What Rich Teach

Their Kids
About Money That

The poor & middle class

work for money . The rich
have money work for them.

Poor Dad Vs Rich Dad

The love of Money is
root of all Evil
I cant afford it.
Study hard so that
you can find a good
company to work for
Money Play it safe,
Dont take Risk

The lack of Money is

Root of all Evil
How can I afford it ?
Study Hard so that
you can find good
company to Buy.
Money- Dont play
safe, Play it Smart.
Learn to manage
Risk.

Poor Dad Vs Rich Dad

Depends on
company/Government for
pay hike, medical
insurance, retirement
plan etc.
I am not interested in
Money
Our home is our largest
investment and our
greatest asset.

Believes in total financial

self reliance.

Money is Power.
My house is a liability
and if your house is
your largest investment
you are in Trouble.

There is a need.
Study Hard, Get Good Grades and you will Find a high
paying job with Great Benefits (Safe & Secure Jobs)

RAT RACE
Study Hard, Graduation, Post Graduation, Job, Marriage,
Children,Promotions/Jobchange,House, Cars,
Good School, Overtime/Part Time Jobs, Vacations

Fast Track
Bill Gates,Michale Jordon, Madonna..

There is a need.
Study Hard, Get Good Grades and you will Find a high
paying job with Great Benefits (Safe & Secure
Jobs)

IS A BAD ADVICE
The world has changed & Changing very fast
and current educational system has failed
to cope up with the change.
Education is the foundation of success so are
the Financial skills & Communication skills.

There is a need.
Financial Intelligence is the Mental Process via
which we solve our Financial Problems.
But there are different set of rules with which
Rich Plays compared to Poor & Middle
class.
Example : Down Sizing/ Right Sizing of The
Company.

Why Teach Financial Literacy ?

Retirement : We can work or Not Work and our wealth
grows automatically staying way ahead of inflation.
In life it is not important how much money you make, It is
how much Money you keep.
Assets : Puts Money in your Pocket.
Liability : It is something that takes Money out of a
Pocket.
Wealth : Persons ability to survive so many days Forward .

Poor /Middle Class Financial Statement

Income
Expenses
Pay Check. Taxes,
Mortgage
Fixed
Expenses
Assets

Liabilities
Home,
Consumer
Loans,
Credit cards

Rich Class Financial Statement

Income
Expenses
Dividends,
Interest,
Rental
Income
Assets
Stocks,
Bonds,
Real
Estate,IPR

Liabilities

Why Teach Financial Literacy ?

88997777
The way to get Richer is to increase the Cash
Flow from the Assets, keep the expenses
less than the cash Flow generated from
these assets.
Reinvestment process continues with more
and more income from Sources other than
the Physical labor.

Mind your Own Business

Profession & Business : McDonald Story
Financial Struggle is often directly the result of
People working all their life for some one else.
Owner or Share Holders of the Company
Government ( Taxes )
Banks ( Repayment of Loans )
Business revolves around the Asset column.

History of Taxes & Power of Corporation

Robin Hood : Collect it from Rich & Distribute it to the Poor.

Financial I.Q.
It is made up of knowledge from Four Broad Areas of Expertise .
1)
Accounting : Financial Literacy is the ability to read & understand
financial statements.
2)

Investing : Science of Money MAKING Money

3)

Understanding Market : Technical aspect of science of Supply

& Demand

4)

Law : To make advantages from various provisions in the law

for Growth of the Organization.

The Rich Invent Money

Example : Graham Bell .Formation Of AT & T.
Every Person is Genius ,but excessive Fear & Self Doubt are the
greatest Destructor of Personal Genius.
Why Develop Financial I.Q. ?
In today's changing world Job security CAN NOT be taken for
granted.
Hence we Must have more OPTIONS.
MONEY IS NOT REAL
In Today's Information Age Just Ideas and agreements are
exchanged to MAKE MONEY.

The Rich Invent Money

Financial Intelligence.
To develop Financial Intelligence fallowing 3 skills needs to be
Developed.
1)

Skill to apply your mind , what others miss to see with their
Eyes.

2)

Skill to raise Money :Investing is not buying. It is more case

of knowing.

3)

Skill to choose your advisors.

Work To Learn DONT WORK FOR MONEY

Specialization narrows your options and hence your Earning
Abilities.
The main management skills needed for Success are,
1)
The management of CASH FLOW.
2)
The management of Systems ( Including yourself & time with
family)
3)
The management of People.
4)
Skill of selling & Marketing
5)
Communication skill and Most importantly,
6)
We need to be a good Teacher.
To be truly Rich , we need to be able to give as well as to
receive.

Overcoming Obstacles
The five main reasons Financially literate people struggle to
became Financially Independent are,
1)

Fear of loosing Money :

2)

Cynicism

3)

Laziness

4)

Bad Habits

5)

Arrogance

Overcoming Obstacles
To Overcome
1)

Fear of loosing Money :

A) Start Early
B) Plan Your Retirement ( Hire Financial Planner )
C) Be Focused
Winning means being unafraid to loose.
2) Cynicism : Unchecked doubts & Fear creates a cynic.
Cynic Criticizes, Winners Analyzes.
3) Laziness ; Cure for laziness is to induce a little GREED.
A little greed to have better life.

Overcoming Obstacles
To Overcome,
4) Bad Habits : Developing Good Money habit is very important.
Example : Paying bill on the LAST DAY of due Period is
A GOOD HABIT.
Paying You First Is A GOOD HABIT.
5) Arrogance : Arrogance is defined as an EGO + Ignorance.
Arrogance always makes you to loose Money.
Start Educating yourself by finding an Expert or a book on a subject
where you know you are ignorant.

Getting Started
1) You need a reason greater than Reality.
a) I dont want to work whole of my life.
b) I dont want to be Employee.
C) I want control over my Time & Life
d) I want Money to work for Me.
2) I choose daily.
I choose to be rich & I make that choice Every Day.
I choose to invest in Education & welcomes NEW Ideas.
3) Choose Friends Carefully.
Choose Rich friends & Poor Friends carefully.
Rich Friends to learn about inside trading, & From poor friends
You can learn What not to Do.

Getting Started
4) Master a formula and then NEW ONE.
In changing world learning New formula Quickly is the secrete of
Success.
5) Pay Yourself First.
A) Dont get into large Debt Position.
B) When you come up short, Dont dip into your savings or investment.
Let pressure inspire your Financial intelligence to come up with new ways
of Making Money to pay your bills.
6) Pay your brokers well : Take good care of those people who help you to
make money work for you.

Getting Started
7) Be An Indian Giver :
How fast do I get my Money back?
So in any investment recover your principle as quickly as possible
8) Assets buys luxuries:
Assets generates Income, Income buys Luxury items.
9)
The need for Heroes : When it comes Investing ,too many people make it sound
hard. Instead find heroes (Experts )who will make it look easy.
10) Teach and you shall receive it : Teach , what you know to others who needs it
and you will receive new ideas & finer distinction.

To Dos
Take Actions
DONT PLAY IT SAFE
PLAY SMART

Who Said it?

The book that rocked THE FINANCIAL WORLD! J.P.
Morgan declares Rich Dad Poor Dad, a must read A
Must read for Millionaires. THE WALL STREET
JOURNAL.
The main reason people struggle financially is
because they have spent years in school but learned
nothing about money. The result is that people learn
to work for money . But never learn to have money
work for them. Robert T. Kiyoaski.
I love my children & want to ensure they get the
best education possible! Traditional schooling, while
very important, is no longer enough, we all need to
understand money and how it works. Sharon
Lechter.

Thanks