Note: Rich Dad Poor Dad can be downloaded for free on Google as a PDF.
I was ready to face Mike’s dad. Even my real dad was angry with him. My real dad, the one I call the poor one, thought that my rich dad was violating child labor laws and should be investigated.
My educated, poor dad told me to demand what I deserve—at least 25 cents an hour. My poor dad told me that if I did not get a raise, I was to quit immediately.
“You don’t need that damned job anyway,” said my poor dad with indignation.
At eight o’clock Saturday morning, I walked through the door of Mike’s house when Mike’s dad opened it.
“Take a seat and wait in line,” he said as I entered. He turned and disappeared into his little office next to a bedroom.
I looked around the room and didn’t see Mike anywhere. Feeling awkward, I cautiously sat down next to the same two women who were there four weeks earlier. They smiled and slid down the couch to make room for me.
Forty-five minutes went by, and I was steaming. The two women had met with him and left 30 minutes earlier. An older gentleman was in there for 20 minutes and was also gone.
The house was empty, and here I sat in a musty, dark living room on a beautiful sunny Hawaiian day, waiting to talk to a cheapskate who exploited children. I could hear him rustling around the office, talking on the phone, and ignoring me. I was ready to walk out, but for some reason I stayed.
Finally, 15 minutes later, at exactly nine o’clock, rich dad walked out of his office, said nothing, and signaled with his hand for me to enter.
“I understand you want a raise, or you’re going to quit,” rich dad said as he swiveled in his office chair.
“Well, you’re not keeping your end of the bargain,” I blurted out, nearly in tears. It was really frightening for me to confront a grown-up.
“You said that you would teach me if I worked for you. Well, I’ve worked for you. I’ve worked hard. I’ve given up my baseball games to work for you, but you haven’t kept your word, and you haven’t taught me anything. You are a crook like everyone in town thinks you are.
You’re greedy. You want all the money and don’t take care of your employees. You made me wait and don’t show me any respect. I’m only a little boy, but I deserve to be treated better.”
Rich dad rocked back in his swivel chair, hands up to his chin, and stared at me.
“Not bad,” he said. “In less than a month, you sound like most of my employees.”
“What?” I asked. Not understanding what he was saying, I continued with my grievance. “I thought you were going to keep your end of the bargain and teach me. Instead you want to torture me? That’s cruel. That’s really cruel.”
“I am teaching you,” rich dad said quietly.
“What have you taught me? Nothing!” I said angrily. “You haven’t even talked to me once since I agreed to work for peanuts. Ten cents an hour. Hah! I should notify the government about you. We have child labor laws, you know. My dad works for the government, you know.”
“Wow!” said rich dad. “Now you sound just like most of the people who used to work for me—people I’ve either fired or who have quit.”
“So what do you have to say?” I demanded, feeling pretty brave for a little kid. “You lied to me. I’ve worked for you, and you have not kept your word. You haven’t taught me anything.”
“How do you know that I’ve not taught you anything?” asked rich dad calmly.
“Well, you’ve never talked to me. I’ve worked for three weeks and you have not taught me anything,” I said with a pout.
“Does teaching mean talking or a lecture?” rich dad asked.
“Well, yes,” I replied.
“That’s how they teach you in school,” he said, smiling. “But that is not how life teaches you, and I would say that life is the best teacher of all. Most of the time, life does not talk to you. It just sort of pushes you around. Each push is life saying, ‘Wake up. There’s something I want you to learn.’”
“What is this man talking about?” I asked myself silently. “Life pushing me around was life talking to me?” Now I knew I had to quit my job. I was talking to someone who needed to be locked up.
“If you learn life’s lessons, you will do well. If not, life will just continue to push you around. People do two things. Some just let life push them around. Others get angry and push back. But they push back against their boss, or their job, or their husband or wife. They do not know it’s life that’s pushing.”
I had no idea what he was talking about.
“Life pushes all of us around. Some people give up and others fight. A few learn the lesson and move on. They welcome life pushing them around. To these few people, it means they need and want to learn something. They learn and move on. Most quit, and a few like you fight.”
Rich dad stood and shut the creaky old wooden window that needed repair. “If you learn this lesson, you will grow into a wise, wealthy, and happy young man. If you don’t, you will spend your life blaming a job, low pay, or your boss for your problems. You’ll live life always hoping for that big break that will solve all your money problems.”
Rich dad looked over at me to see if I was still listening. His eyes met mine. We stared at each other, communicating through our eyes.
