Rich Dad's Guide to Investing - Book Summary & Review

"Rich Dad's Guide to Investing" is a practical and insightful book that teaches how investors think, the mindset needed for financial success, and how to create lasting wealth through smart investments.

Robert Kiyosaki explains the difference between being rich and acting rich, focusing on financial education, building assets, and strategic planning. This book is ideal for those looking to move beyond earning a paycheck and into the world of smart, long-term investing.

If you want to get smarter about money, Rich Dad's Guide to Investing is a good book for beginners, offering 6 basic rules to increase your financial IQ and build real wealth.

Rich Dad's Guide to Investing by Robert Kiyosaki teaches you what the rich know about money. This book is a clear guide to investing, business building, and smart money moves for beginners. It shows how real estate, assets, and businesses create wealth over time.

The main idea of the book is to shift your mindset from security to wealth creation. Kiyosaki explains how the poor focus on security, while the rich study investments and take smart risks. His guide challenges the old rule of "go to school, get a job," and replaces it with Rule #1: focus on assets.

The book highlights 6 basic rules for making good investments. It explains the difference between assets and liabilities in simple terms. Kiyosaki also talks about how billionaires think differently about money and how beginners can apply these lessons.

While the book offers important lessons, it does not give specific stock tips or real estate tricks. Some readers find the advice too general or feel excluded from rich investment opportunities. However, it still serves as a strong starting point to boost your financial IQ.

If you feel lost about how to start investing or building a business, this book offers real guidance. It shows you how to study investments, increase your financial IQ, and make smarter moves with your money according to Kiyosaki's rules. His wit and real-life examples make it easier for beginners.

Book: Rich Dad's Guide to Investing

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Book Summary

Compared with Buffett, Soros, and other tycoons, Robert Kiyosaki, a Japanese-American who has not made much money and idolizes Trump, has nothing special. But such a set of books has been at the top of the sales list many times. It is worth thinking about it when you have time.

This article is mainly an excerpt from the text. Best-selling authors tend to repeat the same content over and over again. So, I think it is enough to just flip through it. The 4 stars are based on a casual flip. If you want to read it carefully and analyze it carefully, this book is not worth 4 stars.

1. "Most people are not investors, but speculators or gamblers. They buy, hold, and then pray for prices to rise. They live in the hope of a bull market, and at the same time, they are worried about the possibility of a market crash. Real investors can make a fortune whether the market is rising or falling." Real investors win by being able to make money according to market changes, not when the market conforms to their own guesses. "Real investors are always prepared for any situation, while non-investors are guessing what will happen in the future and when it will happen."

2. "Mature investors need to have 3Es, namely education, experience, and sufficient cash." The essence of education is a self-learning ability. Experience is gained by daring to try and accumulating time. Sufficient cash depends on open source and management.

3. "You can play golf all your life, but you can only play rugby for a few years. In this case, why not choose a game that will accompany you for a lifetime at the beginning?" It is easy to see the problem clearly, but it is difficult to make the right choice.

4. "If someone can't explain an investment to you clearly in two minutes, then either you don't understand it, he doesn't understand it, or neither of you understands it. In any case, you'd better give up this investment." It is the KISS principle. In the first half of the year, a friend asked me to borrow money to invest in a project and told me that it was a medical waste treatment project participated in by the local prosecutor, health director, and hospital director. Naturally, I invested the money directly. A good project with a truly high return rate must have one or two special points, which can be understood in one sentence.

5. "You can spend your whole life learning the basics of investing. Investing sounds complicated at first, but it will become simple later. The simpler investing is, or the more basic knowledge you learn, the richer you will be, and the less risk you will have." A tall building must have a ten-thousand-foot foundation, and a big tree must have deep roots. The more you learn, the more you earn.

6. "The more mistakes a person makes, the more he learns from them. Behind every mistake, there is a magical power hidden." This sentence talks about the main way to gain experience in 3E.

Main Plot Summary

"Rich Dad's Guide to Investing" teaches how the wealthy invest differently by building businesses, understanding taxes, and creating assets that generate passive income, helping readers shift their mindset for lasting financial success.

The book explains that the rich focus on building businesses and buying real assets, not chasing job security or saving money alone. This pushes readers to rethink the old advice of "go to school and get a good job."

