Rich+Dad,+Poor+Dad

Robert T. Kiyosaki had a unique opportunity to find out. Robert's father was an educator and public administrator. When Robert was a young boy, he and his friend, Mike decided they wanted to learn how to become rich. They started by trying to make (counterfeit) money.
 * Rich Dad, Poor Dad:** What is the difference in the world view and attitude of people who become rich compared to other people? What things do they do differently to have such different results in their lives?

Robert's father explained to the boys this was illegal. He also admitted he did not know how to become rich, but suggested the boys ask Mike's father how to go about it. So Mike's father, an independent businessperson, became a mentor to Robert, his "Rich Dad."

This book is the fascinating story of how the Rich Dad taught Robert the lessons he needed to learn to make himself financially independent. Robert has learned that our educational system is pretty good at producing employees, but not very good at producing people who are good at managing their finances wisely. He now teaches people how to apply the principles of becoming rich. In addition to publishing the information in this book, he has developed a game, CASHFLOW(tm) 101 to help people develop their financial intelligence.

Some of the ideas Robert presents reinforce those in other books we have reviewed. Like The Millionaire Next Door, Robert points out the difference between having a big salary and building wealth. Like The Richest Man In Babylon, Robert emphasizes the importance of paying yourself first.

Robert also has a definition of an asset versus a liability that is different from conventional accounting. Investors generally focus on accumulating assets and avoid liabilities. Simply stated, assets generate income or cash. Liabilities consume cash. Rich people accumulate assets. People who aren't rich accumulate liabilities. Some things that look like assets are actually liabilities - for example: a residence, a car, a boat. When we accumulate these things, we are not really accumulating wealth, we are consuming it. If we haven't accumulated sufficient assets and we acquire these "toy" liabilities, we are putting the cart before the horse. Instead, we should emphasize regularly acquiring stocks, bonds, tax lien certificates, rental real estate, and other investments. We also need to learn to build value and get some tax shelter by building our own business.



You will be reading this book as part of Personal Finance. We will be using this book to tie into the topics covered in class. You will be assigned a chapter (or more) each week and will be required to post discussion questions/answers online through our class wiki. You will be graded on your posts, which are required for this class.

At the end of the term you will be required to write a Book Summary of **__Rich Dad, Poor Dad__** and reflect on what the book has taught you -- in regards to your financial education.