黑龙江国家电网招聘>>Construction on the skyscraper begins. It goes up quickly, and soon, instead of the Empire State Building, we have the Leaning Tower of Suburbia. The sleepless nights return.
Construction on the skyscraper begins. It goes up quickly, and soon, instead of the Empire State Building, we have the Leaning Tower of Suburbia. The sleepless nights return.I had two fathers, a rich one and a poor one. One was highly educated and intelligent; he had a Ph.D. and completed four years of undergraduate work in less than two years. He then went on to Stanford University, the University of Chicago, and Northwestern University to do his advanced studies, all on full financial scholarships. The other father never finished the eighth grade.Both men were successful in their careers, working hard all their lives. Both earned substantial incomes. Yet one struggled financially all his life. The other would become one of the richest men in Hawaii. One died leaving tens of millions of dollars to his family, charities and his church. The other left bills to be paid.Both men were strong, charismatic and influential. Both men offered me advice, but they did not advise the same things. Both men believed strongly in education but did not recommend the same course of study.If I had had only one dad, I would have had to accept or reject his advice. Having two dads advising me offered me the choice of contrasting points of view; one of a rich man and one of a poor man.Instead of simply accepting or rejecting one or the other, I found myself thinking more, comparing and then choosing for myself.The problem was, the rich man was not rich yet and the poor man not yet poor. Both were just starting out on their careers, and both were struggling with money and families. But they had very different points of view about the subject of money.For example, one dad would say, "The love of money is the root of all evil." The other, "The lack of money is the root of all evil."As a young boy, having two strong fathers both influencing me was difficult. I wanted to be a good son and listen, but the two fathers did not say the same things. The contrast in their points of view, particularly where money was concerned, was so extreme that I grew curious and intrigued. I began to start thinking for long periods of time about what each was saying.Much of my private time was spent reflecting, asking myself questions such as, "Why does he say that?" and then asking the same question of the other dad's statement. It would have been much easier to simply say, "Yeah, he's right. I agree with that." Or to simply reject the point of view by saying, "The old man doesn't know what he's talking about." Instead, having two dads whom I loved forced me to think and ultimately choose a way of thinking for myself. As a process, choosing for myself turned out to be much more valuable in the long run, rather than simply accepting or rejecting a single point of view.One of the reasons the rich get richer, the poor get poorer, and the middle class struggles in debt is because the subject of money is taught at home, not in school. Most of us learn about money from our parents. So what can a poor parent tell their child about money? They simply say "Stay in school and study hard." The child may graduate with excellent grades but with a poor person's financial programming and mind-set. It was learned while the child was young.Money is not taught in schools. Schools focus on scholastic and professional skills, but not on financial skills. This explains how smart bankers, doctors and accountants who earned excellent grades in school may still struggle financially all of their lives. Our staggering national debt is due in large part to highly educated politicians and government officials making financial decisions with little or no training on the subject of money.I often look ahead to the new millennium and wonder what will happen when we have millions of people who will need financial and medical assistance. They will be dependent on their families or the government for financial support. What will happen when Medicare and Social Security run out of money? How will a nation survive if teaching children about money continues to be left to parents-most of whom will be, or already are, poor?Because I had two influential fathers, I learned from both of them. I had to think about each dad's advice, and in doing so, I gained valuableinsight into the power and effect of one's thoughts on one's life. For example, one dad had a habit of saying, "I can't afford it." The other dad forbade those words to be used. He insisted I say, "How can I afford it?" One is a statement, and the other is a question. One lets you off the hook, and the other forces you to think. My soon-to-be-rich dad would explain that by automatically saying the words "I can't afford it," your brain stops working. By asking the question "How can I afford it?" your brain is put to work. He did not mean buy everything you wanted. He was fanatical about exercising your mind, the most powerful computer in the world. "My brain gets stronger every day because I exercise it. The stronger it gets, the more money I can make." He believed that automatically saying "I can't afford it" was a sign of mental laziness.Although both dads worked hard, I noticed that one dad had a habit of putting his brain to sleep when it came to money matters, and the other had a habit of exercising his brain. The long-term result was that one dad grew stronger financially and the other grew weaker. It is not much different from a person who goes to the gym to exercise on a regular basis versus someone who sits on the couch watching television. Proper physical exercise increases your chances for health, and proper mental exercise increases your chances for wealth. Laziness decreases both health and wealth.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, butbecause 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.Lesson Four:The History of and The Power of CorporationIncome=ExpenseAsset < Liability
