SUMANTRA

1
SUMANTRA The Book Club

• Review by
• Shekhar Ruparelia
• MBA (2005-07)

27th July 2006
2
The Author

• Born and raised in Hawaii, Robert is
  fourth-generation Japanese American.
• Joined U. S. Marine Corps and went to Vietnam as
  a helicopter gunship pilot.
• In 1977 he founded a company that brought to the
  market the first nylon and Velcro "surfer"
  wallets.
• Robert created the board game CASHFLOW, which
  teaches the game of money.

Robert Kiyosaki
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The Co-Author

• She joined what was then one of the big eight
  accounting firms
• Became the CFO of a turnaround company in the
  computer industry
• Tax director for a national insurance company
• Founder and Associate Publisher of the first
  regional woman's magazine in Wisconsin

Sharon Lechter
4
Does school prepare children for the real world?

• "Why should I put time into studying subjects I
  will never use in real life?"
• The richest people didn't get rich because of
  their education. (MJ, Madonna, Bill Gates)
• Credit cards

5
The two worlds

• Poor Dad I can't afford it
• Rich Dad How can I afford it?
• Poor Dad Study hard so you can find a good
  company to work for.
• Rich Dad Study hard so you can find a good
  company to buy

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Lesson 1 The Rich Don't Work for Money

• The 10 cent push
• The Pattern
• The comic-book library
• Mike and I averaged 9.50 per week over a
  threemonth period. We paid his sister 1 a week
  to be the librarian.

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Lesson 2 Why Teach Financial Literacy?

• You must know the difference between an asset and
  a liability, and buy assets.
• The definitions Financial Aptitude
• Schools were designed to produce good employees
  instead of employers

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Lesson 3 Mind Your own Business

• Ray Kroc anecdote
• I traded real estate and small stocks
• Company advice I would not encourage anyone to
  start a company unless they really want to.

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Lesson 4 The History of and The Power of
Corporation

• Financial IQ requires 4 broad areas of expertise
• No. 1 is accounting. What I call financial
  literacy.
• No. 2 is investing. What I call the science of
  money making money.
• No. 3 is understanding markets. The science of
  supply and demand.
• No. 4 is the law.

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Lesson 5 The Rich Invent Money

• "Now what can you do?" How many different
  financial options can you come up with?

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Lesson 6 Work to Learn - Don't Work for Money

• Specialization
• I recommend young people to seek work for what
  they will learn, more than what they will earn.

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Five Reasons for Losing

• Reason No. 1. Overcoming the fear of losing
  money.
• Reason No. 2. Overcoming cynicism.
• Reason No. 3. Laziness.
• Reason No. 4. Habits.
• Reason No. 5. Arrogance.

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Getting Started

• 1. I NEED A REASON GREATER THAN REALITY
• 2. I CHOOSE DAILY INVEST FIRST IN EDUCATION
• 3. CHOOSE FRIENDS CAREFULLY
• 4. MASTER A FORMULA AND THEN LEARN A NEW ONE
• 5. PAY YOURSELF FIRST
• 6. PAY YOUR BROKERS WELL
• 7. BE AN "INDIAN GIVER"
• 8. ASSETS BUY LUXURIES The power of focus
• 9. THE NEED FOR HEROES The power of myth
• 10. TEACH AND YOU SHALL RECEIVE

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Criticisms

• Self advertisement
• Put all your eggs in one basket
• Anecdotal
• Endorser of MLM or Network Marketing
• Finally, speaks out against traditional educations

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THANK YOU