Notes taken while watching a speach by Robert Kiyosaki

Robert T. Kiyosaki is the author of Rich dad, Poor dad. He is famous for his idea of creating cashflow through passive income, the income that is generated while one does not need to work. I watched a video of his speech in Beijing.

1. Money is an idea: never say I cannot afford it, but ask how can I afford it.

2. Money doesn't make you rich-->high pay job doesn't make you rich. Money management is what make you rich.

3. Two kinds of money problem: not enough and too much.

4. Getting rich is a team sports! Who is on your team? Attorney, accountant, and lots of other people. (The hardest thing "I" have ever had is talking with my attorney and accoutant when I have no money.) Who is your friend? Getting touch with other rich people.

5. The vocabulary rich people use and poor people use is different.

6. Three kinds of income: earned income (50% Tax in US); portfolio income (20% Tax in US); passive income (0% tax in US). The first one is that you work for money; last two are that money works for you. It's impossible to get rich by earned income. In China, the exact tax maybe different, but rich people getting rich is because the last two.

7. How to read a financial statement? The key is paying attention to the cash flow.

Asset is what put money into your wallet whether you work or not. Liability is what put money out of your wallet whether you work or not. So a house can be asset or liability depending on whether it makes money or consumes money, so is a car.

8. The boss, banker may trap in the mouse circle, too. If you have lots of liabilities, like house, car, nice furniture, nice clothes, watch(which is on your liability part in your financial statement), it is very difficult to get rich.

9. Asset: business, real estate, paper asset.

10. Getting into the game of investment: the fundamentals in $4,000 deal and $4,000,000 deal is the same, it is the financial statement.

11. We (Robert Kiyosaki) look 100 deal and do 1 deal in real estate.

12.Most people spend their lifetime in rat race. If you do not have enough money, (100,000 passive income), you will not allow to invest in the fast track according to the US laws.

13. Stock Market has three trends. Bull market (which goes up slowly), bear market (which goes down very quickly), and channel market (which vibrates at a certain price). Professional investor will make money in all three kinds of market through put and call options and short. You must know what you are dong.

14. Continue to push the education, change the mindset. The highest level of investment: make money with no money input and with no risk.