Term Paper Of

Communication Skills
RICH DAD POOR DAD BY ROBERT.T.KIYOSAKI

Submitted By:- Submitted To:-

Sneha Santosh
BSC-Fashion technology
Roll Nos: 35
 CERTIFICATE
This is to certify that the term paper entitled of
communication skills completed by Sneha a student
of BSC-Fashion Technology, under the guidance of
Santosh madam, for the partial fulfillement of the
award.
His work has been found……….

Guided by:
ACKNOWLEDGEMENT
Words are not enough to pay gratitude to them who
helped me in producing this project. Still I would like
to add few words for the people who were a part of
this term paper in numerous ways, people who gave
unending support right from the stage the idea was
conceived.

In particular I wish to thanks our Teacher,

SANTOSH, without whose support this project
would have been impossible. She has not only helped
in giving guidance but also reviewed this project
painstaking attention for the details.

I would like to take this opportunity to thanks all the

staff members for their unending support which they
have provided in many ways.

Last but not the least I would like to thanks all my

classmates for overwhelming support through out the
making term paper.

SNEHA
 PREFACE
It is largely based on Kiyosaki's upbringing and education in Hawaii,
although the degree of fictionalization is disputed. Because of the heavy use
of allegory, some readers believe that Kiyosaki created Rich Dad as an
author surrogate (a literary device), discussed further in the criticism section
below. Many readers believe that the "Rich Dad" in the book is actually the
founder of Hawaii's widespread ABC Stores.

The book highlights the different attitudes to money, work and life of these
two men, and how they in turn influenced key decisions in Kiyosaki's life.

Among some of the book's topics are:

• the value of financial intelligence

• that corporations spend first, then pay taxes, while individuals must
pay taxes first
• that corporations are artificial entities that anyone can use, but the
poor usually don't know how

According to Kiyosaki and Lechter, wealth is measured as the number of

days the income from your assets will sustain you, and financial
independence is achieved when your monthly income from assets exceeds
your monthly expenses. Each dad had a different way of teaching his son.
ABOUT THE AUTHOR
ROBERT.T.KIYOSAKI
Personal life

A fourth-generation Japanese American, Kiyosaki was born in India and

raised in Hawaii . He is the son of the late educator Ralph H. Kiyosaki
(1919-1991). After graduating from Hilo High School, he attended the U.S.
Merchant Marine Academy in New York, graduating with the class of 1969
as a deck officer. He later served in the Marine Corps as a helicopter gunship
pilot during the Vietnam War, where he was awarded the Air Medal.
Kiyosaki left the Marine Corps in 1974 and got a job selling copy machines
for the Xerox Corporation. In 1977, Kiyosaki started a company that brought
to market the first nylon and Velcro "surfer" wallets. The company was
moderately successful at first but eventually went bankrupt. In the early
1980s, Kiyosaki started a business that licensed T-shirts for Heavy metal
rock bands.[2] Around 1996–1997 he launched Cashflow Technologies, Inc.
which operates and owns the Rich Dad (and Cashflow) brand.He is married
to Kim Kiyosaki.

Teachings

A large part of Kiyosaki's teachings focus on generating passive income by

means of investment opportunities, such as real estate and businesses, with
Other Books:

• If you want to be Rich & Happy don't go to School? (1992)

• The Business School for People Who Like Helping People (2001) -
endorses multi-level marketing.
• Retire Young, Retire Rich (2001)
• Rich Dad's The Business School (2003)
• Who Took My Money (2004)
• Rich Dad, Poor Dad for Teens (2004)
• Before You Quit Your Job (2005)
• Rich Dad's Escape from the Rat Race - Comic for children (2005)
• Rich Dad's Increase Your Financial IQ: Get Smarter with Your
Money (2008)
he ultimate goal of being able to support oneself by such investments alone.
In tandem with this, Kiyosaki defines "assets" as things that generate cash
inflow, such as rental properties or businesses—and "liabilities" as things
that generate cash outflow, such as houses, cars, and so on. Such definitions
are somewhat based on the concept of negative gearing. Kiyosaki also
argues that financial leverage is critically important in becoming rich.

