MANAOG, JHON MICHAEL A.

FEBRUARY 4, 2024
12-ABM AM-3B DR. LOIDA C. SUAREZ

PERFORMANCE TASK # 01
Reading and Insights about the book ‘Rich Dad Poor Dad' by Robert Kiyosaki and
Sharon Lechter.

1. Financial Education vs. Traditional Education: Traditional schooling primarily focuses on

academic subjects like math, science, and literature. However, it often neglects practical financial
knowledge necessary for real-world success, such as budgeting, investing, and understanding
economic principles.
2. Mindset Shift: Transitioning from an employee mindset, where one solely depends on a job
for income, to an entrepreneurial or investor mindset is crucial. This shift involves taking
initiative, seeking opportunities, and actively pursuing avenues for financial independence and
wealth creation.
3. Financial Literacy: Financial literacy encompasses understanding fundamental financial
concepts like assets, liabilities, and cash flow. It involves being able to manage money
effectively, make informed financial decisions, and create strategies for wealth accumulation and
preservation.
4. Importance of Skills Acquisition: Continuously learning new skills and gaining valuable
experience is essential for personal and professional growth. By expanding one's skill set,
individuals increase their earning potential, open up new opportunities, and position themselves
for financial success in various fields.
5. Asset Building: Investing in assets that generate passive income or appreciate in value over
time is key to building long-term wealth. Assets can include businesses, real estate, stocks,
bonds, and other income-producing investments that contribute to financial stability and security.
6. Debt Management: While debt can be a useful tool for acquiring income-generating assets,
it's crucial to manage debt responsibly. Acquiring debt for depreciating assets or non-essential
expenses can lead to financial strain and hinder wealth accumulation in the long run.
7. Savings and Investment: Saving and investing a portion of income early on is vital for
building wealth and achieving financial goals. By prioritizing savings and investment,
individuals can harness the power of compound interest and grow their assets over time.
8. Financial Planning vs. Traditional Resume: Developing a solid financial plan that aligns
with long-term goals is often more valuable than focusing solely on building a traditional job
resume. Financial planning involves setting clear objectives, managing resources effectively, and
making strategic decisions to achieve financial independence and security.
9. Entrepreneurship and Job Creation: Entrepreneurship offers individuals the opportunity to
create jobs, generate income, and build wealth through innovative business ventures. By taking
risks and pursuing entrepreneurial endeavors, individuals can unlock new sources of income and
contribute to economic growth.
10. Mindset and Financial Success: Adopting an entrepreneurial mindset involves embracing
challenges, taking calculated risks, and persisting in the face of adversity. This mindset shift is
essential for achieving long-term financial stability and success in a dynamic and competitive
world.
11. Financial IQ: Financial IQ refers to a combination of knowledge, skills, and attitudes related
to managing finances effectively. By enhancing one's financial IQ through education, experience,
and self-awareness, individuals can make informed decisions, mitigate risks, and capitalize on
opportunities for wealth creation.
12. Challenging Conventional Paths: Conventional paths like pursuing higher education,
seeking job security, and saving for retirement may not always lead to financial freedom.
Challenging conventional wisdom involves questioning assumptions, exploring alternative
pathways, and embracing unconventional strategies for wealth accumulation and fulfillment.
13. Innovation and Wealth Creation: Wealth often stems from innovation, creativity, and
effective execution of ideas in business and investing. By fostering a culture of innovation and
embracing change, individuals can create value, capitalize on emerging opportunities, and
achieve sustainable wealth creation.
14. Continuous Learning: Continuous learning is essential for adapting to evolving market
conditions, staying abreast of industry trends, and enhancing professional competencies. By
investing in ongoing education and skill development, individuals can remain competitive,
resilient, and adaptable in today's dynamic global economy.
15. Tax Strategies for Businesses vs. Employees: Businesses often have access to more
favorable tax treatment and incentives compared to individual employees. By understanding tax
laws, leveraging tax-efficient strategies, and structuring investments wisely, individuals can
minimize tax liabilities and optimize their financial outcomes.
16. Focus on Assets over Paychecks: Prioritizing the acquisition of income-generating assets
over relying solely on earned income from a job is fundamental to building sustainable wealth.
By accumulating assets that appreciate in value and generate passive income, individuals can
achieve financial independence and security over time.
17. Investment in Education: Investing in education from reputable sources can provide
individuals with valuable knowledge, skills, and credentials necessary for career advancement
and financial success. By pursuing lifelong learning opportunities, individuals can expand their
horizons, unlock new opportunities, and enhance their earning potential.
18. Employment as an Asset: Being a valuable employee involves demonstrating expertise,
delivering results, and contributing to the success of an organization. By cultivating valuable
skills, building strong relationships, and seizing opportunities for growth, individuals can
position themselves as assets to employers and enhance their career prospects.
19. Understanding Customers and Cash Flow: Recognizing the value of customers and
managing cash flow effectively are essential components of business success and financial
stability. By prioritizing customer satisfaction, optimizing revenue streams, and maintaining
healthy cash flow, individuals can sustainably grow their businesses and achieve long-term
financial success.
20. Making Money Work for You: The ultimate goal of financial independence is to leverage
money as a tool for generating passive income and achieving freedom from financial constraints.
By investing wisely, diversifying income streams, and harnessing the power of compounding,
individuals can build sustainable wealth and enjoy a fulfilling lifestyle.

References:

Kiyosaki, R. T. (1997). Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That
the Poor and Middle Class Do Not! Plata Publishing.
Burns, S. (2023, February 15). 20 lessons from Rich Dad Poor Dad that changed my life - New
Trader U. New Trader U. http://tinyurl.com/v4c557pm