Rich dad poor dad - Summary

Hi... As one of my friend asked for a small summary of one of my favorite book 'Rich dad poor dad' .. here I go .. (apologize for delay clouds :) )...

1. Describes what a poor parent teaches their children about money as oppose to what rich parents teach their children about money.

2. Poor and middle class work for money. Rich have money work for them.

3. Financial literacy - Money without financial intelligence is money gone soon.

4. Buy assets and reduce liability...but hardest thing is to differentiate between asset and liability

5. Cash flow of rich and poor people (one of my favorite topics of the book)

Assets - Put money to your pocket e.g. share, business etc.
Liabilities - Takes money out of your pocket e.g. home (yes, he challenges the very notion of home being the greatest investment, car etc.)

How to increase the asset quadrant and reduce the liability quadrant -

6. Describes Power of taxes. How rich use taxes to their advantage -

Rich -- Earn -> Spend -> Pay Tax

Poor -- Earn -> Pay Tax -> Spend

(see the reversal in order of Pay tax and Spend)

7. Practical tips on how to begin and act.

The great thing about the book is that its not a 'get rich quick' book. It doesn't teach you any shortcut for getting rich, but it teaches you the financial wisdom which can help you increase your wealth.