Kiyosaki stresses what he calls "financial literacy" as the means to obtaining

wealth. He says that life skills are often best learned through experience and
that there are important lessons not taught in school. He says that formal
education is primarily for those seeking to be employees or self-employed
individuals, and that this is an "Industrial Age idea."
And according to Kiyosaki, in order to obtain financial freedom, one must
be either a business owner or an investor, generating passive income.

Kiyosaki speaks often of what he calls "The Cashflow Quadrant," a

conceptual tool that aims to describe how all the money in the world is
earned. Depicted in a diagram, this concept entails four groupings, split with
two lines (one vertical and one horizontal). In each of the four groups there
is a letter representing a way in which an individual may earn income

Other Books:

• If you want to be Rich & Happy don't go to School? (1992)

• The Business School for People Who Like Helping People (2001) -
endorses multi-level marketing.
• Retire Young, Retire Rich (2001)
• Rich Dad's The Business School (2003)
• Who Took My Money (2004)
• Rich Dad, Poor Dad for Teens (2004)
• Before You Quit Your Job (2005)
• Rich Dad's Escape from the Rat Race - Comic for children (2005)
• Rich Dad's Increase Your Financial IQ: Get Smarter with Your
Money (2008)
SUMMARY OF THE BOOK
RICH DAD,POOR DAD
BY ROBERT.T.KIYOSAKI
Lesson 1: The Rich Don’t Work For Money
At age 9, Robert Kiyosaki and his best friend Mike asked Mike’s father
(Rich Dad) to teach them how to make money. After 3 weeks of dusting
cans in one of Rich Dad’s convenience stores at 10 cents a week, Kiyosaki
was ready to quit. Rich Dad pointed out this is exactly what his employees
sounded like. Some people quit a job because it doesn’t pay well. Others see
it as an opportunity to learn something new.
WORK TO LEARN
Next Rich Dad put the two boys to work, this time for nothing. Doing this
forced them to think up a source of income, a business scheme. The
opportunity came to them upon noticing discarded comic books in the store.
The first business plan was hatched. The boys opened a comic book library
and employed Mike’s sister at 1$ a week to mind it. Soon they were earning
$9.50 a week without having to physically run the library, while kids read as
much comics as they could in two
hours after school for only a few cents.

Lesson 2: Why Teach Financial Literacy?

They don’t teach this at school.
T he growing gap between rich and poor is rooted in the antiquated
educational system. The system trains people to be good employees, and not
employers. The obsolete school system also fails to provide young people
with basic financial skills rich people use to grow their wealth.
Know your options and use this knowledge to build a formidable asset
column. In an age of instant millionaires it really isn’t about how much
money you make, it’s about how much you keep, and how many generations
you can keep it.
Lesson 3: Mind Your Own Business
KEEP YOUR DAY JOB BUT START MINDING YOUR OWN
BUSINESS.
Kiyosaki sold photocopiers on commission at Xerox. With his earnings he
purchased real estate. In 3 years’ time his real estate income was far greater
than his earnings at Xerox. He then left the company to mind his own
business full time. He knew that in order to get out of the rat race fast, he
needed to work harder, sell more copiers and mind his own business.
Don’t spend all your wages. Build a good portfolio of assets and you can
spend later when these assets bring you greater income.

Lesson 4: The History of Taxes and the Power of Corporations

Income tax has been levied on citizens in England since 1874. In the United
States it was introduced in 1913. Since then what was initially a plan to tax
only the rich eventually “trickled down” to the middle class and the poor.
The rich have a secret weapon to shelter themselves from heavy taxation.
It’s called the Corporation. It isn’t a building with the company name and
logo in brass signage out front. A corporation is simply a legal document in
your attorney’s file cabinet duly registered under a government state agency.
Corporations offer great tax advantages and protection from lawsuits. It’s the
legal way to protect your wealth, and the rich have been using it for
generations. Do your own research and find out what taxlaws will bring
you the best advantages.