Finally, I looked away once I had absorbed his message. I knew he was right. I was blaming him, and I did ask to learn. I was fighting.
Rich dad continued, “Or if you’re the kind of person who has no guts, you just give up every time life pushes you. If you’re that kind of person, you’ll live all your life playing it safe, doing the right things, saving yourself for some event that never happens. Then you die a boring old man. You’ll have lots of friends who really like you because you were such a nice hardworking guy. But the truth is that you let life push you into submission. Deep down you were terrified of taking risks. You really wanted to win, but the fear of losing was greater than the excitement of winning. Deep inside, you and only you will know you didn’t go for it. You chose to play it safe.”
Our eyes met again.
“You’ve been pushing me around?” I asked.
“Some people might say that,” smiled rich dad. “I would say that I just gave you a taste of life.”
“What taste of life?” I asked, still angry, but now curious and ready to learn.
“You boys are the first people who have ever asked me to teach them how to make money. I have more than 150 employees, and not one of them has asked me what I know about money. They ask me for a job and a paycheck, but never to teach them about money. So most will spend the best years of their lives working for money, not really understanding what it is they are working for.”
I sat there listening intently.
“So when Mike told me you wanted to learn how to make money, I decided to design a course that mirrored real life. I could talk until I was blue in the face, but you wouldn’t hear a thing. So I decided to let life push you around a bit so you could hear me. That’s why I only paid you 10 cents.”
“So what is the lesson I learned from working for only 10 cents an hour?” I asked. “That you’re cheap and exploit your workers?”
Rich dad rocked back and laughed heartily. You’d best change your point of view. Stop blaming me and thinking I’m the problem. If you think I’m the problem, then you have to change me. If you realize that you’re the problem, then you can change yourself, learn something, and grow wiser. Most people want everyone else in the world to change but themselves. Let me tell you, it’s easier to change yourself than everyone else.”
“But you are.”
“Well, keep that attitude and you’ll learn nothing. Keep the attitude that I’m the problem and what choices do you have?”
“Well, if you don’t pay me more or show me more respect and teach me, I’ll quit.”
“Well put,” rich dad said. “And that’s exactly what most people do. They quit and go looking for another job, a better opportunity, and higher pay, actually thinking that this will solve the problem. In most cases, it won’t.”
“So what should I do?” I asked. “Just take this measly 10 cents an hour and smile?”
Rich dad smiled. “That’s what the other people do. But that’s all they do, waiting for a raise thinking that more money will solve their problems. Most just accept it, and some take a second job working harder, but again accepting a small paycheck.”
I sat staring at the floor, beginning to understand the lesson rich dad was presenting. I could sense it was a taste of life. Finally, I looked up and asked, “So what will solve the problem?”
“This,” he said, leaning forward in his chair and tapping me gently on the head. “This stuff between your ears.”
It was at that moment that rich dad shared the pivotal point of view that separated him from his employees and my poor dad—and led him to eventually become one of the richest men in Hawaii, while my highly educated but poor dad struggled financially all his life.
It was a singular point of view that made all the difference over a lifetime.
Rich dad explained this point of view over and over, which I call lesson number one: The poor and the middle class work for money. The rich have money work for them.
On that bright Saturday morning, I learned a completely different point of view from what I had been taught by my poor dad. At the age of nine, I understood that both dads wanted me to learn. Both dads encouraged me to study, but not the same things.
My highly educated dad recommended that I do what he did.
“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.
These lessons I would learn through life with his guidance, not because of a classroom.
My rich dad continued my first lesson, “I’m glad you got angry about working for 10 cents an hour. If you hadn’t got angry and had simply accepted it, I would have to tell you that I could not teach you.
You see, true learning takes energy, passion, and a burning desire. Anger is a big part of that formula, for passion is anger and love combined.
When it comes to money, most people want to play it safe and feel secure. So passion does not direct them. Fear does.”
“So is that why they’ll take jobs with low pay?” I asked.
“Yes,” said rich dad. “Some people say I exploit people because I don’t pay as much as the sugar plantation or the government. I say the people exploit themselves. It’s their fear, not mine.”
“But don’t you feel you should pay them more?” I asked.
“I don’t have to. And besides, more money will not solve their problems. Just look at your dad. He makes a lot of money, and he still can’t pay his bills. Most people, given more money, only get into more debt.”
“So that’s why the 10 cents an hour,” I said, smiling. “It’s a part of the lesson.”
“That’s right,” smiled rich dad. “You see, your dad went to school and got an excellent education, so he could get a high-paying job. But he still has money problems because he never learned anything about money in school. On top of that, he believes in working for money.”
