Rich Dad Poor Dad Summary in just 11 mins (Action Items included in Description)

20 Actionable Steps from Rich Dad Poor Dad 🧠 1. Shift Your Mindset About Money Stop thinking like an employee and start thinking like an investor or entrepreneur. Instead of asking, “How can I earn more?” ask, “How can I make money work for me?” 💰 2. Learn Financial Literacy Commit to learning how money works: Understand income, expenses, assets, and liabilities. Track where your money goes each month and analyze whether it’s going toward assets or liabilities. 📊 3. Start Building Assets Begin accumulating assets that generate cashflow, such as: Dividend-paying stocks Rental properties Small businesses Digital products Royalties or intellectual property Even a small start counts. 🏠 4. Stop Calling Liabilities “Assets” Recognize that your house or car isn’t truly an asset if it costs you money every month. Before buying something, ask: “Does this put money in my pocket, or take it out?” 📈 5. Build a Personal Financial Statement Create two columns: Assets and Liabilities. List everything you own and owe. Update it monthly. Your goal: grow the asset column and shrink the liability column. 💼 6. Mind Your Own Business If you work for someone, that’s fine — but use your income to build your own assets on the side. Invest your savings in businesses, real estate, or side hustles that build your personal wealth, not just your employer’s. 💸 7. Reduce Unnecessary Expenses Cut spending on things that don’t generate value or income. Each dollar you save can become an investment seed that grows over time. 🧾 8. Learn How Taxes Work Study how taxes affect different income types: Earned income (job) is taxed highest. Passive income (investments, rent) and portfolio income (capital gains) are often taxed lower. Start understanding how to legally structure your finances to reduce taxes. 🏢 9. Consider Forming a Business or LLC A corporation or LLC can protect your assets and allow legitimate deductions (education, travel, business expenses). This is how the rich legally minimize taxes and build wealth faster. 📚 10. Commit to Lifelong Learning Read books, listen to podcasts, and take courses on money, investing, and entrepreneurship. Examples: The Millionaire Next Door, Think and Grow Rich, Cashflow Quadrant (Kiyosaki’s sequel). 🧍‍♂️ 11. Work to Learn, Not Just to Earn Take jobs that teach you valuable skills — sales, communication, leadership, investing, marketing — even if they pay less. Skills compound faster than salaries. 💬 12. Improve Your Communication & Sales Skills Being able to persuade, sell, and negotiate is one of the most valuable financial tools. Practice public speaking, pitching, or even start a small side hustle to develop it. 🧠 13. Increase Your Financial IQ Financial IQ = Knowledge of: Accounting Investing Markets Law Money psychology Dedicate time each week to improving one area. 💪 14. Face Your Fears About Money Don’t let fear of failure stop you from investing or starting something. Start small, learn from mistakes, and adjust. Experience is the best teacher. 🏘️ 15. Start Investing — Even Small Don’t wait for “someday.” Start with small investments: ETFs or index funds Fractional real estate or REITs Peer-to-peer lending Digital business ventures Consistency beats perfection. 🧩 16. Play the CASHFLOW Game Kiyosaki created a board game called CASHFLOW to teach financial literacy. Play it with friends or online — it’s a practical way to train your financial thinking. 👥 17. Surround Yourself with Financially Smart People Join groups, attend seminars, or network with investors and entrepreneurs. You become the average of the five people you spend the most time with. 🕵️‍♂️ 18. Study How the Rich Think and Act Observe how successful people manage and grow their money. Follow their mindset — they focus on opportunities, not obstacles. 📅 19. Set Monthly Financial Goals Examples: “I’ll save 20% of my income this month.” “I’ll buy one small income-generating asset this quarter.” “I’ll read one book about investing this month.” Small consistent actions compound. 🏁 20. Focus on Freedom, Not Just Riches Remember: wealth is not about having millions — it’s about having freedom. The goal is to have enough passive income from assets to cover your living expenses so you’re not dependent on a paycheck. 🔑 BONUS MINDSET “The poor and middle class work for money. The rich have money work for them.”