Rich Dad Poor Dad

"Rich Dad Poor Dad" by Robert T. Kiyosaki

The author had two dads. One was highly educated (Poor Dad) and the other had never finished the Eighth Grade (Rich Dad). Both dads had conflicting views on money.

1. Rich people don't work for money

2. Learn financial literacy
If you want to be rich, you need to develop financial literacy. An asset earns you money and a liability burns your money. One example of liability is a car, it loses 25% of its value the day you drive it off the lot. In addition, you have many other expenses such as loan repayments, insurance, registration, running and maintenance costs.

Learn the difference between asset and liability and think how to create income generating assets.

3. Mind your own business
Along with your day job, start some business side by side.

4. Taxes
The way rich people protect themselves from heavy taxes is by corporations.

5. The rich invent money
Learn how to manage risk. An investment is not risky. Not knowing how to manage an investment is risky.

6. Work to learn - not for money

7. Action plan for getting started
These are the steps to awaken your financial genius:
a. You need a big dream.
b. Use the power of choice. You could sit at home and watch TV all day or you could take a course of financial planning. The choice is yours.
c. Choose your friends carefully.
d. Keep learning.
e. Pay yourself first - spend money on assets before you do anything else with your pay cheque.