I would say, the skills to manage these three apply to anything, not just entrepreneurs. The three matter in the way you live your life as an individual, or as part of a family, a business, a charitable organization, a city or a nation.Each of these skills is enhanced by the mastery of self discipline. I do not take the saying "pay yourself first" lightly.The Richest Man in Babylon, by George Classen, is where the statement "pay yourself first" comes from. Millions of copies have been sold. But while millions of people freely repeat that powerful statement, few follow the advice. As I said, financial literacy allows one to read numbers, and numbers tell the story. By looking at a person's income statement and balance sheet, I can readily see if people who spout the words "pay yourself first" actually practice what they preach.A picture is worth a thousand words. So let's again compare the financial statements of people who pay themselves first against someone who doesn't. People who pay themselves firstGetting StartedAbout the Authors-Robert T. Kiyosaki
As he climbed into his pickup truck, outside of his little convenience store, he said, "Keep working boys, but the sooner you forget about needing a paycheck, the easier your adult life will be. Keep using your brain, work for free, and soon your mind will show you ways of making money far beyond what I could ever pay you. You will see things that other people never see. Opportunities right in front of their noses. Most people never see these opportunities because they're looking for money and security, so that's all they get. The moment you see one opportunity, you will see them for the rest of your life. The moment you do that, I'll teach you something else. Learn this, and you'll avoid one of life's biggest traps. You'll never, ever, touch that Tar Baby."Mike and I picked up our things from the store and waved goodbye to Mrs. Martin. We went back to the park, to the same picnic bench, and spent several more hours thinking and talking.We spent the next week at school, thinking and talking. For two more weeks, we kept thinking, talking, and working for free.At the end of the second Saturday, I was again saying goodbye to Mrs. Martin and looking at the comic-book stand with a longing gaze. The hard thing about not even getting 30 cents every Saturday was that I didn't have any money to buy comic books. Suddenly, as Mrs. Martin was saying goodbye to Mike and me, I saw something she was doing that I had never seen her do before. I mean, I had seen her do it, but I never took notice of it.Mrs. Martin was cutting the front page of the comic book in half. She was keeping the top half of the comic book cover and throwing the rest of the comic book into a large brown cardboard box. When I asked her what she did with the comic books, she said, "I throw them away. I give the top half of the cover back to the comic-book distributor for credit when he brings in the new comics. He's coming in an hour."Mike and I waited for an hour. Soon the distributor arrived and I asked him if we could have the comic books. To which he replied, "You can have them if you work for this store and do not resell them."Our partnership was revived. Mike's mom had a spare room in the basement that no one used. We cleaned it out, and began piling hundreds of comic books in that room. Soon our comic-book library was open to the public. We hired Mike's younger sister, who loved to study, to be head librarian. She charged each child 10 cents admission to the library, which was open from 2:30 to 4:30 p.m. every day after school. The customers, the children of the neighborhood, could read as many comics as they could in two hours. It was a bargain for them since a comic costs 10 cents each, and they could read five or six in two hours.Mike's sister would check the kids as they left, to make sure they weren't borrowing any comic books. She also kept the books, logging in how many kids showed up each day, who they were, and any comments they might have. Mike and I averaged .50 per week over a threemonth period. We paid his sister a week and allowed her to read the comics for free, which she rarely did since she was always studying.Mike and F kept our agreement by working in the store every Saturday and collecting all the comic books from the different stores. We kept our agreement to the distributor by not selling any comic books. We burned them once they got too tattered. We tried opening a branch office, but we could never quite find someone as dedicated as Mike's sister we could trust.At an early age, we found out how hard it was to find good staff.Three months after the library first opened, a fight broke out in the room. Some bullies from another neighborhood pushed their way in and started it. Mike's dad suggested we shut down the business. So our comic-book business shut down, and we stopped working on Saturdays at the convenience store. Anyway, rich dad was excited because he had new things he wanted to teach us. He was happy because we had learned our first lesson so well. We had learned to have money work for us. By not getting paid for our work at the store, we were forced to use our imaginations to identify an opportunity to make money. By starting our own business, the comic-book library, we were in control of our own finances, not dependent on an employer. The best part was that our business generated money for us, even when we weren't physically there. Our money worked for us. Instead of paying us money, rich dad had given us so much more.黑龙江国家电网招聘>>Just What I Was Looking For?Learn from history. All the big companies on the stock exchange started out as small companies. Colonel Sanders did not get rich until after he lost everything in his 60s. Bill Gates was one of the richest men in the world before he was 30.