“And you don’t?” I asked.
“No, not really,” said rich dad. “If you want to learn to work for money, then stay in school. That is a great place to learn to do that.
But if you want to learn how to have money work for you, then I will teach you that. But only if you want to learn.”
“Wouldn’t everyone want to learn that?” I asked.
“No,” said rich dad, “simply because it’s easier to learn to work for money, especially if fear is your primary emotion when the subject of money is discussed.”
“I don’t understand,” I said with a frown.
“Don’t worry about that for now. Just know that it’s fear that keeps most people working at a job: the fear of not paying their bills, the fear of being fired, the fear of not having enough money, and the fear of starting over. That’s the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money—and then get angry at their boss.”
“Learning to have money work for you is a completely different course of study?” I asked.
“Absolutely,” rich dad answered. “Absolutely.”
We sat in silence on that beautiful Hawaiian Saturday morning. My friends had just started their Little League baseball game, but for some reason I was now thankful I had decided to work for 10 cents an hour.
I sensed that I was about to learn something my friends wouldn’t learn in school.
“Ready to learn?” asked rich dad.
“Absolutely,” I said with a grin.
“At nine years old, you’ve gotten a taste of what it feels like to work for money. Just multiply your last month by fifty years and you will have an idea of what most people spend their life doing.”
“I don’t understand,” I said.
“How did you feel waiting in line to see me, once to get hired and once to ask for more money?”
“Terrible,” I said.
“If you choose to work for money, that is what life will be like,” said rich dad. “And how did you feel when Mrs. Martin dropped three dimes in your hand for three hours of work?”
“I felt like it wasn’t enough. It seemed like nothing. I was disappointed,” I said.
“And that is how most employees feel when they look at their paychecks—especially after all the tax and other deductions are taken out. At least you got 100 percent.”
“You mean most workers don’t get paid everything?” I asked with amazement.
“Heavens no!” said rich dad. “The government always takes its share first.”
“How do they do that?” I asked.
“Taxes,” said rich dad. “You’re taxed when you earn. You’re taxed when you spend. You’re taxed when you save. You’re taxed when you die.”
“Why do people let the government do that to them?”
“The rich don’t,” said rich dad with a smile. “The poor and the middle class do. I’ll bet you that I earn more than your dad, yet he pays more in taxes.”
“How can that be?” I asked. At my age, that made no sense to me.
“Why would someone let the government do that to them?”
Rich dad rocked slowly and silently in his chair, just looking at me.
“Ready to learn?” he asked.
I nodded my head slowly.
“As I said, there is a lot to learn. Learning how to have money work for you is a lifetime study. Most people go to college for four years, and their education ends. I already know that my study of money will continue over my lifetime, simply because the more I find out, the more I find out I need to know. Most people never study the subject. They go to work, get their paycheck, balance their checkbooks, and that’s it. Then they wonder why they have money problems. They think that more money will solve the problem and don’t realize that it’s their lack of financial education that is the problem.”
“So my dad has tax problems because he doesn’t understand money?” I asked, confused.
“Look,” said rich dad, “taxes are just one small section on learning how to have money work for you.
Today, I just wanted to find out if you still have the passion to learn about money. Most people don’t. They want to go to school, learn a profession, have fun at their work, and earn lots of money. One day they wake up with big money problems, and then they can’t stop working. That’s the price of only knowing how to work for money instead of studying how to have money work for you. So do you still have the passion to learn?” asked rich dad.
I nodded my head.
“Good,” said rich dad. “Now get back to work. This time, I will pay you nothing.”
“What?” I asked in amazement.
“You heard me. Nothing. You will work the same three hours every Saturday, but this time you will not be paid 10 cents per hour. You said you wanted to learn to not work for money, so I’m not going to pay you anything.”
I couldn’t believe what I was hearing.
...
“That’s not fair,” I shouted. “You’ve got to pay something!”
“You said you wanted to learn. If you don’t learn this now, you’ll grow up to be like the two women and the older man sitting in my living room, working for money and hoping I don’t fire them. Or like your dad, earning lots of money only to be in debt up to his eyeballs, hoping more money will solve the problem. If that’s what you want, I’ll go back to our original deal of 10 cents an hour. Or you can do what most adults do: Complain that there is not enough pay, quit, and go looking for another job.”
“But what do I do?” I asked.
Rich dad tapped me on the head. “Use this,” he said. “If you use it well, you will soon thank me for giving you an opportunity and you will grow into a rich man.”
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