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.
20 YEARS AGO TODAY...
LIFE AS A TEACHER
Today’s millennials are learning the hard facts of life. Jobs are harder to find. Robots are replacing workers by the millions. Learning by making mistakes through trial and error is more and more important. Book learning is proving to be less valuable in the real world. No longer does a college education guarantee a job.
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?”
20 YEARS AGO TODAY...
CHANGE WHAT YOU CAN
I’ve learned the truth and wisdom in rich dad’s words. So much of life is out of our control.
I’ve learned to focus on what I do have control over: myself.
And if things must change, first I must change.
Rich dad rocked back and laughed heartily. Finally he said, “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.”
“I don’t understand,” I said.
“Don’t blame me for your problems,” rich dad said, growing impatient.
“But you only pay me 10 cents.”
“So what are you learning?” rich dad asked, smiling.
“That you’re cheap,” I said with a sly grin.
“See, you think I’m the problem,” said rich dad.
“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.
20 YEARS AGO TODAY...
ASSETS OVER INCOME
Buying or building assets that deliver cash flow is putting your money to work for you. High-paying jobs mean two things: you’re working for money and the taxes you pay will probably increase.
I’ve learned to put my money to work for me and enjoy the tax benefits of generating income that doesn’t come from a paycheck.
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,”