?Look for new ideas. For new investing ideas, I go to bookstores and look for books on different and unique subjects. I call them formulas. I buy how-to books on a formula I know nothing about. For example, it was in the bookstore that I found the book The 16 Percent Solution, by Joel Moskowitz. I bought the book and read it. TAKE ACTION! The next Thursday, I did exactly as the book said. Step by step. I have also done that with finding real estate bargains in attorneys' offices and in banks. Most people do not take action, or they let someone talk them out of whatever new formula they are studying. My neighbor told me why 16 percent would not work. I did not listen to him because he's never done it.No. 2 is investing. What I call the science of money making money. This involves strategies and formulas. This is the right brain side, or the creative side.
As an employee who is also a homeowner, your working efforts are generally as follows:1. You work for someone else. Most people, working for a paycheck, are making the owner, or the shareholders richer. Your efforts and success will help provide for the owner's success and retirement.2. You work for the government. The government takes its share from your paycheck before you even see it. By working harder, you simply increase the amount of taxes taken by the government - most people work from January to May just for the government.3. You work for the bank. After taxes, your next largest expense is usually your mortgage and credit card debt.The problem with simply working harder is that each of these three levels takes a greater share of your increased efforts. You need to learn how to have your increased efforts benefit you and your family directly.Once you have decided to concentrate on minding your own business, how do you set your goals? For most people, they must keep their profession and rely on their wages to fund their acquisition of assets.As their assets grow, how do they measure the extent of their success? When does someone realize that they are rich, that they have wealth? As well as having my own definitions for assets and liabilities, I also have my own definition for wealth. Actually I borrowed it from a man named Buckminster Fuller. Some call him a quack, and others call him a living genius. Years ago he got all the architects buzzing because he applied for a patent in 1961 for something called a geodesic dome. But in the application, Fuller also said something about wealth. It was pretty confusing at first, but after reading it for awhile, it began to make some sense: Wealth is a person's ability to survive so many number of days forward... or if I stopped working today, how long could I survive?Unlike net worth-the difference between your assets and liabilities, which is often filled with a person's expensive junk and opinions of what things are worth-this definition creates the possibility for developing a truly accurate measurement. I could now measure and really know where I was in terms of my goal to become financially independent.Although net worth often includes these non-cash-producing assets, like stuff you bought that now sits in your garage, wealth measures how much money your money is making and, therefore, your financial survivability.Wealth is the measure of the cash flow from the asset column compared with the expense column.Let's use an example. Let's say I have cash flow from my asset column of S"J,000 a month. And I have monthly expenses of 52,000. What is my wealth?Let's go back to Buckminster Fuller's definition. Using his definition, how many days forward can I survive? And let's assume a 30-day month. By that definition, I have enough cash flow for half a month.When I have achieved ,000 a month cash flow from my assets, then I will be wealthy.So I am not yet rich, but I am wealthy. I now have income generated from assets each month that fully cover my monthly expenses. If I want to increase my expenses, I first must increase my cash flow from assets to maintain this level of wealth. Take notice that it is at this point that I no longer am dependent on my wages. I have focused on and been successful in building an asset column that has made me financially independent. If I quit my job today, I would be able to cover my monthly expenses with the cash flow from my assets.My next goal would be to have the excess cash flow from my assets reinvested into the asset column. The more money that goes into my asset column, the more my asset column grows. The more my assets grow, the more my cash flow grows. And as long as I keep my expenses less than the cash flow from these assets, I will grow richer, with more and more income from sources other than my physical labor.As this reinvestment process continues, I am well on my way to being rich. The actual definition of rich is in the eye of the beholder. You can never be too rich.Just remember this simple observation: The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets. So how do I start minding my own business? What is the answer? Listen to the founder of McDonald's.Chapter 3Most people fail to realize that in life, it's not how much money you make, it's how much money you keep. We have all heard stories of lottery winners who are poor, then suddenly rich, then poor again. They win millions and are soon back to where they started. Or stories of professional athletes, who, at the age of 24, are earning millions of dollars a year, and are sleeping under a bridge by age 34. In the paper this morning, as I write this, there is a story of a young basketball player who a year ago had millions. Today, he claims his friends, attorney and accountant took his money, and now he works at a car wash for minimum wage.