Kiyosaki describes three types of investors: sophisticated, inside, and ultimate. He shows that each level offers more control, less risk, and better returns, helping readers move past fear and confusion about investing.

Readers learn that real assets are things like businesses, real estate, and stocks that pay money back, while liabilities like fancy homes often drain money. This new view helps clear up a major misunderstanding about wealth.

The book stresses building strong financial knowledge first, like understanding cash flow, reading financial statements, and spotting market changes, so that investing feels safer and smarter, not risky and overwhelming.

Kiyosaki urges readers to create businesses that invest for them, use debt carefully to grow wealth, and build assets that produce even more assets. This plan makes building wealth possible even without "insider" access.

The story ends by reminding readers that becoming wealthy is about learning, planning, and taking action, not about luck or guessing. It encourages readers to start small, learn fast, and stay focused on growing true assets.

Book Review

The message of this book:

• 1. Are you mentally prepared?
• 2. What kind of investor do you want to be?
• 3. How to create a strong business?
• 4. How do people who get rich by their own strength make money, and then how do they get more wealth?
• 5. How to start operations with insufficient funds, then how to make money, and finally, how to solve the problem of having too much money.　
• 90/10 Money Rule: 10% of people make 90% of the money. They know how to invest in four quadrants to obtain different tax incentives in terms of taxation, while ordinary investors usually only invest in one quadrant.　　

Real wealth is a way of thinking, not money in the bank.　　

Let my business invest for me. Most people are not rich because they invest as individuals rather than as business owners. Most people are not real investors, but bystanders or speculators. Real investors can make a fortune regardless of whether the market is booming or not, whether they win or lose, and whether the investment period is long or short.　　

Investment itself is not risky, but uncontrolled investment is risky.

Tax laws are unfair. They are made by the rich for the rich. If you want to get rich, you must use tax laws that apply to the rich.

Having a lot of money is as troublesome as not having enough money.

Rich investors pay close attention to both sides of things, while ordinary investors only see one side of the coin and not the other side, which makes rich investors richer and ordinary investors still ordinary.

One of the control tools of investors: self-control

Everyone wants to get rich when investing, but because some people are not rich, they are prohibited from investing in things that can make them rich. Only when you are rich can you invest in things that rich people invest in, so the rich get richer.

Because in reality, there are many more bad deals than good deals. If a person is not sober enough and treats all deals, whether good or bad, the consequences will be huge losses and terrible crises. 

To distinguish complex investments from good and bad requires sufficient knowledge and rich experience. You need to be sophisticated in distinguishing investment success and failure, and the reasons that lead to investment risks. But most people do not have this knowledge and experience.

Just having money does not mean you are a wise investor. They are rich but do not know how to invest safely to get high returns. All business activities are no different in their eyes, and they find it difficult to distinguish the pros and cons. So they prefer sanitized investments or hire a professional financial manager they trust to invest for them.

If you know what you are doing and keep a clear mind, the risk is low and the potential return is great.

Five stages to becoming a wise investor:

• 1. Are you ready to become an investor?
• 2. What type of investor do you want to be?
• 3. How to create a strong business?
• 4. Who is a wise investor?
• 5. The social return of wealth

Rethinking old ideas and seeking new ways to get rich is the beginning of a huge change in your life.

The level of mental preparation required to become a wise investor is similar to the mental preparation required to climb Mount Everest or to become a monk. The only reason to start a business is to invest like the rich do, and to have your business buy assets for you.

Research corporate and tax law

People usually have three reasons to invest:

• 1. Security
• 2. Comfort
• 3. Wealth

reflects a person's value orientation, and one ranking is not necessarily better than the other. However, choosing which one is the most important part of you will have a significant and far-reaching impact on the life you choose. 

One of the reasons why the 90/10 money rule works is probably because 90% of people put comfort and security before wealth.

How do you see the world?

Change your money mindset to change your money reality.

The more security you need, the more scarcity you will have in your life.

In life, the more competition there is, the more scarcity there is.

The more a person wants to get more material, the more skills they need, the more they need to be innovative and cooperative.

A person suddenly has a lot of money and then goes bankrupt because they still only see one side of the story. That is, they still manage money the same way they always did in the past, which is the most basic reason why they struggle but are still poor. They only see the world of scarcity.

A large part of self-control is changing one's internal money mindset. Many people are frightened by the panic caused by the lack of money, which takes over and dominates their lives, and affects their attitude towards money and risk. 

