Guide to Investing
Introduction
This book is for Investor who wants to learn to Invest and want to their money work for them. This book is not about Investing in which you will get the special tip, formula etc. In this book, the author explains his journey of Investor how he becomes a Sophisticated Investor. In the previous book rich dad poor dad was about his journey to Financial education and In cashflow quadrant, he explains his journey from 1973 to 1994. The author divided the journey to becoming a Sophisticated Investor in Five part and chapters. His rich dad helps him to acquire this knowledge.
PART 1 ( Are You Mentally Prepared to Be an Investor?)
Chapter 1 ( What Should I Invest In?)
The author came back from his tour of Vietnam. He was happy about that he has assigned a base near Hawaii. Mike call the author on lunch on his new house in Hawaii. The author was very excited to meet with Mike and his dad whom he calls his rich dad. He reached Mike house for lunch on Saturday. Mike welcomed the author. The author was in amaze by the beauty of Mike's house he was in thought how Mike and rich dad was able to this house near the Hawaii beach. Mike met the author with his seven months old baby and the author said, nice baby. Rich and Mike sat with an author. The author asked from rich dad how he was able to purchase this house. Rich dad replied him that It was the result of Mike investment. He comments that we had earned a lot of money in this 2 year that We had not made in previous 20 years. Mike replied on that it was the dad investment education which we got in the child. The author wishes to Invest with the rich dad. Mike told him that he will make the call to his stockbroker which will help you on investment. But the author wanted to Invest with the rich dad. They replied that he cannot Invest with them because he was rich. He told Mike to bring an Investment file currently they are looking to Invest. Rich dad highlights a paragraph and said author read that. The paragraph was this
“This investment is for accredited investors only. An accredited investor is
generally accepted to be someone who:
has a net worth of $1 million or more; or
has had an annual income of $200,000 or more in each of the most
recent years (or $300,000 jointly with a spouse) and who has a
reasonable expectation of reaching the same income level in the
current year.”
The author understands that he could Invest with him because he had $3000 Now. so he thought and said that so you Invest my money with your money rich dad replied that No. Write three E's to become sophisticated Investor. They are
1. Education
2. Experience
3. Excessive cash
The author understands that he has the education but not having experience and Excessive cash to become a sophisticated investor. so he decided to get these two E's which he doesn't have.
The Lesson of investment begins at a hotel with my rich he asked me did you decided which path is good for you. The author replied that From 9 to 18 I had learned from you about business then I left you 4 year for the college degree and 5 years of my duty. I left with 1 year in duty. I can be pilot in the small airline with the help of my friends after one year experience I can get the job in a big airline. So rich dad asked that you decided to do a job. The author replied No. Hence his first Lesson on investment started from making the decision.
Chapter 3 (The Choice)
The first Lesson on investment starts from this chapter. Rich dad explains that when it comes to the matter of money and investment. People have three choices.
These are
Chapter 8 (Getting Rich is Automatic...If You Have a Good Plan and Stick to it)
The chapter starts with rich dad told the author his stockbroker friends story. His friend told rich that In stock market 10 out of 9 Investor do not make money. They make money but lose it. Rich dad explains author that people think investment as Hollywood movie where they take a risk, make money and lose it. They think they are Investor. Rich dad said the author that investment is boring and there is no risk involved in it. The author asked the rich dad then why people do not get rich. Rich replied I also thought like this when aware of the question. Human being tendency to try new, exciting and twist things let them away from getting rich. Rich dad explains that people don't have simple formal for investment. But they think that investment plan is complex. Hence they end with having no money in their pockets.
If You want to purchase this book and other books mentioned in summary
GUIDE TO INVESTING BY ROBERT KIYOSAKI
http://tiny.cc/nv0hty
RICH DAD AND POOR DAD BY ROBERT KIYOSAKI
https://tinyurl.com/ybkgu8ew
CASHFLOW QUAFRANT BY ROBERT KIYOSAKI
http://tiny.cc/5a1hty
Chapter 2(Pouring a Foundation of Wealth)
The author comes to his quarter from Mike house where he watched that his roommate was drinking beer and watching TV he passes from the common space and get to his room where he thought about that why his dad was creating businesses when he was 9 years old. He realized that his poor dad had fired from his government job and struggling to earn his expenses and I was in the same condition we both have a college degree and can get a job. Now we both had to start from again.
When I was the child the rich teach me about business and how to manage them. But Now he had enough money. Now his lesson is on investment.
The Lesson of investment begins at a hotel with my rich he asked me did you decided which path is good for you. The author replied that From 9 to 18 I had learned from you about business then I left you 4 year for the college degree and 5 years of my duty. I left with 1 year in duty. I can be pilot in the small airline with the help of my friends after one year experience I can get the job in a big airline. So rich dad asked that you decided to do a job. The author replied No. Hence his first Lesson on investment started from making the decision.
Chapter 3 (The Choice)
The first Lesson on investment starts from this chapter. Rich dad explains that when it comes to the matter of money and investment. People have three choices.
These are
To be secure
To be comfortable
To be rich
Most of the people have first priority starts from secure and end at rich.