9. THE NEED FOR HEROES: The power of myth. When I was a kid, I greatly admired Willie Mays, Hank Aaron, Yogi Berra. They were my heroes. As a kid playing Little League, I wanted to be just like them. I treasured their baseball cards. I wanted to know everything about them. I knew the stats, the RBI, the ERAs, their batting averages, how much they got paid, and how they came up 1 from the minors. I wanted to know everything because I wanted to be just like them.Every time, as a 9 or 10 year-old kid, when I stepped up to bat or played first base or catcher, I wasn't me. I was Yogi or Hank. It's one of the most powerful ways we learn that we often lose as adults. We lose our heroes. We lose our naivete.Today, I watch young kids playing basketball near my home. On the court they're not little Johnny; they're Michael Jordan, Sir Charles or Clyde. Copying or emulating heroes is true power learning. And that is why when someone like O.J. Simpson falls from grace, there is such a huge outcry.There is more than just a courtroom trial. It is the loss of a hero. Someone people grew up with, looked up to, and wanted to be like. Suddenly we need to rid ourselves of that person.I have new heroes as I grow older. I have golf heroes such as Peter Jacobsen, Fred Couples and Tiger Woods. I copy their swings and do my best to read everything I can about them. I also have heroes such as Donald Trump, Warren Buffett, Peter Lynch, George Soros and Jim Rogers. In my older years, I know their stats just like I knew the ERAs and RBI of my baseball heroes. I follow what Warren Buffett invests in, and read anything I can about his point of view on the market. I read Peter Lynch's book to understand how he chooses stocks. And I read about Donald Trump, trying to find out how he negotiates and puts deals together.Just as I was not me when I was up to bat, when I'm in the market or I'm negotiating a deal, I am subconsciously acting with the bravado of Trump. Or when analyzing a trend, I look at it as though Peter Lynch were doing it. By having heroes, we tap into a tremendous source of raw genius.But heroes do more than simply inspire us. Heroes make things look easy. It's the making it look easy that convinces us to want to be just like them. "If they can do it, so can I."When it comes to investing, too many people make it sound hard. Instead find heroes who make it look easy.
黑龙江国家电网招聘>>Lesson Six:Work to Learn - Don't Work for MoneyJust What I Was Looking ForA WARNING: Don't listen to poor or frightened people. I have such friends, and I love them dearly, but they are the "Chicken Littles" of life. When it comes to money, especially investments, "The sky is always falling." They can always tell you why something won't work. The problem is, people listen to them, but people who blindly accept doom-and-gloom information are also "Chicken Littles." As that old saying goes, "Chickens of a feather agree together."If you watch CNBC, which is a goldmine of investment information, they often have a panel of so-called "experts." One expert will say the market is going to crash, and the other will say it's going to boom. If you're smart, you listen to both. Keep your mind open because both have valid points. Unfortunately, most poor people listen to "Chicken Little."I have had more close friends try to talk me out of a deal or an investment. A few years ago, a friend told me he was excited because he found a 6 percent certificate of deposit. I told him I earn 16 percent from the state government. The next day he sent me an article about why my investment was dangerous. I have received 16 percent for years now, and he still receives 6 percent.I would say that one of the hardest things about wealth building is to be true to yourself and be willing to not go along with the crowd. For in the market, it is usually the crowd that shows up late and is slaughtered. If a great deal is on the front page, it's too late in most instances. Look for a new deal. As we used to say as surfers: "There is always another wave." People who hurry and catch a wave late usually are the ones who wipe out.Smart investors don't time markets. If they miss a wave, they search for the next one and get themselves in position. Why this is hard for most investors is because buying what is not popular is frightening to them. Timid investors are like sheep going along with the crowd. Or their greed gets them in when wise investors have already taken their profits and moved on. Wise investors buy an investment when it's not popular. They know their profits are made when they buy, not when they sell. They wait patiently. As I said, they do not time the market. Just like a surfer, they get in position for the next big swell.It's all "insider trading." There are forms of insider trading that are illegal, and there are forms of insider trading that are legal. But either way, it's insider trading. The only distinction is how far away from the inside are you? The reason you want to have rich friends who are close to the inside is because that is where the money is made. It's made on information. You want to hear about the next boom, get in and get out before the next bust. I'm not saying do it illegally, but the sooner you know, the better your chances are for profits with minimal risk. That is what friends are for. And that is financial intelligence."Well, you boys had better start thinking. You're staring at one of life's biggest lessons. If