1. The Consumer Economy and “Rich Dad. Poor Dad.”
What The Wealthy Teach Their Kids
About Money
That The Poor And Middle Class Don’t.

2. The Consumer Economy Continuous growth through continuous consumption.
Most of us define ourselves in terms of:
How much and what we consume.
Our role in the making of what we consume.
Our ability to persuade others to consume.
Its philosophy is spreading throughout the world.
Is it truly satisfying?
“If your reason for becoming rich is to look rich, you will never become rich.”

3. The Consumer Economy
We are a free country, not necessarily a fair country. We are all free to fail.
We’re being taught to be “Good Employees.”
Go to school
Get good grades
Get a good “JOB”
Work hard
Maintain good credit
So we can consume lots of stuff.
“JOB” for most means “Just Over Broke.”
Should we be taught how to become “Wealthy?”

4. Most of the following ideas about money and wealth creation
are From Robert Kiyosaki and his partner and co-author,
Sharon Lechter. I highly recommend that study their writings
more deeply on your own.

5. Financial Intelligence
It is not your boss’ job to make you wealthy or secure. It’s her job to give you a paycheck nothing more.
Making more money will not solve your problem if money management is your problem.
Money is a drug.

6. Financial Intelligence
Money pushes you around. You will obey money.
Employers/Bosses
Landlords
Bill collectors
Tax collectors
Family and friends
Can you push back?
Are you smarter than your money?
Answer: Do you work for money, or does money work for you?

7. Financial Intelligence
When money works for you, every dollar is an employee. Each dollar works to bring you even more dollars while you’re asleep.
Passive Income: Interest, dividends, real estate income, royalties, residuals, annuities
Your money can work for you or it most certainly will work for someone else.
“What do you do?” versus “What do you own?”
The key is “What investments do you own that will bring you passive income?”

8. Financial Intelligence
“Being Rich” versus “Being Wealthy”
Being Rich is about how much money you possess in a specific moment in time.
Being Wealthy is about . . .
how much money you keep
how hard it works for you
how much is left for future generations (who know what to do with it)
Being Wealthy is about exploding your Passive Income. (How long you can survive without ever having to go to work?)

9. Financial Intelligence Rich Dad. Poor Dad’s Basic Philosophy
Know the difference between an ASSET and a LIABILITY, and only buy assets.
A True Asset gives a positive cash flow each and every month.
Live below your means, while constantly increasing your means.
Make your PASSIVE INCOME cover your Lifestyle Expenses forever.

10. Financial Literacy
Sadly, most of us have been taught to read words and books, but not numbers and financial statements.
Two key personal and business financial statements we all must be able to read.
The Income Statement shows the amount of money coming in and going out.
The Balance Sheet shows the balance of what you own and what you owe.

11. Financial Literacy (continued)
Income
Income
Statement
Expenses (Payments)
Assets (Own)
Liabilities (Debts)
Balance
Sheet

12. Financial Literacy (continued)
Income
Paycheck, dividends, interest,
rents, royalties, profits, advances
Income
Statement
Expenses (Payments)
Assets (Own)
Liabilities (Debts)
Balance
Sheet

13. Financial Literacy (continued)
Income
Paycheck, dividends, interest,
rents, royalties, profits, advances
Income
Statement
Expenses (Payments)
Taxes, mortgage/rent, cards, car, food, fun, rent, clothes, child care, insurance, medical
Assets (Own)
Liabilities (Debts)
Balance
Sheet

14. Financial Literacy (continued)
Income
Paycheck, dividends, interest,
rents, royalties, profits, advances
Income
Statement
Expenses (Payments)
Taxes, mortgage/rent, cards, car, food, fun, rent, clothes, child care, insurance, medical
Assets (Own)
Liabilities (Debts)
Balance
Sheet
Mortgage, car loan, credit cards,
school loans

15. Financial Literacy (continued)
Income
Paycheck, dividends, interest,
rents, royalties, profits, advances
Income
Statement
Expenses (Payments)
Taxes, mortgage/rent, cards, car, food, fun, rent, clothes, child care, insurance, medical
Assets (Own)
Liabilities (Debt)
Balance
Sheet
Stocks, bonds, notes,
real estate, business,
intellectual property
Mortgage, car loan, credit cards,
school loans

16. How The Poor Live They only have small incomes and small expenses
Statement
Expenses
Balance
Sheet
Assets = Zero
Liabilities = Zero

17. How The Poor Live They only have small incomes and small expenses
Statement $
Expenses
The
Wealthy
Balance
Sheet
Assets = Zero
Liabilities = Zero

18. How The Middle Class Live They buy expenses and liabilities they think are assets
Income
Income
Statement
Expenses
Balance
Sheet
Liabilities
Assets
Assets