Rich also explains that money is not a cause of happiness by this example. He said that when he had no money. He was more unhappy than when I am rich. He also explains to the author that for becoming rich your priority of choice starts from rich and end at secure.
Chapter 4 (What Kind of World Do
You See?)
In this chapter, Rich explains that there are two types of problems one having too much money and having no money. Rich dad asked the author which problem you having too much money or having no money. He also explained that he was sadder in a problem of having no money as compared to having too much money.
To face the problem of having too much money you need to sacrifice your security and compete for it.
Chapter 5 (Why Investing Is
Confusing)
The chapter starts when the rich were calling some and discussing about investment. Suddenly, The author came hear the conversation of rich dad. He asked from rich dad after the call that is Investment complicated. He replied yes because Investment is different for different people. Eg. For some investment in stock and for it is not good etc. He explained the author about different categories and subcategories of it.
Chapter 6( Investing is a plan, not product or procedure)
The author was in San Francisco hosting a radio show on investment. A person called him for investment advice. He told the author that he had $10,000 to invest where should it Invest whether in the stock market or estate. The author asked the caller that Do you have a plan. He replied he wants just advice. He didn't require any plan for his investment. The author again asked the same question and got into his personal life. He frustrated and said that there is no need to interfere in my personal matter. I want some advice. Then the author explains that investment is not a product or procedure. It is a plan or it is a personal plan. The author explains with the help of his rich dad example. As there are many vehicles on the market. Some vehicle is suitable for some people but at the same time, it is not suitable for another people. So the investment is also similar to this example. The rich dad also had explained that after making a plan to need to decide your vehicle which makes you achieve the goal. But many people stay at one vehicle could not able to complete his goals. They didn't move from A place to B place Financially.
Chapter 7 (Are you planing to be rich or Are you planing to be poor?)
Rich dad said that most people are planning for becoming poor. The author asked but how. Then he said that because they are using poor words. The author didn't understand asked again. Rich dad explains that there are two types of words one is poor words and other rich words and many people uses poor words and they become poor. Rich dad gave an assignment to observe what he had said. He told the author to talk with his dad on launch and listen his words careful. After one week both author and rich dad met again and rich dad asked the author. Did you observe the difference. Author replied yes . Many people did not learn different words of finance. They learn only about poor word which make them poor.
You See?)
To face the problem of having too much money you need to sacrifice your security and compete for it.
Chapter 5 (Why Investing Is
Confusing)
The chapter starts when the rich were calling some and discussing about investment. Suddenly, The author came hear the conversation of rich dad. He asked from rich dad after the call that is Investment complicated. He replied yes because Investment is different for different people. Eg. For some investment in stock and for it is not good etc. He explained the author about different categories and subcategories of it.
Chapter 6( Investing is a plan, not product or procedure)
The author was in San Francisco hosting a radio show on investment. A person called him for investment advice. He told the author that he had $10,000 to invest where should it Invest whether in the stock market or estate. The author asked the caller that Do you have a plan. He replied he wants just advice. He didn't require any plan for his investment. The author again asked the same question and got into his personal life. He frustrated and said that there is no need to interfere in my personal matter. I want some advice. Then the author explains that investment is not a product or procedure. It is a plan or it is a personal plan. The author explains with the help of his rich dad example. As there are many vehicles on the market. Some vehicle is suitable for some people but at the same time, it is not suitable for another people. So the investment is also similar to this example. The rich dad also had explained that after making a plan to need to decide your vehicle which makes you achieve the goal. But many people stay at one vehicle could not able to complete his goals. They didn't move from A place to B place Financially.
Chapter 7 (Are you planing to be rich or Are you planing to be poor?)
Rich dad said that most people are planning for becoming poor. The author asked but how. Then he said that because they are using poor words. The author didn't understand asked again. Rich dad explains that there are two types of words one is poor words and other rich words and many people uses poor words and they become poor. Rich dad gave an assignment to observe what he had said. He told the author to talk with his dad on launch and listen his words careful. After one week both author and rich dad met again and rich dad asked the author. Did you observe the difference. Author replied yes . Many people did not learn different words of finance. They learn only about poor word which make them poor.
Chapter 8 (Getting Rich is Automatic...If You Have a Good Plan and Stick to it)
The chapter starts with rich dad told the author his stockbroker friends story. His friend told rich that In stock market 10 out of 9 Investor do not make money. They make money but lose it. Rich dad explains author that people think investment as Hollywood movie where they take a risk, make money and lose it. They think they are Investor. Rich dad said the author that investment is boring and there is no risk involved in it. The author asked the rich dad then why people do not get rich. Rich replied I also thought like this when aware of the question. Human being tendency to try new, exciting and twist things let them away from getting rich. Rich dad explains that people don't have simple formal for investment. But they think that investment plan is complex. Hence they end with having no money in their pockets.
If You want to purchase this book and other books mentioned in summary
GUIDE TO INVESTING BY ROBERT KIYOSAKI
http://tiny.cc/nv0hty
RICH DAD AND POOR DAD BY ROBERT KIYOSAKI
https://tinyurl.com/ybkgu8ew
CASHFLOW QUAFRANT BY ROBERT KIYOSAKI
http://tiny.cc/5a1hty
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