Rich Dad’s
Who Took My Money?
Why Slow Investors Lose and Fast Money Wins!
by Robert T. Kiyosaki, 2004In one of the best known parables that Jesus told illustrating the Kingdom of Heaven, three servants were given varying sums of money with the expectation that they would invest it and produce an increase. The servants that had gained the greatest ROI were called good and faithful. The one that gained nothing was called wicked and lazy. The principle of stewardship at the heart of this parable shows that those who would deal most faithfully with the resources that the Lord has given are the ones who invest and gain an increase which may then be put to the Lord’s use. (See Matthew 25:14-30; compare with Luke 19:12-26)
In Who Took My Money, the groundwork is laid for teaching people to become power investors. First, the principle concepts are introduced by contrasting them with the mindsets of people in various sectors of the economy. Finally, the concept of synergy is introduced to give potential investors a basic outline that they can use to further their financial education. Learning to combine assets for greater increase is a good goal for anyone who seeks to be a better steward to pursue.
- Part I: What Should I Invest In?
- Ask a Salesperson — Learn to distinguish between sound financial advice and a sales pitch
- Ask a Cattle Rancher and Then Ask a Dairy Farmer — Learn the difference between investing for capital gains and investing for cash flow
- Ask Your Banker — Learn to harness the power of financial leverage by understanding how to evaluate risk and returns on investment
- Ask Your Insurance Agent — Learn how to protect your investments
- Ask the Tax Man — Learn how the tax laws will affect your quadrant and how to make the most of the tax advantages that are available
- Ask a Journalist — Learn to determine the validity of any particular investment information: the fine line between lying and not telling the truth is personal responsibility; the truth is actually in the response to one question, will they guarantee their statements?
- Ask a Gambler — Learn to increase the velocity of your money by keeping your money moving: investing in assets, getting your money back while keeping control of the asset, and moving your money into another asset to repeat the process
- Ask Newton — Learn to follow the movement of the laws of nature through the market; which is to say, learn to watch and take advantage of trends
- Ask Father Time — Learn to be prepared for and to adapt to the changes that come with the passage of time
- Part II: Ask an Investor
- Four Reasons Why Some People Can’t Become Power Investors — The word
can’t
stops most people from trying; taking the easy way out keeps people poor while making things easy for others makes people rich; it is easier to get bad debt than good debt; people will invest in the promise of future capital gains rather than looking for an investment that pays guaranteed cash flow today - The Power of Power Investing — Rich Dad’s plan for combining three major asset classes (business, real estate, and paper assets) along with the use of various types of accelerators to improve the returns on the money invested
- Gambling Rather than Investing — The importance of looking for opportunities to buy assets that produce cash flow rather than capital gains
- How to Find Great Investments — Seven ways to find investments; four ways to analyze the investment; five considerations for each investment
- How to Be a Great Investor — Choose passive income over earned income; reduce expenses while increasing income; use leverage to accelerate increase; protect the investments with various types of insurance; develop an exit strategy that will increase value while avoiding additional expenses
- Conclusion: Winner or Loser? —
The game of money is not really about money, it is about how well you play the game
- Four Reasons Why Some People Can’t Become Power Investors — The word