One of the main reasons that prevents people from becoming rich is that they tend to worry too much about things that are unlikely to happen.

If you don't have a plan when you have a lot of money, then you will lose all your money and return to your original plan and the world of no money, which is the world that 90% of people are familiar with.

Investing means different things to different people.

Many people don't really understand investing, so investing is often confusing.

Investing is a plan, not a product or process. Investing is very personal. Investing is like planning a trip. Many people who think they are investors rely entirely on investment tools. They think they must rely on securities or real estate and use these two as investment tools. 

Therefore, they struggle to find investments that they like and ignore the development of an investment plan. These people are investors who travel in circles and never use investment tools to reach their destination. I need a plan, and this plan will determine the different types of investment tools I need.

You don't need to spend money to make money; you just need to spend words. The difference between rich people and poor people is the different words they often use. 

Not knowing the definition of professional words and using words with incorrect definitions is the real reason for long-term financial difficulties. Using the vocabulary of the rich can not only make money, but more importantly, keep money.

The problem with being young is that you don't know what it feels like to be old. Once you know what it feels like to be old, you will plan your financial life completely differently. 

The problem with many people is that they only plan until retirement. It is not enough to plan until retirement; you need to have the opportunity after retirement. If you are wealthy, plan for at least three generations.

It is not what we say out loud that determines our lives, but what we whisper to ourselves.

Words form thoughts, thoughts form reality, and reality becomes life. If you want to change a person's external reality, you need to first change his internal way of thinking, which in turn requires changing, improving, and updating the vocabulary used.

Investing is not what most people think it is. Investing is a boring plan, a process of getting rich through mechanical operations. Investing is just a plan that combines a fixed procedure, strategy, and a series of measures that can make people rich, all of which almost guarantee that you will become rich.

Why is it so difficult for most people to follow a simple plan? Because following a simple plan is boring and dull. It is human nature to get bored easily doing the same thing over and over again. Therefore, they always seek exciting and interesting things to do. 

Their lives are spent in a process of alternating between monotony and fun. That is why they do not become rich. They cannot stand to follow a simple and boring plan to get rich day after day.

In most cases, passive, mechanical investment systems will beat investment systems composed of people. Most investors prefer intuitive analysis methods in making investment decisions. In most cases, intuitive investors often make wrong decisions or are beaten by almost purely mechanical methods.

Human judgment is far less than we think.

Purely mechanical stock selection methods are better than 10% of stock investment experts. Even if you know nothing about stock selection, as long as you use mechanical, non-intuitive investment analysis methods, you can defeat those so-called well-trained and educated investors.

Investing is a mechanical, dull, and simple process. The simpler you think, the less risk you take, the more you can rest assured, and the more money you can make.

Most investors focus on personal experience rather than basic facts or basic interest rates. They value intuition over facts.

Most investors prefer complex programs to simple programs. They always have the idea that programs that are not complex or difficult are not good programs.

Simplification is the best principle for investing. We make one failed investment after another without internal consistency and a basic investment strategy.

Investment experts and ordinary investors make the same mistakes.

The only way to succeed in investing is to pay attention to and study the long-term results of investments, try to find one or a series of investment methods and strategies that make sense, and then invest under the guidance of these two. It is necessary to clarify the superiority and importance of strategies in investing, rather than just focusing on the investment itself.

The older the data you have, the more accurate your judgment of investment will be.

Creating your own company and buying real estate and stocks through a business company has been a good way to make money for at least 200 years.

Find a method that can make you rich and then do it. When you deviate from your simple plan and change direction to pursue the temptation in front of you, disaster will happen.

The key to making money is to be methodical and persistent. If measured in money, the spirit of methodical persistence is usually priceless.

Our enemy is ourselves.

Insurance plays a pivotal role in anyone's life plan. The biggest trouble with insurance is that when you need it, you can never buy it. Therefore, think about what you need in advance and then buy the corresponding insurance.

First, set realistic goals, and as you accumulate knowledge and experience, constantly improve and perfect your plan. Remember to start the marathon by jogging.

Whether you work for yourself or for others, if you want to be rich, pay attention to your own business.

Life is a cruel and ruthless teacher, and it teaches you lessons through punishment.

Many young people in the world are determined to become rich. The problem is that many people like them do not succeed because they do not understand what security and real financial abundance are. Too impulsive and reckless.