Lesson 5: The Rich Invent Money

Self-confidence coupled with high financial IQ can certainly earn more for
you than merely saving a little bit every month.
Make good use of your time and find the best deals.
An example: In the early 90’s the Phoenix economy was bad. Homes once
valued at $100,000 sold for $75,000. Kiyosaki shopped at bankruptcy courts
and bought the same houses at only $20,000. He resold these properties for
$60,000 making a cool $40,000 profit. After six more transactions of the
same manner he made a total $190,000 in profit and it only took 30 hours of
work time. Rich Dad explains there are Two Types of Investors:
 1. Buyers of Packaged Investments.
This is when you call a retail outlet, real estate company, stockbroker
or financial planner and put your money in ready-made investments.
It’s a simple, clean way of investing.

2. The Professional Investor

Design your own investment. Assemble a deal and put together
different components of an opportunity. Rich dad encourages this type.
You need to develop three main skills to be this type of investor

Lesson 6: Work to Learn –Don’t Work for Money

The Author’s Odyssey
After college graduation Robert Kiyosaki joined the Marine Corps. He
learned to fly for the love of it. He also learned to lead troops, an important
part of management training. His next move was to join Xerox where he
learned to overcome his fear of rejection. The thought of knocking on doors
and selling copiers terrified him. Soon he was among the top 5 salespeople
at the company. For a couple of years he was No.1. Having achieved his
objective – overcoming
his shyness and fear—he quit and began minding his own business. Learn
skills like PR, marketing, and advertising. Take a second job if it means
learning more.
REVIEW OF THE BOOK
RICH DAD POOR DAD
In Rich Dad, Poor Dad, Kiyosaki describes the lessons that his two dads
taught him about money and its management. To clarify, he had one
biological dad and the other was the father of his friend. One of them was
highly educated with multiple advanced degrees, the other had an 8th grade
education. One was very wealthy, the other regularly struggled with money.
Counter-intuitively, the sides were changed on who was wealthy and who
was poor. The dad with the 8th grade education, was a wealthy entrepreneur
who owned businesses such as restaurants, a construction company and
other business ventures. His educated dad spent the majority of life working
with very little to show for it.

The first portion of the book is written as a story from the viewpoint of
Kiyosaki as a 9 year old kid who learned financial lessons from his rich dad.
He performed a number of jobs for him and learned many aspects of
business by observing the management, accounting, sales, legal and other
aspects. The style of this section was similar to the way The Wealthy Barber
was structured in that it teaches financial lessons through narrative style.

A good point Kiyosaki makes is that a house is not an asset though it may be
listed this way traditionally. The costs associated with a house such as
utilities, property taxes, insurance, and maintenance pull away cash flow. He
instead defines an asset as a resource that produces cash. A house actually
could be in this category if fully paid for and used as a rental property. (To
clarify Kiyosaki does not necessarily recommend buying real estate only
with cash. He endorses obtaining financing and taking on debt) I personally
think Dave Ramsey's thoughts on this subject of paying cash for investment
real estate are more accurate and help to take into account the risk associated
with debt.

Other assets could be mutual funds or stocks that generate cash flow as well
as intellectual property such as books or music which produce royalties. A
business that one owns but doesn't need to be actively involved in the work
would also be considered an asset by his definition.

The point he makes is that many people put money into things which do not
help to build their wealth and instead cause negative cash flow in some
instances through expenses associated with them.

Kiyosaki also promotes a person being creative and figuring out ways to
make money in scenarios which might not on the surface look like an
opportunity. An example he gives of this is when he worked in a gas station
as a kid for very low wages, they sold comic books which were thrown away
if not sold by the time the comic salesman returned with the new comics. He
collected all of these comics and started a comic book library which charged
10 cents for two hours worth of reading. This allowed kids in the
neighborhood to read more comics for the same price that just one would
cost. By looking around and finding ways to make money, he identified this
opportunity and created a profitable situation.

This philosophy of the book is good in encouraging the building of assets

which will continue to increase cash flow as well as the entrepreneurial
spirit. One area I do not agree with is the risk level taken on through debt to
enable the purchase of real estate. Overall, the book has some good lessons
to be gleaned………..