Rich Dad Poor Dad is a book for people who want to become rich. It has personally taught me many things and helped me earn a lot of money. Since my blogs are mainly about money, in this blog I will be mentioning the best quotes from the book. Hope these quotes will inspire you guys.

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**Quotes:**

**Chapter One: Lesson 1: The Rich Don’t Work for Money**

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If you can’t make up your mind decisively, then you’ll never learn to make money anyway.

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Opportunities come and go. Being able to know when to make quick decisions is an important skill.

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Most of the time, life does not talk to you. It just sort of pushes you around. Each push is life saying, ‘Wake up.

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Some just let life push them around. Others get angry and push back.

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But they push back against their boss, or their job, or their husband or wife. They do not know it’s life that’s pushing.”

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“Life pushes all of us around. Some people give up and others fight. A few learn the lesson and move on. They welcome life pushing them around. To these few people, it means they need and want to learn something. They learn and move on. Most quit, and a few like you fight.”

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lesson number one: The poor and the middle class work for money. The rich have money work for them.

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true learning takes energy, passion, and a burning desire. Anger is a big part of that formula,
 
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When it comes to money, most people want to play it safe and feel secure. So passion does not direct them. Fear does.”

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“Don’t worry about that for now. Just know that it’s fear that keeps most people working at a job: the fear of not paying their bills, the fear of being fired, the fear of not having enough money, and the fear of starting over.

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He understood that every person has a weak and needy part of their soul that can be bought, and he knew that every individual also had a part of their soul that was resilient and could never be bought. It was only a question of which one was stronger.

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And they have a price because of human emotions named fear and greed. First, the fear of being without money motivates us to work hard, and then once we get that paycheck, greed or desire starts us thinking about all the wonderful things money can buy.
 
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Money is in control of their emotions and their souls.”

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master the power of money, instead of being afraid of it.

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human’s life is a struggle between ignorance and illumination.

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He explained that once a person stops searching for information and self- knowledge, ignorance sets in.

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To spend your life living in fear, never exploring your dreams, is cruel.
 
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To work hard for money, thinking that it will buy you things that will make you happy is also cruel.
 
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“Learn to use your emotions to think, not think with your emotions.

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Confronting fear, weaknesses, and neediness by choosing our own thoughts is the way out.”

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Instead of just getting up and going to work because not having the money to pay your bills is scaring you, ask yourself, ‘Is working harder at this the best solution to this problem?’

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Most people never see these opportunities because they’re looking for money and security, so that’s all they get.

**Chapter Two: Lesson 2: Why Teach Financial Literacy?**

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It’s not how much money you make. It’s how much money you keep.

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

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Most people fail to realize that in life, it’s not how much money you make. It’s how much money you keep.

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in the long run, it’s not how much money you make. It’s how much you keep, and how many generations you keep it.

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“If you want to be rich, you need to be financially literate.”

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Accounting is possibly the most confusing, boring subject in the world, but if you want to be rich long- term, it could be the most important subject.

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rule number one. It is the only rule. This may sound absurdly simple, but most people have no idea how profound this rule is. Most people struggle financially because they do not know the difference between an asset and a liability.

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“You mean all we need to know is what an asset is, acquire them, and we’ll be rich?” I asked. Rich dad nodded his head. “It’s that simple.”

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Keep It Simple, Stupid (or Keep It Super Simple)—

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“If you want to be rich, you’ve got to read and understand numbers.”

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“The rich acquire assets, and the poor and middle class acquire liabilities.”




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“assets put money in your pocket.” Nice, simple, and usable.


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An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket.

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This is really all you need to know. If you want to be rich, simply spend your life buying assets.

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So if you want to be rich and maintain your wealth, it’s important to be financially literate, in words as well as numbers.

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In financial reporting, reading numbers is looking for the plot, the story of where the cash is flowing.

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In 80 percent of most families, the financial story paints a picture of hard work to get ahead.


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most likely an increase in cash will just result in an increase in spending.

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What is missing

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is not how to make money, but how to manage money.

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what you do with the money once you make it, how to keep people from taking it from you, how to keep it longer, and how to make that money work hard for you.

