Three Big Takeaways:
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1. Fear of being without money motivates us to work hard, and then once we get that paycheck, greed starts us thinking about all the wonderful things money can buy. The pattern is then set. The pattern is get up, go to work, pay bills; get up, go to work, pay bills. Offer them more money and they continue the cycle by increasing their spending. This is what I call the Rat Race. (pg. 39)
    

2. An asset is something that puts money in my pocket whether I work or not. A liability is something that takes money out of my pocket. This is really all you need to know. If you want to be rich, simply spend your life buying or building assets. If you want to be poor or middle class, spend your life buying liabilities. (pg. 70)
    

3. As your cash flow grows, you can indulge in some luxuries. An important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries first. The poor and the middle class often buy luxury items like big houses, diamonds, furs, jewelry, or boats because they want to look rich. They look rich, but in reality they just get deeper in debt on credit. The long-term rich build their asset column first. Then the income generated from the asset column buys their luxuries. The poor and middle class buy luxuries with their own sweat, blood, and children's inheritance. (pg. 113)
   
    

Other Key Ideas
 

The poor and the middle class work for money. The rich have money work for them. My poor dad recommended, "Son, I want you to study hard, get good grades, so you can find a safe, secure job with a big company. And make sure it has excellent benefits." My rich dad wanted me to learn how money works so I could make it work for me. (pg. 32)

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I've met so many people who say, "Oh, I'm not interested in money." Yet they'll work at a job for eight hours a day. That's a denial of truth. If they weren't interested in money, why are they working? That kind of thinking is probably more psychotic than a person who hoards money. (pg. 42)

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Once a person stops searching for information and self-knowledge, ignorance sets in. That struggle is a moment-to-moment decision - to learn to open or close one's mind. Look, school is very important. You go to school to learn a skill or profession to become a contributing member of society. Unfortunately, for many people school is the end, not the beginning. (pg. 45)

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This pattern of treating your home as investment, and the philosophy that a pay raise means you can buy a larger home or spend more, is the foundation of today's debt-ridden society. Increased spending throws into greater debt and into more financial uncertainty, even though they may be advancing in their jobs and receiving pay raises. (pg. 88)

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Remember: The rich buy assets, the poor only have expenses, and the middle class buy liabilities they think are assets. (pg. 92)

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Financial struggle is often directly the result of people working all their lives for someone else. Many people will simply have nothing at the end of their working days to show for their efforts. (pg. 108)

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I cringe every time I hear someone say their net worth is a million dollars. One of the main reasons net worth is not accurate is simply because, the moment you begin selling your assets, you are taxed for any gains. So many people have put themselves in deep financial trouble when they run short of income. To raise cash, they sell their assets. But their personal assets can generally be sold for only a fraction of the value that is listed on their balance sheet. That is why I say someone's net worth is often "worth less" than they think. (pg. 111)

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What kind of assets am I suggesting you acquire? In my world, real assets fall into the following categories: Businesses that do not require my presence, Stocks, Bonds, Income-generating real estate, and royalties from intellectual property (books). (pg. 111)

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So many people struggle today, often working harder, because they cling to old ideas. They want things to be the way they were, and they resist change. I know people who are losing their job or their houses, and they blame technology or the economy or their boss. Sadly, they fail to realize that they might be the problem. (pg. 148)

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Once people are trapped in the lifelong process of bill-paying, they become like those little hamsters running around in those metal wheels. Their furry legs are spinning furiously, the wheel is turning furiously, but come tomorrow morning, they'll still be in the same cage. Great job. The question I often ask people is, "Where is this daily activity taking you?" Just like the little hamster, I wonder if people look at where their hard work is taking them. What does the future hold? (pg. 185)

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The ability to sell is the base skill of personal success. Communication skills such as writing, speaking, and negotiating are crucial to a life of success. I've met hundreds of ex-school teachers earning hundreds of thousands of dollars a year because they have specialized skills in their field as well as other skills. That can teach, as well as sell and market. The skills of selling and marketing are difficult for most people, primarily due to their fear of rejection. The better you are at communicating and handling your fear of rejection, the easier life is. (pg. 192)

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Most people are poor because, when it comes to investing, people run around and yell, "The sky is falling! The sky is falling!" It often takes great courage to not let rumors and talk of doom and gloom affect your doubts and fears. But a savvy investor knows the worst times are actually the best times to make money. When everyone else is too afraid to act, they pull the trigger and are rewarded. (pg. 212)

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Busy people are often the most lazy. Often people are "too busy" to take care of their wealth. If they aren't busy at work, they're often busy watching TV, fishing, playing golf, or shopping. Yet, deep down they know they are avoiding something important. That's the most common form of laziness: laziness by staying busy. (pg. 216)

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Most people choose not to be rich. For 90 percent of the population, being rich is too much of a hassle. So they say, "I'm not interested in money." The problem with those statements is they rob the person of two things: One is time, which is your most precious asset. The second is learning. Having no money should not be an excuse to not learn. But that is a choice we all make daily: the choice of what we do with our time, our money, and what we put in our heads. (pg. 236)