If you yourself are vague about your investment plans, it will be difficult for your advisor to figure out how to help you.

Explore concepts that you have never thought about before.

Many people are used to living within their means and saving for a rainy day, so they never know that their lives can be better. They never think about what their possible financial situation should be like, and never think that their spending is wasteful.

The secret to staying young and energetic is to keep finding new goals as you grow up and then keep growing. The saddest thing is to see people belittle themselves because they lack confidence in what is completely possible in life. Many people live a simple life and think that this is financially savvy. 

In fact, it is financial moderation. As they get older, this dilemma will show on their faces and attitudes towards life. The most important discovery people make in the process of learning to make plans is to understand the various financial situations that may occur in their lives. This is the most valuable.

The purpose of making different levels of planning is to understand the possible financial situations in the future.

Security, comfort, and wealth are all important. But security and comfort should still be considered before wealth, even if wealth is your first choice. If you want to be rich, then you need to have all three plans.

For most people, the amount of investment is measured in money, but if you look closely, you will find that it is actually calculated in time. And of the two assets, time is the most valuable. Poor people measure value in money, while rich people measure value in time.

The less money a person has, the tighter he holds on to his money. In real life, money itself has little value, so as soon as he has money, he wants to use it to exchange for something valuable. The more people value money, the less valuable the things they buy with money. 

This may be why they become poor. Many such people become rich by being stingy, but in the end, they may become very rich, but they will still be very stingy.

Following a plan and investing money step by step is the best way for most people to invest. But if you want to gain wealth, you must invest in something more valuable than money, that is, time. Rushing to make money will eventually cost you money and time. 

Invest first to learn something. If you want to get into the wealthy investment class, you should plan to invest more time than you do in the other two levels. Many people cannot get beyond the safety and comfort levels because they are unwilling to invest the time, but this is a personal decision we all have to make. 

A person should at least have a safe and stable, or comfortable and affluent, financial plan. It is really dangerous for a person to commit to the wealthy plan without these two basic plans. Of course, there will be a very few who succeed, but not many people will.

Investing in the safety and comfort levels should be as mechanical or as formulaic as possible, and should not require constant thinking. All you do is give your money to a broker whom you believe has a good reputation, and all they have to do is follow your plan. These two investment plans must be simple.

There is no risk-free thing in life, only low-risk things, and the same is true for investing. But remember the cost of investing: the safer an investment is, the more time it will take if the investment is to bring in money. In the investment world, the cost is measured in money and time.

Investment is risky, and there are three reasons for this:

• 1. No special training on how to become an investor
• 2. Most investors lack control
• 3. Most people invest from the outside, not from the inside

When investing at a safe and comfortable level, external investment is very correct. This is why you are willing to give your money to an expert to invest on your behalf, because they are closer to the inside story. But if you want to gain greater wealth, you have to be more familiar with the inside story of the company you invest in than those entrusted investment experts.

We only see the excitement of investment on the surface, but we cannot see the deep things hidden behind this scene, which is the transaction behind the game. The transaction hidden behind is the real game.

People who rely on hard work and savings have no real chance of getting rich, because both their work income and savings will be taxed. They refuse to learn new things and find it difficult to see the other side of the coin.

There is a difference between the poor and the rich, which is reflected in the different education parents give their children.

Investing is not a race; you don't need to compete with others, and the financial life of competitors is always up and down, so you don't want to be the first. In terms of making money, you just need to work hard to be a good investor.

Basic principles of investment:

1. Find out what type of income the money from work belongs to. Salary income? Securities income? Passive income?
2. Convert your salary income into securities income or passive income as effectively as possible
3. Retain salary income by purchasing correctly, and convert salary income into frozen income or securities income (securities are an investment tool. Whether it is an asset or a liability depends on the decision of the investor, and it is necessary to distinguish between assets and liabilities)
4. The investor himself is the real asset or liability
5. Real investors can always plan ahead, but non-investors always want to guess what will happen in the future and when it will happen. (Business opportunities and deals are plentiful. You can make deals that others give up and make them into good deals. Invest time to prepare. If you are prepared, opportunities and deals will appear every day and every moment of your life. If you cannot grasp every situation from time to time, as an investor, not the investment itself, you are taking risks.
6. If you are ready, then money will find you. The secret to success is people, people, and people. The most basic task of investors is to ensure that their money is safe and secure. The second step is to do everything possible to convert money into cash flow or capital gains
7. The ability to assess risks and returns

To reach the investment level of the rich, investors should have:

1. Education
2. Experience
3. Sufficient money

Keep it simple, stupid

Make things simple and understand the basic principles of doing things. First, formulate your safe and comfortable investment plan, and then hand these plans over to capable people to do them, and let them follow the ready-made procedures step by step. In the end, you will have to pay the price for becoming an investor who makes more money and less risk.