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people often work harder than they need to because they learned how to work hard, but not how to have their money work hard for them.

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As their incomes go up, their expenses go up as well.


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They don’t understand that their trouble is really how they choose to spend the money they do have.

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It is caused by financial illiteracy and not understanding the difference between an asset and a liability.

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Intelligence solves problems.

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“If you find you have dug yourself into a hole… stop digging.”

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All too often, instead of trusting their inner wisdom, that genius inside, most people follow the crowd.

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It is that same fear, the fear of ostracism, that causes people to conform to, and not question, commonly accepted opinions or popular trends:

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Many financial problems are caused by trying to keep up with the Joneses.

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hated the word “can’t.”

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“An intelligent person hires people who are more intelligent than he is.”


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A bigger home meant bigger expenses, and the cash flow kept going out through the expense column.

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The greatest losses of all are those from missed opportunities. If all your money is tied up in your house, you may be forced to work harder because your money continues blowing out of the expense column, instead of adding to the asset column—

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Loss of time, during which other assets could have grown in value. 2. Loss of additional capital, which could have been invested instead of paying for high- maintenance expenses related directly to the home. 3. Loss of education. Too often, people count their house and savings and retirement plans as all they have in their asset column. Because they have no money to invest, they simply don’t invest. This costs them investment experience. Most never become what the investment world calls “a sophisticated investor.” And the best investments are usually first sold to sophisticated investors, who then turn around and sell them to the people playing it safe.

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

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The asset column generates more than enough income to cover expenses, with the balance reinvested into the asset column.

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The asset column continues to grow and, therefore, the income it produces grows with it. The result is that the rich get richer!


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Their primary income is through their salary.

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Their expenses tend to increase in proportion to their salary increase: hence, the phrase “the Rat Race.”

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They treat their home as their primary asset, instead of investing in income- producing assets.

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they are loaded with liabilities and have no real assets that generate income.

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their only source of income is their paycheck. Their livelihood becomes entirely dependent on their employer.

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So when genuine “deals of a lifetime” come along, these people can’t take advantage of them because they are working so hard, are taxed to the max, and are loaded with debt.

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the most important rule is to know the difference between an asset and a liability.

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concentrate your efforts on buying income- generating assets.

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That’s the best way to get started on a path to becoming rich.

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Keep doing that, and your asset column will grow.

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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;


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The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family directly.

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Wealth is a person’s ability to survive so many number of days forward— or, if I stopped working today, how long could I survive?

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Although net worth often includes non- cash- producing
 
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wealth measures how much money your money is making and, therefore, your financial survivability.

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Wealth is the measure of the cash flow from the asset column compared with the expense column.

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Let’s say I have cash flow from my asset column of $ 1,000 a month. And I have monthly expenses of $ 2,000. What is my wealth? Let’s go back to Buckminster Fuller’s definition. Using his definition, how many days forward can I survive? 
Assuming a 30- day month, I have enough cash flow for half a month. When I achieve $ 2,000 a month cash flow from my assets, then I will be wealthy.

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So while I’m not yet rich, I am wealthy. I now have income generated from assets each month that fully cover my monthly expenses.

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If I quit my job today, I would be able to cover my monthly expenses with the cash flow from my assets.
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My next goal would be to have the excess cash flow from my assets reinvested into the asset column.

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as long as I keep my expenses less than the cash flow from these assets, I grow richer with more and more income from sources other than my physical labor.

**Chapter Three: Lesson 3: Mind Your Own Business**

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That secret is: Mind your own business.

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real assets fall into the following categories:• Businesses 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’s not a business. It becomes my job.• Stocks• Bonds• Income- generating real estate• Notes (IOUs)• Royalties from intellectual property such as music, scripts, and patents• Anything else that has value, produces income or appreciates, and has a ready market

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I also love stocks of small companies, especially start- ups, because I am an entrepreneur, not a corporate person.

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On the other hand, my real estate strategy is to start small and keep trading up for bigger properties and, therefore, delay paying taxes on the gain. This allows the value to increase dramatically.

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I generally hold real estate less than seven years.
 
