Miranie F.

Dabon BBM

Entrep - Prelim Exam Permit #: 153546

Rich Dad Poor Dad

Introduction

His two dad has always different teachings in life. More specifically in

terms of money. The other dad who is highly educated and completed four

years in College with Ph. D. always told him to study hard in order for him to

find a good company where he can work to in the future while the other one

who did not finished the eighth grade always taught him to study hard so he

can find a company to buy. He is always wondering where he would like to

listen to since he don’t know exactly is telling him a good future.

The other dad who has a high degree in education doesn’t want to talk

about money and other one always motivating him to gain more money. So

he really cannot decide on where to listen since I think he wanted to have

both. A good education at the same time earning high money.

You can really tell that in the introduction of this book is more on

identifying what path you prefer to follow. But I think, it is more likely that

his rich dad wanted him to explore and learn different things in order for him
to learn and know how to become rich in the future. The thing is he still

trying to think and his two father is trying to imply.

The introduction is letting him think that there are two options he can

choose in life; it’s either he will go for security or learn how to make money

in the future. And he still on the process of learning what is the first step to

in order to become rich. And I’m sure we will find it out after we finish

reading the whole book.

Chapter 1 Review

In the first chapter, author and his best friend Mike want to have their

own business. At the early age of 9, they were determined to earn money on

their own. They’re trying to figure out how they can earn their own money.

The author decided to have a partnership with Mike. They were trying to

think what would be their business. Until they taught of making nickel out of

toothpaste tubes that they asked humbly from their neighbor. But then, they

failed. The author and Mike, asked an advice to his rich dad which is Mike’s

biological father. They were paid 10cents an hour for 3 hours every

Saturdays. But then, the author decided to quit or not asked for raised. That

is the beginning of the words that would teach them how to earn money,

how money works and the meaning of money of people’s life.

Though, the author had a hard time understanding the words of his

rich dad. He tried his best to understand and open his mind. I think, he is

really eager to learn however he cannot understand the teachings and was

disappointed of the 10cents per hour. But his rich dad let them choose

whether a raise or a moral lesson. Me, as a reader was having a hard time

also of what his rich dad’s words really mean. But I just keep on reading

until I figured out what he’s really in to. At first it’s really hard to understand

the “Rat Race” lesson. Then it made me realize that instead of working hard
for a little amount of money and put big amount of money in someone else

pocket, why not let other work hard to put money in your pocket.

For me, it is kind of insensitive since it’s like a working cycle. If you

don’t want to work a lot of hours for a little money and you let other do it for

you. It’s like the same. You will be rich but others will be at the path that

you don’t want to be with. But I guess, that is the reality. If you want to be

rich, of course there are people that will be under you. In this world, we

have different standings in life. It is your choice if you want to be on top or

you will just be playing safe. Not taking risk. As long as you’re secured, that

you are receiving salary to feed your family, including the benefits then you

will stay as worker. But if you want to be on top then of course you take risk

to earn a bigger return.

Chapter 2 Review

In this chapter, this talks about taking risk is the key if you want to

get rich. The author then realize that the poor and the middle-class work for

money, fear, and greed because they were not taught to take risks. Also the

opportunities may come and go, and it’s always been recognize and grab it

while the poor and middle class is still playing safe. They just want to have

security. As long as they are earning and have a job that pays them, they

stick with that.

I’ve learned that in life if you want to level up the status of your life,

be a risk taker. Risking is not always just go with all the opportunities that

life might give you but it is also your stepping stone to achieve a much

better life. I mean, I’m not saying that being poor or middle is bad because I

also understand their point that they prefer to have assurance that they are

earning monthly to feed their family. That is why they settle for this.

Being a risk taker doesn’t mean also that you are not contented of

what you have. Life is full of challenges and that is one of them. I think it’s

the feeling that if you risk on something and you get something in return,

it’s the feeling that you did it, that you have another achievement again. I

think that is what the author realized in this chapter. That if you are just

busy of seeking money and security then you will just stay like that. While if
you try to understand and recognize the opportunities that life give you and

grab them, then it might change your life. Don’t be afraid of trying out new

things because it might push and lead you to a better chapter of your life.

There are a lot of things that we wish to have but we cannot get it or we

cannot be like that because we choose to stay and settle on what we

currently have. The author here is starting to realize what his rich dad was

trying to mean. And he is also trying to figure out how to do it.

Chapter 3 Review

In this chapter, the author and his best friend are now adults. Mike is

now the one who takes control of all his father’s business and currently

teaching his son who will took over the business once he retires in the

future. While with Robert the author, he was able to retire at the age of 47.

They had business meeting before in Chicago and talk about different

investments. Twenty five years later, most of the people they met in Chicago

was either in jail, dead or penniless. Now Robert says that there is only one

rule, you need to know the difference between assets and liabilities and to

make sure that you only control the assets. He also believe that you need to

have a knowledge and strong foundation in accounting. To make sure that

you do understand the meaning of assets and liabilities.