You should learn to take care of yourself, analyze what is really difficult and what can be achieved through hard work, and self-care is a basic human ability.

You can spend your whole life learning the basics of investing, but for most people, the biggest challenge is the time to invest.

It's not the investment itself that is risky; it's the investor.

If the ups and downs of the stock market affect your life, you are not an investor. First of all, you must be an investor who knows how to control yourself. If you can't do this, the changes in the story will control you, and one day you will lose your way in the ups and downs of the stock market. 

A real investor doesn't care about the direction of the market. A real investor can make money when the stock market goes up or down. So, self-control is the most important control principle.

To become a wealthy investor, you must first become a good business owner or learn to think like a business owner. Creating a company may be the best form of investment of all.

The benefits of learning to read financial statements:

1. Financial common sense can tell us what is important
2. When looking at investments, compare them with your own financial statements to see if they are appropriate. You need to understand how the financial statements of companies, stocks, open funds, bonds, or real estate will affect your personal financial statements. Can investing get me what I want?
3. Is the investment safe, and will it make money?

The best speculative opportunities come from the knowledge and understanding of accounting, tax law, commercial law, and corporate law. It is in these intangible fields that real investors can hunt for the biggest investment projects, so they must understand the income statement and balance sheet.

Whether something is an asset or a liability is determined by the cash flow at the time.

The riskiest investors are those who have no control over their financial statements. Among them, the most dangerous are those who think they have assets but are actually in debt; those who have to pay more expenses when they lack income; and those whose main source of income is labor. They are said to be risky because they are usually investors who are reckless and desperate.

The first step to financial freedom:

1. Understand how a personal financial statement will be filled out and operated
2. Control your own financial statements
3. Continue to achieve financial freedom
4. Understand how to manage your own funds by reducing taxes like other rich people. 

What an investor should do is to strive to obtain assets that can be paid for with other people's money. Professional investors are not only concerned about the rise and fall of the price of the investment object, but they will study financial data to understand the entire investment situation, and the information they get is often not discovered by ordinary investors. 

If you invest your time and energy into studying some of the details hidden in financial statements, you will gain huge wealth that only a few people can obtain. You will understand why the rich get richer and the poor get poorer.

In the business field, if you expect your career to be successful, school wisdom is far from enough; you also need street wisdom.

In frustration, you will find a true self:

1. Lying
2. Blaming others
3. Excusing responsibility
4. Giving up halfway
5. Denial

When people are frustrated because of mistakes and special events, one or more of the above personality traits will be revealed. If you want to gain wisdom from these mistakes, you must be responsible for controlling your thinking and constantly ask yourself, What have I learned from these mistakes?

People who avoid making mistakes or wasting opportunities to make mistakes will never have the opportunity to see the other side of the coin.

People who don't do much often blame others. They always hope that others will change. This is the reason why they are depressed for a long time. They are depressed because they never learn experience and wisdom from their own lessons.

Learning to control your emotions is a lifelong process. This lifelong process also includes the process of taking risks, making mistakes, and being grateful to others.

The reason why I have the wealth today is that I am more willing to make mistakes than others and learn from them. Most people either don't want to make mistakes or make the same mistakes again and again without understanding the reasons. 

If you don't have enough experience in making mistakes or don't learn from your mistakes, then miracles are doomed to happen in your life.

Success is the ability to go from one failure to another without losing confidence. - Churchill

If you want to be truly rich, you should know when to save and when to spend money. The problem is that many people only know how to save and be stingy, which is like walking on one leg.

When you can distinguish the difference between the following concepts, you will find that you are more rational in investing and your financial knowledge will increase:

1. Good debt and bad debt
2. Good losses and bad losses
3. Good expenses and bad support
4. Taxes paid and tax benefits
5. The company you work for and your company
6. How to start a business, how to steadily develop a business, and let the public know about the business
7. The shortcomings of stocks, securities, open funds, businesses, real estate, insurance products, and various legal institutions, and when to use which products.

