.Choose Rich friends & Poor Friends carefully.

Rich Friends to learn about inside trading, & From poor friends Rich Friends to learn about inside trading, & From poor friends

You can learn What not to Do.You can learn What not to Do.

Getting StartedGetting Started 4) 4) Master a formula and then NEW ONE.Master a formula and then NEW ONE.

In changing world learning New formula Quickly is the secrete of In changing world learning New formula Quickly is the secrete of Success.Success.

5) 5) Pay Yourself First.Pay Yourself First.

A) Don’t get into large Debt Position.A) Don’t get into large Debt Position.

B) When you come up short, Don’t dip into your savings or investment.B) When you come up short, Don’t dip into your savings or investment.

Let pressure inspire your Financial intelligence to come up with new Let pressure inspire your Financial intelligence to come up with new ways of Making Money to pay your bills.ways of Making Money to pay your bills.

6) 6) Pay your brokers wellPay your brokers well : : Take good care of those people who help you to Take good care of those people who help you to make money work for you.make money work for you.

Getting StartedGetting Started

7) 7) Be An Indian GiverBe An Indian Giver : :

How fast do I get my Money back?How fast do I get my Money back?

So in any investment recover your principle as quickly as possibleSo in any investment recover your principle as quickly as possible

8) 8) Assets buys luxuriesAssets buys luxuries::

Assets generates Income, Income buys Luxury items.Assets generates Income, Income buys Luxury items.

9)9) The need for HeroesThe need for Heroes : : When it comes Investing ,too many people make it When it comes Investing ,too many people make it sound hard. Instead find heroes (Experts )who will make it look easy.sound hard. Instead find heroes (Experts )who will make it look easy.

10)10) Teach and you shall receive itTeach and you shall receive it : : Teach , what you know to others who needs Teach , what you know to others who needs it and you will receive new ideas & finer distinction.it and you will receive new ideas & finer distinction.

To Do’sTo Do’s

Take ActionsTake Actions

DON’T PLAY IT SAFEDON’T PLAY IT SAFE

PLAY SMARTPLAY SMART

Who Said it?Who Said it?The book that rocked THE FINANCIAL WORLD! J.P. The book that rocked THE FINANCIAL WORLD! J.P. Morgan declares “ Rich Dad Poor Dad, a must read A Morgan declares “ Rich Dad Poor Dad, a must read A Must read for Millionaires. – Must read for Millionaires. – THE WALL STREET THE WALL STREET JOURNAL.JOURNAL.

The main reason people struggle financially is The main reason people struggle financially is because they have spent years in school but learned because they have spent years in school but learned nothing about money. The result is that people learn nothing about money. The result is that people learn to work for money …. But never learn to have money to work for money …. But never learn to have money work for them. – work for them. – Robert T. Kiyoaski.Robert T. Kiyoaski.

“ “ I love my children & want to ensure they get the I love my children & want to ensure they get the best education possible! Traditional schooling, while best education possible! Traditional schooling, while very important, is no longer enough, we all need to very important, is no longer enough, we all need to understand money and how it works.” understand money and how it works.” – Sharon – Sharon Lechter.Lechter.

ThanksThanks