Rich Dad, Poor Dad questions

What is a definition of an asset and a liability?

An asset puts money into your pocket. A liability takes money out of your pocket.

Why does the author say that it is not important to be wise with your money?

Be smart with your money before you have it...have a strong foundation.

What does "Mind your own business" refer to?

tending to your own business and not working for someone else....your business revolves around your assets

What is Rich Dad's number one rule?

You must know the difference between an asset and liability and buy assets.

What was the first business-rich scheme- the young boys had?

counterfeit nickel making company

Why don't people take risks?

They are afraid to because they were not taught early in life to take them.

Define "Rat Race"

The more money they make, the more they spend. The mentality of making money and then spending it..

What are the 5 main reasons why financially literate people may still not develop abundant asset columns?

1.) Fear 2.) Cynicism 3.) Laziness 4.) Bad habits 5.) Arrogance

What are the real lessons Rich Dad was trying to teach the boys in chapter 2?

1.) That you can't learn how to make money in a classroom. 2.) You need to take risks at times. 3.) The rich and the middle class work for money. The rich have money work for them.

What are the six lessons of rich dad poor dad?

1.)The rich don't work for money. 2.)Why teach Financial Literacy?3.) Mind your own business. 4.)The history of taxes and the power of corporations. 5.)The rich invent money. 6.)Work to learn--Don't work for money.

What are the 2 emotions that trigger the "Rat Race"?

Fear and greed (desire)--fear --we fear not having the money to buy what we want so we work more; greed or desire because this is what motivates us to realize about all of the wonderful things we can buy--then the cycle begins...

According to the author, life does not teach. What does the author tell us life does?

Life pushes you around

What does Kiyosaki state is the key to a good foundation?

know the difference between a liability and an asset

Financial literacy begins with?

knowledge of accounting

What 3 things impact a young individual who decides to buy a house that is too expensive?

loss of time investing in assets that could have made money; loss of additional capital but that now was used to maintain the house; loss of education

What was the lesson the boys learned when they were working for their Rich Dad which would help them get out of the "Rat Race"?

work hard to put money in your own pocket instead of someone elses