(...Continued
From Rich Dad Poor Dad Part 1)
Rich Dad, Poor Dad
As narrated by Robert Kiyosaki
My two dads had opposing attitudes
in thought. One dad thought that the rich should pay more
in taxes to take care of those less fortunate. The other said,
"Taxes punish those who produce and reward those who
don't produce."
One dad recommended, "Study
hard so you can find a good company to work for." The
other recommended, "Study hard so you can find a good
company to buy."
One dad said, "The reason
I'm not rich is because I have you kids." The other said,
"The reason I must be rich is because I have you kids."
One encouraged talking about
money and business at the dinner table. The other forbade
the subject of money to be discussed over a meal.
One said, "When it comes
to money, play it safe, don't take risks." The other
said, "Learn to manage risk."
One believed, "Our home
is our largest investment and our greatest asset." The
other believed, "My house is a liability, and if your
house is your largest investment, you're in trouble."
Both dads paid their bills
on time, yet one paid his bills first while the other paid
his bills last.
One dad believed in a company
or the government taking care of you and your needs. He was
always concerned about pay raises, retirement plans, medical
benefits, sick leave, vacation days and other perks. He was
impressed with two of his uncles who joined the military and
earned a retirement and entitlement package for life after
twenty years of active service. He loved the idea of medical
benefits and PX privileges the military provided its retirees.
He also loved the tenure system available through the university.
The idea of job protection for life and job benefits seemed
more important, at times, than the job. He would often say,
"I've worked hard for the government, and I'm entitled
to these benefits."
The other believed in total
financial self-reliance. He spoke out against the "entitlement"
mentality and how it was creating weak and financially needy
people. He was emphatic about being financially competent.
One dad struggled to save
a few dollars. The other simply created investments.
One dad taught me how to write
an impressive resume so I could find a good job. The other
taught me how to write strong business and financial plans
so I could create jobs.
Being a product of two strong
dads allowed me the luxury of observing the effects different
thoughts have on one's life. I noticed that people really
do shape their life through their thoughts.
For example, my poor dad always
said, "I'll never be rich." And that prophesy became
reality. My rich dad, on the other hand, always referred to
himself as rich. He would say things like, "I'm a rich
man, and rich people don't do this." Even when he was
flat broke after a major financial setback, he continued to
refer to himself as a rich man. He would cover himself by
saying, "There is a difference between being poor and
being broke. Broke is temporary, and poor is eternal."
My poor dad would also say,
"I'm not interested in money," or "Money doesn't
matter." My rich dad always said, "Money is power."
The power of our thoughts
may never be measured or appreciated, but it became obvious
to me as a young boy to be aware of my thoughts and how I
expressed myself. I noticed that my poor dad was poor not
because of the amount of money he earned, which was significant,
but because of his thoughts and actions. As a young boy, having
two fathers, I became acutely aware of being careful which
thoughts I chose to adopt as my own. Whom should I listen
to—my rich dad or my poor dad?
Although both men had tremendous
respect for education and learning, they disagreed in what
they thought was important to learn. One wanted me to study
hard, earn a degree and get a good job to work for money.
He wanted me to study to become a professional, an attorney
or an accountant or to go to business school for my MBA. The
other encouraged me to study to be rich, to understand how
money works and to learn how to have it work for me. "I
don't work for money!" were words he would repeat over
and over, "Money works for me!"
At the age of 9, I decided
to listen to and learn from my rich dad about money. In doing
so, I chose not to listen to my poor dad, even though he was
the one with all the college degrees.
A Lesson From Robert Frost
Robert Frost is my favorite
poet. Although I love many of his poems, my favorite is The
Road Not Taken. I use its lesson almost daily:
The Road Not Taken
Two roads diverged in
a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;
Then took the other,
as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear
Though as for that the passing there
Had worn them really about the same,
And both that morning
equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads onto way,
I doubted if I should ever come back.
I shall be telling this
with a sigh
Somewhere ages and ages hence;
Two roads diverged in a wood, and I—
I took the one less traveled by,
And that has made all the difference.
Robert Frost [1916]
And that made all the difference.
Over the years, I have often
reflected upon Robert Frost's poem. Choosing not to listen
to my highly educated dad's advice and attitude about money
was a painful decision, but it was a decision that shaped
the rest of my life.
Once I made up my mind whom
to listen to, my education about money began. My rich dad
taught me over a period of 30 years, until I was age 39. He
stopped once he realized that I knew and fully understood
what he had been trying to drum into my often thick skull.
Money is one form of power.
But what is more powerful is financial education. Money comes
and goes, but if you have the education about how money works,
you gain power over it and can begin building wealth. The
reason positive thinking alone does not work is because most
people went to school and never learned how money works, so
they spend their lives working for money.
Because I was only 9 years
old when I started, the lessons my rich dad taught me were
simple. And when it was all said and done, there were only
six main lessons, repeated over 30 years. This book is about
those six lessons, put as simply as possible as my rich dad
put forth those lessons to me. The lessons are not meant to
be answers but guideposts. Guideposts that will assist you
and your children to grow wealthier no matter what happens
in a world of increasing change and uncertainty.
Lesson #1 The Rich Don't Work
for Money
Lesson #2 Why Teach Financial
Literacy?
Lesson #3 Mind Your Own Business
Lesson #4 The History of Taxes
and the Power of Corporations
Lesson #5 The Rich Invent
Money
Lesson #6 Work to Learn—
Don't Work for Money
| Authors Details: Robert T. Kiyosaki
and Sharon L. Lechter Excerpt From "Rich Dad Poor
Dad" |
More Articles On How To Get Rich
(Ten
Decisions You Need to Make to Get Rich Part 1)
(Ten
Decisions You Need to Make to Get Rich Part 2)
(Rich
Dad Poor Dad Pt 1)
(Rich
Dad Poor Dad Pt 2)
(How
To Get Rich) |