19. How The Middle Class Live They buy expenses and liabilities they think are assets
Income
Income
Statement
The
Wealthy
Expenses $
Balance
Sheet
Liabilities
Assets
Assets

20. How The Wealthy Live They take the income of the poor and middle class, and buy assets that produce more income
Income
Income
Statement
Expenses
Balance
Sheet
Assets
Liabilities

21. How The Wealthy Live They take the income of the poor and middle class, and buy assets that produce more income
Income $
Poor and
middle class
income
Income
Statement
Expenses
Balance
Sheet
Assets
Liabilities

22. Rich Dad’s Cash Flow Quadrant (modified)
Note: Kiyosaki calls the D
Quadrant the “Big Business
Owner” Quadrant. I S

23. Rich Dad’s Cash Flow Quadrant (modified)
Developer
Employee
Works with Body.
Loves to Do.
Works with Mind.
Loves to Deal.
Investor
Self-Employed

24. Rich Dad’s Cash Flow Quadrant (modified)
Employee
You have a job.
Someone else is the boss.
Security before money.

25. Exempt vs Non-Exempt Jobs
Considered non-professional
Up to 100% doing routine, non-thinking tasks
Does only what is told to do
Has a pre-set schedule
Punches a time clock
Paid hourly
Receives overtime pay
Management/Exempt
Considered a professional
At least 50% of time using intellect, directing, creativity
Has discretion with decisions
Sets own work schedule
Receives a salary
No overtime pay

26. Rich Dad’s Cash Flow Quadrant (modified)
Employee
You have a job.
Someone else is the boss.
Security before money.
Self-Employed
You own a job. Loner/”boss.”
Perfectionists. Small bus.
owners: Drs. Restaurateurs.
Independence before money.

27. Rich Dad’s Cash Flow Quadrant (modified)
Employee
Developer
You have a job.
Someone else is the boss.
Security before money.
You own a system that others operate.
Coordinator. Delegator. Franchiser.
Use other people's time and money.
Self-Employed
You own a job. Loner/”boss.”
Perfectionists. Small bus.
owners: Drs. Restaurateurs.
Independence before money.

28. Rich Dad’s Cash Flow Quadrant (modified)
Employee
Developer
You have a job.
Someone else is the boss.
Security before money.
You own a system that others operate.
Coordinator. Delegator. Franchiser.
Use other people's time and money.
Self-Employed
Investor
You own a job. Loner/”boss.”
Perfectionists. Small bus.
Owners: Drs., restaurateurs.
Independence before money.
Your money works for you.
Make money with money.
Other’s liabilities are your assets.

29. Rich Dad’s Cash Flow Quadrant (modified)
Developer
Employee
Works with Body.
Loves to Do.
Works with Mind.
Loves to Deal.
Investor
Self-Employed

30. Rich Dad’s Cash Flow Quadrant (modified)
Developer
Employee
Job Security
Financial Freedom
Rat
Race
Side
Wealth
Side
Investor
Self-Employed
Financial Security
Ultimate Financial
Freedom

31. Sample Paths To Financial Freedom
Developer
Employee
Start
Rat
Race
Side
Wealth
Side
Investor
Self-Employed
End or
Start

32. Sample Paths To Financial Freedom
Developer
Employee
Start
Rat
Race
Side
Wealth
Side
Investor
Self-Employed
End

33. Sample Paths To Financial Freedom
Developer
Employee
Start
Rat
Race
Side
Wealth
Side
Investor
Self-Employed
End

34. In Which Quadrant Are You Headed?
What are your financial goals?
Which would you choose?
Job security
Financial security
Financial freedom

35. Systems and Discipline Are The Key For All Quadrants
“Am I hauling buckets or building a pipeline?”
Can you make a better hamburger than McDonald’s? Can you build a better system for making hamburgers than McDonald’s?
There are tons of great ideas, but few great systems.
You must also have the discipline to diligently work the system.

36. Some Final Thoughts Risk Money
It’s risky not to build a business or not to invest.
9 out of 10 business fail; so I need to fail 9 times.
Money
There are two problems associated with money: You can have too little or too much.
Money comes from inside out, not the outside in.
So, money is an idea, not a thing. Thus, your ideas can create money out of nothing.
You create money in your spare time. Creating ideas and searching for bargain assets.
It’s not how much money you make; it’s about how much you keep.

37. Some Final Thoughts (continued)
Emotional Intelligence
Practice “delayed gratification.”
Buy assets first, luxuries last.
Ask “how can I afford it?” This stimulates your creativity.

38. Some Books and Stuff by Robert Kiyosaki and Sharon Lechter
Rich Dad. Poor Dad.
Cashflow Quadrant
Cashflow Game
Cashflow, The E-Game
Rich Dad’s Guide to Investing
Retire Young. Retire Rich.
Rich Kid. Smart Kid.