Rich Dad's Business School for People Who Like Helping People Notes

Dedication

• This book is dedicated to individuals, couples, and families embarking on their business journey through network marketing.
• It acknowledges the industry's dedication to helping people start and build businesses, aligning with the authors' mission to educate on financial freedom.
• Network marketing is presented as a potentially "perfect business" for those who understand money and wealth creation.

Acknowledgements

• The authors express gratitude for the positive reception of the first edition and acknowledge the network marketing industry's acceptance of their work since the mid-1990s.
• They thank individuals in the upline, downline, crossline, and associated companies for their mutual quest to empower people to take control of their financial lives.

Response to Susan M's Letter

• The book addresses common concerns and questions about network marketing, as exemplified by Susan's letter.
• It seeks to provide a comprehensive answer, acknowledging that network marketing isn't for everyone.
• The goal is to help readers determine if network marketing is suitable for them and highlight the hidden opportunities and values beyond just making extra money.

Chapter 1: What Makes the Rich Rich?

• Rich dad's perspective: Schools don't teach about money, focusing instead on preparing students for safe, secure jobs.
• Kiyosaki's desire: To learn how to become rich, not just an employee, seeking financial freedom and control over his life.
• Rich Dad vs. Poor Dad:
  • Rich dad: Became wealthy without formal education, emphasizing business ownership and investing.
  • Poor dad: Highly educated, government official, but financially struggling and died with little to show.
• Kiyosaki's motivation: After seeing his parents' financial struggles, he sought an adult mentor to teach him about money, leading him to study with his rich dad from age 9 to 38.
• Rich dad's advice: "If you want to be rich, you need to be a business owner and an investor."

Thomas Edison's Riches and Fame

• Thomas Edison is portrayed as more than an inventor; he perfected, commercialized the light bulb and created businesses (General Electric).
• Edison's background: Dropped out of school, sold candies/magazines, printed his newspaper, employed other boys.
• Importance of systems: Edison understood the power of networks (electrical lines, relay stations).
• Rich dad's explanation: The richest people build networks, while others are trained to seek employment within them.
• Rockefeller's success: Building a network of gas stations, trucks, ships, pipelines led to his wealth.
• Examples of networks: AT&T, radio, TV, Internet – those who build/own the network associated with innovations become rich.
• School systems' focus: Preparing employees for existing networks rather than teaching network building.
• Business network benefits: A well-designed business network can exponentially earn more than an individual.

Why the Rich Get Richer

• "Birds of a feather flock together": The rich network with the rich, perpetuating wealth.
• Network marketing: It provides an opportunity to network with people who are there to help you become richer.
• Crucial question: Is your company dedicated to you becoming rich, or simply a hard worker?
• Kiyosaki's decision at 15: Seek friendships with those interested in his wealth creation rather than employment loyalty.

Network Marketing: A Business School for the People

• Many network marketing companies offer the same business education: building your own network and understanding its power.
• Traditional education trains people to be loyal employees, not business owners/network builders.
• Rich dad's advice against MBA: "If you want to be rich, rather than a highly paid employee of the rich, you need to go to a business school that teaches you to be an entrepreneur."
• Network marketing companies: Teaching values not found in traditional business schools, such as teaching others to become business owners.

Other Ways of Getting Rich

• Acknowledges other paths to wealth but emphasizes that network marketing can be a vehicle for pursuing dreams and passions.

Chapter 2: There Is More Than One Way To Become Rich

• Three types of education for financial success: scholastic, professional, and financial.
• Scholastic education: Reading, writing, math—essential but not sufficient.
• Professional education: Job-oriented skills, such as becoming doctors, lawyers, plumbers, mechanics.
• Financial education: Learning how to have money work for you.

Failure of Financial Education

• US and Western nations face a financial disaster due to inadequate financial education in schools; most people didn't receive sufficient education in managing/investing money.
• Millions lost trillions in the stock market and millions will not have enough money for retirement or medical care; financial advisors don't often mention the increase in medical expenses following retirement

A Personal Comment

• Author and wife retired early without jobs, government assistance, stocks, or mutual funds because they believe mutual funds are very risky investments
• If one does not have financial education, then financial advisors advise saving money, buying mutual funds, investing for the long-term, and diversifying

Other Ways to Become Rich

There are 10 ways people become rich, other than building a business network:
* Marrying for money.
* Being a crook.
* Being greedy.
* Being cheap.
* Hard work
* Working hard people often struggle to enjoy their money, they only know how to work.
* People who work hard make the wrong decisions, making them pay the highest taxes on all income.
* Being exceptionally smart, talented, attractive or gifted. Gifted people may not become rich. (E.g. Hollywood actors who earn less than most people).
* Being lucky. People betting on the lottery and hoping to strike it rich.
* Inheriting Money. After one's twenties, they should know if they are inheriting anything.
* Investing. It takes money to invest, however investing can be expensive.
* Building a business. Building a business is how people become very rich.

Difference between Big and Small Business Owners

*Difference is that big business people build networks.

• World has small businesses who own restaurants, Ray Kroc founded McDonald's which is a franchise network
• Building a business network is the way richest people became rich

The Eleventh Way To Become Rich

• 11. Building a network marketing business:
      *It is on the elevenths because it is new and revolutionary way of sharing the wealth with anyone who truly wants to acquire great wealth
• A network marketing system is set up to make it possible for anyone, a personal franchise, to share
  • A system with Wealth creation that is democratic

Wealth For Everyone

In network marking business people are generous and want to help their fellow human beings. Systems give power to to help financial goals and dreams

• To achieve wealth, there are many ways, the best is the way that works best for you, which in the following chapters will be discussing about core values in network marketing businesses
• Method that's chosen will be the method closely matching to core values

Chapter 3: Value #1: True Equal Opportunity

• I did not become rich from building a network marketing business, why do I recommend others get into business?
  Because there are several reasons in the book that you need to.

The Closing of my Mind

• In the mid-1970s, offered new business opportunity, agreed to attend the meeting.
  Was introduced In the world of network marketing, but thought it was strange that the meeting was in a private home instead of an office.
  I was building my business to make myself rich, they want to build a network opportunity to make many people rich; wasn't opened to radical new ideas.

  • Was building my sports wallet business, success seems to pour down on my partners and I. Two years of hard work paying off.
    Reached our goal to be millionaires before 30, million was worth something back then.

• Mind was closed, did not want to hear what it was about.

A change of mind

• In the early 1990s a friend told me he was in the network marketing business, puzzled. Asked him why he was in the business, he replied saying he didn't need the money but wanted to help people learn real estate investment tips.
• Problem is most people cant invest because they don't have enough money to invest in his level of real estate investments.
  I wanted people who started a network-marketing business wanted new answers and they are ready to learn , I love teaching and learning; it is a great real life business school.
• My mind began to open, beginning to know more into why someone as rich as them had a network marketing opportunity, more to it then just money.

A Newly opened Mind

• Open, instead of just closing my mind, I wanted to find my answers.
  See negative most people saw: strange people from the industry to promote their business
  After getting through those people, finally Meeting the leaders of some, most intelligent people I have ever met
  *The real value of network-marketing:
  Describing the businesses with real value then just the potential of making a lot of money, finally found businesses with deep and caring for people.