you learn the lesson, you'll enjoy a life of great freedom and security. If you don't learn the lesson, you'll wind up like Mrs. Martin and most of the people playing softball in this park. They work very hard, for little money, clinging to the illusion of job security, looking forward to a three-week vacation each year and a skimpy pension after forty-five years of work. If that excites you, I'll give you a raise to 25 cents an hour.""But these are good hard-working people. Are you making fun of them?" I demanded.A smile came over rich dad's face."Mrs. Martin is like a mother to me. I would never be that cruel. I may sound cruel because I'm doing my best to point something out to the two of you. I want to expand your point of view so you can see something. Something most people never have the benefit of seeing because their vision is too narrow. Most people never see the trap they are in."Mike and I sat there uncertain of his message. He sounded cruel, yet we could sense he was desperately wanting us to know something.With a smile, rich dad said, "Doesn't that 25 cents an hour sound good? Doesn't it make your heart beat a little faster."I shook my head "no," but it really did. Twenty five cents an hour would be big bucks to me."OK, I'll pay you a dollar an hour," rich dad said, with a sly grin.Now my heart was beginning to race. My brain was screaming,An"Take it. Take it." I could not believe what I was hearing. Still, I said nothing."OK, an hour."My little 9-year-old brain and heart nearly exploded. After all, it was 1956 and being paid an hour would have made me the richest kid in the world. I couldn't imagine earning that kind of money. I wanted to say "yes." I wanted the deal. I could see a new bicycle, new baseball glove, and adoration of my friends when I flashed some cash. On top of that, Jimmy and his rich friends could never call me poor again. But somehow my mouth stayed silent.Maybe my brain had overheated and blown a fuse. But deep down, I badly wanted that an hour.The ice cream had melted and was running down my hand. The ice-cream stick was empty, and under it was a sticky mess of vanilla and chocolate that ants were enjoying. Rich dad was looking at two boys staring back at him, eyes wide open and brains empty. He knew he was testing us, and he knew there was a part of our emotions that wanted to take the deal. He knew that each human being has a weak and needy part of their soul that can be bought. And he knew that each human being also had a part of their soul that was strong and filled with a resolve that could never be bought. It was only a question of which one was stronger. He had tested thousands of souls in his life. He tested souls every time he interviewed someone for a job."OK, an hour."Suddenly there was a silence from inside me. Something had changed. The offer was too big and had gotten ridiculous. Not too many grownups in 1956 made more than an hour. The temptation disappeared, and a calm set in. Slowly I turned to my left to look at Mike. He looked back at me. The part of my soul that was weak and needy was silenced. The part of me that had no price took over. There was a calm and a certainty about money that entered my brain and my soul. I knew Mike had gotten to that point also. "Good," rich dad said softly. "Most people have a price. And they have a price because of human emotions named fear and greed. First, the fear of being without money motivates us to work hard, and then once we get that paycheck, greed or desire starts us thinking about all the wonderful things money can buy. The pattern is then set.""What pattern?" I asked."The pattern of get up, go to work, pay bills, get up, go to work, pay bills... Their lives are then run forever by two emotions, fear and greed. Offer them more money, and they continue the cycle by also increasing their spending. This is what I call the Rat Race.""There is another way?" Mike asked."Yes," said rich dad slowly. "But only a few people find it.""And what is that way?" Mike asked."That's what I hope you boys will find out as you work and study with me. That is why I took away all forms of pay.""Any hints?" Mike asked. "We're kind of tired of working hard, especially for nothing.""Well, the first step is telling the truth," said rich dad."We haven't been lying." I said."I did not say you were lying. I said to tell the truth," rich dad cameback."The truth about what?" I asked."How you're feeling," rich dad said. "You don't have to say it to anyone else. Just yourself.""You mean the people in this park, the people who work for you, Mrs. Martin, they don't do that?" I asked."I doubt it," said rich dad. "Instead, they feel the fear of not having money. Instead of confronting the fear, they react instead of think. They react emotionally instead of using their heads," rich dad said, tapping us on our heads. "'Then, they get a few bucks in their hands, and again the emotion of joy and desire and greed take over, and again they react, instead of think.""So their emotions do their thinking," Mike said."That's correct," said rich dad. "Instead of telling the truth about how they feel, they react to their feeling, fail to think. They feel the fear, they go to work, hoping that money will soothe the fear, but it doesn't. That old fear haunts them, and they go back to work, hoping again that money will calm their fears, and again it doesn't. Fear has them in this trap of working, earning money, working, earning