Five other conditions for super-rich people:

1. Dream
2. Dedication
3. Motivation
4. Data (information)
5. Money

In real life, the first three are the most important, which can help you get the information and money you need to become a super-rich person.

How to create assets?

There are two types of investors: one is an investor who buys assets, and the other is an investor who creates assets. If you want to solve the 90/10 mystery, you should become both types of investors at the same time.

Develop a business mind and learn how to transform this consciousness into assets that can generate assets. Many people have ideas that can make them rich, but the problem is that most people have not learned how to integrate business systems into their concepts. 

Many of their ideas are not formed or isolated. If you want to be one of the 10%, then you should build a business structure in your creative thinking.

Not only do you need to know how to create assets that can generate assets, but one of the main reasons why the most successful investors can become richer and richer is that they know how to transform their concepts into money.

Making a lot of money is more of a psychological process than a physical process.

Great ideas may not necessarily turn into wealth. To turn your ideas into wealth, you must have firm beliefs. Only those with strong will behind their ideas can turn great ideas into wealth. Your greatness is only discovered when you are at the end of your rope. It will turn your ideas into wealth. You may face difficulties many times in your life. 

When you have no ideas, no money, and are hesitant, if you can cheer up and keep moving forward, you will find that it is the power of the spirit that turns your ideas into wealth. The process of turning ideas into wealth is a human spiritual activity, not just an activity of human thought. 

When faced with difficulties, entrepreneurs will find their economic power. Finding your business's economic power and making it stronger is more important than forming an idea or starting a business.

In this world, there are many people with extraordinary ideas, but only a few have huge wealth.

Investment Control Principles:

• Self-control.
• Control two ratios: the income/expense ratio and the asset/liability ratio.

• Investment Management Control: team, mission, leader, cash flow, communication, system, law, product.
• Control taxes.
• Control the timing of purchase and sale.
• Patiently waiting for the right time can bring a "late but great pleasure."
• Control the brokerage business.
• Control the characteristics of entity, timing, and income (E-T-C).

Once you can analyze financial statements, you can be at ease in the kingdom of money and make money that ordinary people can't make. You need top accountants and legal advisors. Ordinary investors are stuck here

• Control the terms and conditions of the agreement
• Information channel control
• Control wealth return, charity, and wealth redistribution

Once you learn to make the first million, the next million will be easy.

The reason why most ordinary investors lose money is that it is easy to invest, but it is difficult to withdraw. If you want to be a wise investor, you need to know how to invest and how to withdraw your investment. Today, when I invest, one of the most important strategies I have to consider is the exit strategy.

Making an investment is like getting married. It is very exciting at the beginning, but if things don't go well, the pain of divorce is much greater than the excitement and joy at the beginning. So you must really realize that investing is like a marriage. It is often easier to get in than to get out.

When you make an investment, you should also have an idea of when to get out. In more complex investment types, the exit strategy is often more important than the entry strategy. When entering this type of investment, you should have a plan in mind, what will happen if the investment goes well and what will happen if it fails.

The wise investor is proficient in the financial knowledge of experienced investors and is familiar with the following laws:

• 1. Tax law
• 2. Corporate law
• 3. Securities law

Ultimately, we all have to pay taxes, so the timing of paying taxes is the most important. Understanding the law helps control the timing of taxes.

Investors have control, while the rest of us are gambling. Once you understand that the money game is a control game, you will focus on an important rule of life, not to make more money but to gain more control over money.

It is very important to understand the characteristics of different incomes, because the characteristics of various incomes separate the rich from the poor. Income characteristics control is the basic control, especially for those who want to get rich. When income characteristics are considered together with entities and timing, the difference is even greater.

What is safe for one party is dangerous for another. If you want to get rich, you must see both risk and safety, while ordinary investors only see one side.

Ordinary investors

1. Only one financial statement
2. Want everything to be obtained in a private name
3. Do not regard insurance as an investment, and seek diversified investments
4. Only hold monetary assets, including cash and savings
5. Pay attention to job security
6. Pay attention to professional education and avoid making mistakes
7. Do not pay attention to financial information, or hope to get free financial information
8. Think about problems in a way that is either good or bad, black or white, right or wrong
9. Focus on past indicators, such as the price-earnings ratio and the top interest rate
10. First, find a broker, seek investment advice, or invest alone without consulting anyone
11. Seek external protection, such as work, company, government, etc.