Now, I finally understand how important the accounting is. I thought

before that if you only have the basic knowledge of how to compute the

multiplication, addition, subtraction and division then it is easy for you to

build or manage your own business. You actually need to be wiser and have

a strong foundation in accounting because it will definitely help you, not just

you as a person but also your business. Robert also said that this is also one

reason why there are poor people because instead of controlling and make
your assets grow and keep your liabilities in minimum, the poor people do

the opposite. They have lots of liabilities while they have no assets.

I’ve also realize that building or managing a business is not that easy.

You need to be wiser and have enough knowledge on how to run your

business. Because if you don’t have knowledge about financial, even if you

have the money now there will be a bigger possibility that it will be gone

soon if you don’t have financial intelligence.

Chapter 4 Review

In this chapter, this talks about minding your own business. Robert

said that you should not mind other’s business. Instead, work hard to

become a boss and for your own business. He also points out Mcdonald’s as

an example of minding their own business. He said the Mcdonald’s may not

make the best hamburgers but they have the most valuable intersections

and streets in America. He also continue to discuss about assets, that a real

assets are anything that has a value like stocks, bonds, mutual funds,

income-producing real estate, notes, royalties from intellectual property, etc.

This chapter also reveal Robert’s investment preferences. He prefer to invest

on real estate and stocks.

I’ve learned that in making your status better or to be on top, you

need to focus and think your own business. Because if you keep on thinking

your competitor or other people’s business there is a big possibility that you

will be out of focus. You will be focusing on how to be like them or how to

compete them instead on focusing on how to improve your own business.

You also need to determine on how and what should be the business that

will really fit your preference because building a business is not that easy. I

you want to invest on something you need to also to make sure that you

completely understand how that investment works. In opening a business or

planning on investing there’s a lot of factors that you need to consider. In

business you need to study or you can make a feasibility study to see if that

business is feasible while in investment you need to make sure that you

have knowledge on that investment and of course to do background check to

make sure that you will not be scammed.

It might be risky but with a knowledge on how it works, I know you

will achieve it if you will work hard for it.

Chapter 6 Review

In this chapter, the author develops the concept of self-doubt. He said

that every people has its own talent but because of self-doubt and fear

people can’t let it all out. He also said that not all the educated or the smart

one will be always on top but mostly those adventurous one. And those

people who have lots of money, most of them just sit around and wait for

opportunities to happen. He also discuss the importance of education

because he said that “a trained mind is a rich mind”. He analyzed that there

are two types of investors and they have different mindset. The one who

goes for the packaged investment and the other one who customize

investments to suit their objectives.

What I understand on this chapter is that we as human have different

abilities and capabilities. The only thing that we cannot let it all out is that

the dilemma and the thinking of maybe it will not work. Some of us are

afraid to try new things. We always think to play safe. Because we always

think of “what ifs”. What if we fail? We are afraid to take risk. But we didn’t

think that if we take risk and push for it with courage there is a bigger

possibility of a great return.

Sometimes, we need to explore new things because that is the only

way we will learn and enhance our capabilities. The outcome might be bad
or good but the thing is we learn new things. And by keep exploring new

things, we keep on learning and grow as an individual. It will definitely help

us to boost our self-esteem and confidence. We don’t just sit and wait for

opportunities. We need to work for our future. We are the only one who can

create our future. And also education can help us a lot because if we go to

school we learn a lot of things, it’s just that you don’t need to depend

everything on it. You need to do and extra mile as well.

Chapter 7 Review

In this chapter, the author discusses the skills an individual needs to

develop financial success in life. He gives an example of a woman who had a

Master’s Degree in English Literature but is offended when the author

suggests her learn to sell and direct marketing. Robert says that if someone

wants to get rich, he must learn how to manage his cash flow, people, and

the system. And this is why selling and marketing is an important part of

financial education. He also mentions that communication skill is another

important skill to acquire to be financially successful in life.

I’ve learned that you don’t need to stop learning. If you think that you

are good enough because you have a good and stable work already, there

are still things that you still don’t know how to do. It’s not always the money

that should motivate you to do things or to work for. Sometimes, you work

hard for you learn and to grow more. You need to expand your learnings and

go out of your comfort zone.

In order for you to achieve success, there are a lot of factors that you

need to consider. A lot of lessons to learn. I think the author or Robert

Kiyosaki wants us to realize to don’t limit our things but just staying on one

place. He wants us to explore and if possible try those things that once

feared us to try. Being secured is not how life’s teaches us but I think it’s for
us to try lots of things. It’s a different feeling if you limit yourself for security

than achieving goals by exploring new things. Be confident and trust yourself

that you can do it. Let that talent and capability of yours shine.