Rich DadPoor Dad

an attempt to ppt the concept of

Robert T Kiyosaki

Rule # 1

Know the difference between an asset and a liability, and buy assets.

Rich people acquire assets. The poor and middle class acquire liabilities, but they think they are assets

and…

This is the only rule

Assets Liabilities

Expense

Income

Cash Flow pattern of an Asset

Assets Liabilities

Expense

Income

Cash Flow pattern of a Liability

Asset - Liability

• An asset is something that puts money into your pocket

• A liability is something that takes money out of your pocket

Assets Liabilities

Expense

Income

Cash Flow pattern of a poor person, or a young person at home

Pay checkJob

Taxes, Food

Rent, Clothes

Fun

Transportation

Assets Liability

Expense

Income

Cash Flow pattern of a person in the middle class

Job

Assets Liabilities

Expense

IncomePay check

Job

Taxes, Food Mortgage

Fixed Expense

Clothes, Fun

Mortgage

Customer Loans

Credit Cards

Cash Flow pattern of a person in the middle class…

Assets Liabilities

Expense

Income

Cash Flow pattern of a wealthy person

Assets Liabilities

Expense

Income

Cash Flow pattern of a wealthy person……

Dividends

Interest

Rental Income

Royalties

Stocks

Bonds

Notes

Real Estate

Intellectual Property

Assets Liabilities

Expense

Income

Financial Dream turning into a Financial Nightmare ….

So…

• Spending habits have caused them to seek more money

• The don’t even know that the trouble is really how they choose to spend the money they do have the real cause of their financial struggle

• More money seldom solves someone’s problems. Intelligence solves problems.

Assets Liabilities

Perceptions …

LiabilitiesAssets

Home

Home

Rich Dad

Poor Dad

Assets Liability

Expense

Income

Why so?

MortgageProperty TaxesInsuranceMaintenance

Mortgage

Assets Liabilities

Expense

Income

Poor Dad’s Financial Statement

Assets Liabilities

Expense

Income

Rich Dad’s Financial Statement

Assets Liabilities

Expense

Income

Why the Rich get Richer

Assets Liabilities

Expense

Income

Why the middle class struggle

So think ….

Compiled into ppt form by:

Akshara- prakash.lb@gmail.com

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