money, hoping the fear will go away. But every day they get up, and that old fear wakes up with them. For millions of people, that old fear keeps them awake all night, causing a night of turmoil and worry. So they get up and go to work, hoping that a paycheck will kill that fear gnawing at their soul. Money is running their lives, and they refuse to tell the truth about that.Money is in control of their emotions and hence their souls."Rich dad sat quietly, letting his words sink in. Mike and I heard what he said, but really did not understand fully what he was talking about. I just knew that I often wondered why grownups hurried off to work. It did not seem like much fun, and they never looked that happy, but something kept them hurrying off to work.Realizing we had absorbed as much as possible of what he was talking about, rich dad said, "I want you boys to avoid that trap. That is really what I want to teach you. Not just to be rich, because being rich does not solve the problem.""It doesn't?" I asked, surprised."No, it doesn't. Let me finish the other emotion, which is desire. Some call it greed, but I prefer desire. It is perfectly normal to desire something better, prettier, more fun or exciting. So people also work for money because of desire. They desire money for the joy they think it can buy. But the joy that money brings is often short lived, and they soon need more money for more joy, more pleasure, more comfort, more security. So they keep working, thinking money will soothe their souls that is troubled by fear and desire. But money cannot do that.""Even rich people?" Mike asked."Rich people included," said rich dad. "In fact, the reason many rich people are rich is not because of desire but because of fear. They actually think that money can eliminate that fear of not having money, of being poor, so they amass tons of it only tofind out the fear gets worse. They now fear losing it. I have friends who keep working even though they have plenty. I know people who have millions who are more afraid now than when they were poor. They're terrified of losing all their money. The fears that drove them to get rich got worse. That weak and needy part of their soul is actually screaming louder. They don't want to lose the big houses, the cars, the high life that money has bought them. They worry about what their friends would say if they lost all their money. Many are emotionally desperate and neurotic, although they look rich and have more money.""So is a poor man happier?" I asked."No, I don't think so," replied rich dad. "The avoidance of money is just as psychotic as being attached to money."As if on cue, the town derelict went past our table, stopping by the large rubbish can and rummaging around in it. The three of us watched him with great interest, when before we probably would have just ignored him.Rich dad pulled a dollar out of his wallet and gestured to the older man. Seeing the money, the derelict came over immediately, took the bill, thanked rich dad profusely and hurried off ecstatic with his good fortune."He's not much different from most of my employees," said rich dad. "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, then why are they working? That kind of thinking is probably more psychotic than a person who hoards money."As I sat there listening to my rich dad, my mind was flashing back to the countless times my own dad said, "I'm not interested in money." He said those words often. He also covered himself by always saying, "I work because I love my job.""So what do we do?" I asked. "Not work for money until all traces of fear and greed are gone?""No, that would be a waste of time," said rich dad. "Emotions are what make us human. Make us real. The word `emotion' stands for energy in motion. Be truthful about your emotions, and use your mind and emotions in your favor, not against yourself.""Whoa!" said Mike."Don't worry about what I just said. It will make more sense in years to come. just be an observer, not a reactor, to your emotions. Most people do not know that it's their emotions that are doing the thinking. Your emotions are your emotions, but you have got to learn to do your own thinking.""Can you give me an example?" I asked."Sure," replied rich dad. "When a person says, `I need to find a job,' it's most likely an emotion doing the thinking. Fear of not having money generates that thought.""But people do need money if they have bills to pay," I said."Sure they do," smiled rich dad. "All I'm saying is that it's fear that is all too often doing the thinking.""I don't understand," said Mike."For example," said rich dad. "If the fear of not having enough money arises, instead of immediately running out to get a job so they can earn a few bucks to kill the fear, they instead might ask themselves this question. `Will a job be the best solution to this fear over the long run?' In my opinion, the answer is `no.' Especially when you look over a person's lifetime. A job is really a short-term solution to a long-term problem.""But my dad is always saying, `Stay in school, get good grades, so you can find a safe, secure job.' I spoke out, somewhat confused."Yes, I understand he says that," said rich dad, smiling. "Most people recommend that, and it's a good idea for most people. But people make that recommendation primarily out of fear.""You mean my dad says that because he's afraid?""Yes," said rich dad. "He's terrified that you won't be