"Rich Dad Poor Dad" by Richard Kyosaki: Summary Essay

1162 Words5 Pages
Some people generate an adequate living working for others, some do quite well, while many people don't do well. It is estimated that less than 16% of Canadians have more than $100,000 in their retirement funds while 38% have less than $10,000. Using money to make money is more likely to generate success. Using assets to generate wealth is likely to generate financial success. This is the principle in which my group is is based upon. Kiyosaki explains money does not calm your fears when desire forces you to spend. You have to avoid the trap. Rich people often have a fear of losing it all. A job is a short term solution to a long term problem. You must master the power of money. When the donkey drags the cart with the carrot on a stick…show more content…
You often go into a restaurant and see a lot of things done wrong. Why can't the manager see these things? Because he is too busy working IN the business instead of ON the business. This had to be the most influential and empowering passage. When one is engrossed in improving the business....he or she must look back at the faults of the past and improve upon them. One must know the difference between an asset and a liability. Rich people acquire assets; the poor and middle classes acquire liabilities. Liabilities include a fancy boat, a fancy car and a fancy house. These drain your cash. Liabilities add to your expenses because they have to be supported financially. An asset is a stock portfolio that pays dividends and grows or a rental property that generates positive cash flow. You don't have to pay money to support an asset. It doesn't decrease in value. It adds to your income. Many can cook a better hamburger than MacDonald's. Well, it's MacDonald's that is making all the money. There is no sense cooking a better hamburger if you don't have the systems to get them out to the market. Focusing on your skills of building a better hamburger, or being a better dentist or better accountant is not the answer. You need to develop the skills of selling and delivering the hamburger or whatever you are selling. The main management skills needed for success are the management of cash flow. I

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