This document summarizes key concepts from the book "Rich Dad Poor Dad" by Robert Kiyosaki. It discusses that the rich make money work for them through assets rather than working for money like the poor and middle class. The types of assets and income are described as well as cashflow patterns that distinguish the poor, middle class, and rich. The importance of financial literacy and understanding how money works is emphasized. Overall, the document provides a high-level overview of the main strategies for becoming wealthy according to the book.

2. Recipe to Become
Rich
Book Review of Rich Dad Poor Dad
Written By Robert Kiyoski
Presented By Pratibha Mishra

4. Some Books and Stuff by Robert
Kiyosaki and Sharon Lechter
• Rich Dad. Poor Dad.
• Cash-flow Quadrant
• Cash-flow Game
• Cash-flow, The E-Game
• Rich Dad’s Guide to Investing
• Retire Young. Retire Rich.
• Rich Kid. Smart Kid.

5. Rich Don’t work for
money
• The poor and the
middle class work
for money
• The rich think of
ways to make
money work for
them

6. Why Teach Financial Literacy?
• Money cannot work for you unless you
understand how money works
• The current education system does not
teach how money works
• Most “educated” people do not know or
do not understand the basics of money
management

7. Assets vs. Liabilities
• Asset: Puts money in your pocket
• Liability: Takes money away from you

8. Types of Assets
• Paper: Stocks, Bonds, Mutual Funds, and
Insurance (Portfolio Income)
• Real Estate: Residential and Commerical
properties (Passive Income)
• Businesses: (Passive Income)

9. Types of Income
• Portfolio Income: Derived from paper assets –
easiest to manage
• Passive Income: Derived from real estate or
royalties from patents
• Earned Income: Paycheck – highest taxed type
of income

10. Cashflow

11. Cashflow Patterns
• The Poor: Spend every penny, no assets and
only liabilities
• The Middle Class: As income increases so does
the amount of debt
• The Rich: Assets that pay for themselves, have
control over expenses and little or no personal
liability

12. How The Poor Live
They only have small incomes and small expenses
Income
Statement
Balance
Sheet
Income
Expenses
Assets = Zero Liabilities = Zero
$
The
Wealthy

13. How The Middle Class Live
They buy expenses and liabilities they think are
assets
Income
Statement
Balance
Sheet
Income
Expenses
Assets
Liabilities
Assets
$
The
Wealthy

14. How The Wealthy Live
Income
Statement
Balance
Sheet
Income
Expenses
Assets
Liabilities
$ Poor and
middle class
income

15. Mind your own business.
• Business that do not require my presence.
I own them, but they are managed or run by
other people. If I have to work there it is a not
a business.
“It becomes my job.”

16. The Rich Invent Money
Accounting. HOW?!!!
1. Financial Literacy
2. Investment Strategies
3. The Market - Supply and Demand (Learn
how to exploit the market)
4. The Law

17. Financial strategy
Rich and Poor Dad
The Rich with
corporation
People who work
for corporation
1.Earn Earn
2.Spend Pay taxes
3. Pay taxes Spend

18. Two main vehicles to achieve
financial growth
Real Estate
Small StocksSmall Stocks

19. How???
• Inspire people to learn more.
• Let people know it is easy if foundation is strong
• Show that anyone can achieve great wealth
• Show that there are millions of way to achieve
your goals.
• Show that it’s not rocket science.

20. **WORK TO LEARN
DON’T WORK FOR MONEY
Learn the management skills of success:
• Manage Cash-flow.
• The Management of system
(including Work Life balance)
• Manage People.

21. Overcoming Obstacles

22. Obstacles like…
Cont….

23. Cont….

24. Laziness
Cont….

25. Cont….

27. Keys to become wealthy….
1. Don’t work for money**
2. Become financially literate
3. Mind you own business
4. Understand the tax laws and the use of
corporations as a tax shelter
5. Invent money
6. Work to learn – Don’t work for money**