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Once a dollar goes into your asset column, it becomes your employee.

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As your cash flow grows, you can indulge in some luxuries. An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first.

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the long- term rich, build their asset column first. Then the income generated from the asset column buys their luxuries. The poor and middle class buy luxuries with their own sweat, blood, and children’s inheritance.


**Chapter Four: Lesson 4: The History of Taxes and the Power of Corporations**
 
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THE HISTORY OF TAXES AND THE POWER OF CORPORATIONS

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It

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But what many people who have never formed a corporation don’t know is that a corporation is not really a thing. A corporation is merely a file folder with some legal documents in it, sitting in some attorney’s office and registered with a state government agency.

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It’s not a big building or a factory or a group of people. A corporation is merely a legal document that creates a legal body without a soul.

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It was popular because the income- tax rate of a corporation is less than the individual income- tax rates.

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For example, “1031” is jargon for Section 1031 of the Internal Revenue Code which allows a seller to delay paying taxes on a piece of real estate that is sold for a capital gain through an exchange for a more expensive piece of real estate.

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Real estate is one investment vehicle that has a great tax advantage.

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As long as you keep trading up in value, you will not be taxed on the gains until you liquidate. People who don’t take advantage of these legal tax savings are missing a great opportunity to build their asset columns.

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knowledge is power.

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with money comes great power that requires the right knowledge to keep it and make it multiply.

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The first lesson of having money work for you, as opposed to you working for money, is all about power. If you work for money, you give the power to your employer. If money works for you, you keep the power and control it.
 
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Each dollar in my asset column was a great employee, working hard to make more employees


**Chapter Five: Lesson 5: The Rich Invent Money**

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Yet the one thing that holds all of us back is some degree of self- doubt. It is not so much the lack of technical information that holds us back, but more the lack of self- confidence. Some are more affected than others.

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I have heard it called many things; guts, chutzpah, balls, audacity, bravado, cunning, daring, tenacity, and brilliance. This factor, whatever it is labeled, ultimately decides one’s future much more than school grades do.

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

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strongly urge students to learn to take risks, to be bold, and to let their genius convert that fear into power and brilliance.

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Today, wealth is in information.

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And the person who has the most timely information owns the wealth.

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How many different financial options can you come up with?”

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Financial intelligence is simply having more options.

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If you are the kind of person who is waiting for the right thing to happen, you might wait for a long time.

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The more real you think money is, the harder you will work for it. If you can grasp the idea that money is not real, you will grow richer faster.”

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The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth.

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Well, putting money away every month is a sound idea. It is one option— the option most people subscribe to. The problem is this: It blinds the person to what is really going on. It causes them to miss major opportunities for much more significant growth of their money. The world is passing them by.

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The problem with “secure” investments is that they are often sanitized, that is, made so safe that the gains are less.

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It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying.

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are. Failure is part of the process of success. People who avoid failure also avoid success.

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Intelligent people are those who work with or hire a person who is more intelligent than they are. When you need advice, make sure you choose your advisor wisely.

**Chapter Six: Lesson 6: Work to Learn—Don’t Work for Money**


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I have mentioned before that financial intelligence is a synergy of accounting, investing, marketing, and law. Combine those four technical skills and making money with money is easier than most people would believe. When it comes to money, the only skill most people know is to work hard.

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“You want to know a little about a lot” was rich dad’s suggestion.

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Rich dad explained to me that the hardest part of running a company is managing people.

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“Leadership is what you need to learn next,”

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“If you’re not a good leader, you’ll get shot in the back, just like they do in business.”

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Rich dad thought it best to go broke before 30. “You still have time to recover”

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I keep seeking the emerging nations.

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seek work for what they will learn, more than what they will earn.

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“Where is this daily activity taking you?”

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how come McDonald’s makes more money than you?” The answer is obvious: McDonald’s is excellent at business systems. The reason so many talented people are poor is because they focus on building a better hamburger and know little to nothing about business systems.

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He never understood that the more specialized you become, the more you are trapped and dependent on that specialty.

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The most important specialized skills are sales and marketing.

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I know of no other skills to be more important than selling and marketing.