Rich dad poor dad book pdf download

Details of Rich dad poor dad

Book Name: Rich dad poor dad book
Authors: Robert Kiyosaki
Pages: 207
Publish Date: 1997
Language: English
Genre: Personal finance, entrepreneurship, business, investing, economics

Summary:

Now this book it's a very interesting book and it's actually not that practical in terms of it's not going to tell you how to invest your money or what funds to invest in or how to buy the property or anything like that but it's more about a state of mind

so Robert Kiyosaki had two debts where Ganesh had one dad his dad was what he describes in the book as his poor dad who was actually a university professor

his income wasn't actually that low but it was just his state of mind that made Robert Kiyosaki refer to missus pulled out his friend's dad who was a business owner was his Rich Dad and so things that this book points out basically there are two key points which

I think like some of the most important points of this book obvious if you want to know all about it you got to read it but very simplifying it into two key points which I take away from this book is most important

number one is their principle that the poor and in by saying poor he actually often includes people with middle you know middle-class incomes he uses the word poor as more of a state of mind

so the poor buy liabilities and the rich buy assets and what he means by this is when the poor get their paychecks they go out and buy things like cars big-screen TVs houses to live in themselves they buy things that are liabilities they're gonna bleed money you know a car after you've bought

It you still actually have to pay a lot of money to maintain it I actually just paid $800 to replace all my tires you know sucks okay and a house if you live in it you know you've got to pay property taxes on it you've got to pay maintenance fees to fix the plumbing when it breaks all these kind of things bleed money

but if you buy assets that could include investing in stocks that are going to pay you dividends every year so you spend you know $100,000 to buy a stock and then it pays you five thousand dollars five per cent every year gives you cash flow it's making your money work for you

that same goes for property the rich will die properties that they're able to rent out and get more income back from which covers all of the property taxes and maintenance and gives them a profit on top of that so that's an asset to

Robert Kiyosaki, he actually was one of the first people to start thinking of personal property which is for a long time being thought of as an asset but he argued that it was a liability

if it's you know just personal property that you live in unless it's a property with a business plan you know to rent and produce income from which in that case it would be turned into an asset, so that's the principle the poor by liabilities and the rich by assets

now the second principle from this book which I find very interesting is Robert Kiyosaki explains the different ways in which the poor and the rich pay taxes and it turns out that the poor actually pay a larger proportion of their income as taxes than the rich do and this is because the poor tend to be employees okay and in this, we're including middle-income people with 70 80 90 $100,000 annual income even several hundred thousand dollar incomes as long as you're an employee

you are in the same boat you're paying taxes at the federal income tax rate which starts at ten per cent at a very low income and goes all the way up to about thirty-nine percent now this year but the rich aren't employees they are owners of companies and if you own a company whatever that company does

whether it invests in real estate or buy stocks and other companies or may-maybe it actually manufactures something and provides some sort of service the money that the company makes will be paid to you in the form of the dividend and dividends are taxed at different rates to income often much lower rates especially

if you've held the shares for a longer period of time the dividend will be taxed at a lower rate they also earn some of their money through capital gains for example selling sort of buying a shareholding it for a period of time and then selling it

if you hold a stock for a period of time longer than a year the capital gain on that stock is taxed at a much lower rate than normal federal income tax and you know you can see this as a classic example of this is that Donald Trump in the presidential campaign he wouldn't release his tax returns Hillary Clinton criticized him for it during the debate and you know suggested that are you won't release your tax returns because you haven't paid any tax and he then very smugly said that makes me smart

he paid I got the figure here so here's a 1040 form from 2005 showed that he had made a hundred and fifty million dollars in that year and paid 38 million in federal taxes which was a tax rate of twenty four per cent now back in 2005 if you earned more than three hundred and twenty-six thousand dollars per year in salaried income okay

you were an employee of a company earning over three hundred two thousand dollars you would be taxed at a thirty-five per cent tax rate he only paid a twenty-five per cent no twenty twenty-four per cent tax rate on income of a hundred and fifty million

so how did he do it well you of course have you know he's earning money through dividends which can be taxed at a lower rate he's earning money through capital gains which is also taxed at a lower rate and in addition to that don't forget it's a business

so not all the money that comes into the business is money that is counted actually as profit there are a lot of ways of you know having deductions obviously any money you spend to develop your business is a deduction there are many many ways and the rich you know the rich are the ones who wrote the laws

so they obviously put in loopholes for themselves to be able to use lawyers and use the law to pay fewer taxes saying that though even though he behaved only twenty-four per cent he still paid more tax in one year than probably most people pay in their entire lifetime yeah here's a billy

Now I'm not saying this is right but it's just the way it is and if you want to know about this you can check it out in this book it really is very interesting and there are a lot of tips that you can use to help your personal finances both in you know

how to buy assets that are going to develop long-term income for you and structuring the way you do your business setting up a company to reduce your tax burden etc which by the way are all legal nothing in this book is illegal

He even cites a court case where the judge ruled that it is perfectly legal for a person to use the law to their advantage to reduce the amount of tax that they need to pay as long as they're following the law.

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