Intelligent investors

1. Have multiple financial statements
2. Do not want to get anything in a private name, but use corporate entities. Private residences and cars are not in their names.
3. Insurance is used as an investment product to avoid losses caused by risks.
4. Both soft assets and hard assets are owned. Precious metals can avoid losses caused by the government's mismanagement of the money supply.
5. Pay attention to financial freedom.
6. Pay attention to financial education and understand that making mistakes is part of learning.
7. Be willing to pay for financial information.
8. Consider problems from different angles.
9. Look for future indicators, such as trends, forms, management, and product changes.
10. Finally, find a broker and consult with the financial and legal advisory team before finding a suitable broker.
11. Pay attention to the cultivation of personality strengths such as self-confidence and independence.

Start with a small company and buy real estate as a resourceful investor. Use limited liability companies to operate companies and businesses to reduce taxes and protect assets.

Use your company to purchase assets for you.

Use pre-tax funds to purchase assets, and only pay taxes on net income. Ordinary people pay taxes on their total assets and purchase assets with net income.

The biggest weakness of people is being burdened by money.

Using your spare time to create a company, you can learn:

1. Social skills
2. Leadership art
3. Cooperation skills
4. Tax law
5. Company law
6. Securities law

Cautious investors cannot obtain huge wealth. Only investors with a strong entrepreneurial spirit can make the world change dramatically and rapidly.

Many people would rather buy assets than create assets. The reason is that they cannot let entrepreneurial spirit dominate their minds and are unable to transform creativity into endless wealth.

There is no successful entrepreneur who is penniless.

A company needs entrepreneurial spirit and a corporate mission. Only in this way can the company succeed. Especially in the start-up stage, companies need a sense of mission.

Business activities are teamwork activities. Investing is also a teamwork activity. If people want to become savvy or more sophisticated investors, they must invest collectively.

• Cash flow management
• Communication management
• system management
• Legal management
• Product management
• Savings are not an investment

Why do rich people go bankrupt?

1. People who grew up in poverty don't know how to manage large amounts of money
2. When people have money, happy emotions can be like drugs that excite people
3. When you have money, some friends and relatives will want to get close to you
4. People who get rich overnight become investors without any investment knowledge or experience
5. Worry about gains and losses
6. Don't know the difference between good and bad spending. The main reason for creating assets is to increase good spending. Control your spending.

Those who don't change their mindset about money only see one side of the coin. Even if they do make some money, they may never see the other side, a world of plenty.

Reading Notes

Rich Dad's Guide to Investing by Robert Kiyosaki was an interesting take on business and investing. 

While there are certainly things that can be taken away from it, the book overall is not as well written as I would like. 

He tended to ramble at times, and he repeated himself way too much. I felt as though the 400 or so pages could have been cut in half. 

That being said, it was still an easy read for me, including many interesting anecdotes from his relationship with his "Rich Dad."

While the book claims to be about investing, a large portion of it is dedicated to comparing being an employee to owning a business. 

He makes it clear that he thinks the only way to get truly rich is to own your own business. While he doesn't give many specifics as to how to go about doing this, he does provide a lot of motivation for prospective entrepreneurs. 

He also goes into great detail on what he believes are the advantages of creating a business. Many of them include the way tax law treats businesses and individuals differently, and some of the advantages that can be gained by investing as a business.

Some great tidbits can be found if you look for them as you go through the book. Here is one that applies to anyone hoping to start their own business: "Rule number one in becoming an entrepreneur is to never take a job for money. Take a job only for the long-term skills you will learn." 

This, I think, is great advice for someone who wants to run their own business.

In general, money is ultimately never enough of a reason to do something. You will be much happier if you are doing something you love. 

For someone who wants to run their own business, this is especially true. Take a job that will teach you something or allow you to work with someone you can learn from in a business. 

In Robert's personal experience, he took a job with Xerox in sales because they had the best sales training program at the time. This is the type of thing people should consider when choosing a new job.

While it didn't quite give me what I expected as far as learning about investing, Rich Dad's Guide to Investing was an interesting, if long, read. 

It was also good as a motivational book for someone looking to start a business at some point.