able to earn money and won't fit into society. Don't get me wrong. He loves you and wants the best for you. And I think his fear is justified. An education and a job are important. But it won't handle the fear. You see, that same fear that makes him get up in the morning to earn a few bucks is the fear that is causing him to be so fanatical about you going to school.""So what do you recommend?" I asked."I want to teach you to master the power of money. Not be afraid of it. And they don't teach that in school. If you don't learn it, you become a slave to money."It was finally making sense. He did want us to widen our views. To . see what Mrs. Martin could not see, his employees could not see, or my dad for that matter. He used examples that sounded cruel at the time, but I've never forgotten them. My vision widened that day, and I could begin to see the trap that lay ahead for most people."You see, we're all employees ultimately. We just work at different levels," said rich dad. "I just want you boys to have a chance to avoid the trap. The trap caused by those two emotions, fear and desire. Use them in your favor, not against you. That's what I want to teach you. I'm not interested in just teaching you to make a pile of money. That won't handle the fear or desire. If you don't first handle fear and desire, and you get rich, you'll only be a high-paid slave.""So how do we avoid the trap?" I asked."The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich. It's selfinflicted fear and ignorance that keeps people trapped. So you boys go to school and get your college degrees. I'll teach you how to stay out of the trap."The pieces of the puzzle were appearing. My highly educated dad had a great education and a great career. But school never told him how to handle money or his fears. It became clear that I could learn different and important things from two fathers."So you've been talking about the fear of not having money. How does the desire of money affect our thinking?" Mike asked."How did you feel when I tempted you with a pay raise? Did you notice your desires rising?"We nodded our heads."By not giving in to your emotions, you were able to delay your reactions and think. That is most important. We will always have emotions of fear and greed. From here on in, it is most important for you to use those emotions to your advantage and for the long term, and not simply let your emotions run you by controlling your thinking. Most people use fear and greed against themselves. That's the start of ignorance. Most people live their lives chasing paychecks, pay raises and job security because of the emotions of desire and fear, not really questioning where those emotion-driven thoughts are leading them. It's just like the picture of a donkey, dragging a cart, with its owner dangling a carrot just in front of the donkey's nose. The donkey's owner may be going where he wants to go, but the donkey is chasing an illusion. Tomorrow there will only be another carrot for the donkey.""You mean the moment I began to picture a new baseball glove, candy and toys, that's like a carrot to a donkey?" Mike asked."Yeah. And as you get older, your toys get more expensive. A new car, a boat and a big house to impress your friends," said rich dad with a smile. "Fear pushes you out the door, and desire calls to you. Enticing you toward the rocks. That's the trap.""So what's the answer," Mike asked."What intensifies fear and desire is ignorance. That is why rich people with lots of money often have more fear the richer they get. Money is the carrot, the illusion. If the donkey could see the whole picture, it might rethink its choice to chase the carrot."Rich dad went on to explain that a human's life is a struggle between ignorance and illumination.He explained that once a person stops searching for information and knowledge of one's self, ignorance sets in. That struggle is a moment-to-moment decision-to learn to open or close one's mind."Look, school is very, very important. You go to school to learn a skill or profession so as to be a contributing member of society. Every culture needs teachers, doctors, mechanics, artists, cooks, business people, police officers, firefighters, soldiers. Schools train them so our culture can thrive and flourish," said rich dad. "Unfortunately, for many people, school is the end, not the beginning."There was a long silence. Rich dad was smiling. I did not comprehend everything he said that day. But as with most great teachers, whose words continue to teach for years, often long after they're gone, his words are still with me today."I've been a little cruel today," said rich dad. "Cruel for a reason. I want you to always remember this talk. I want you to always think of Mrs. Martin. I want you always to think of the donkey. Never forget, because your two emotions, fear and desire, can lead you into life's biggest trap, if you're not aware of them controlling your thinking. To spend your life living in fear, never exploring your dreams, is cruel. To work hard for money, thinking that money will buy you things that will make you happy is also cruel. To wake up in the middle of the night terrified about paying bills is a horrible way to live. To live a life dictated by the size of a paycheck is not really a life. Thinking that a job will make you feel secure is lying to yourself. That's cruel, and that's the trap I want you to avoid, if possible. I've seen how money runs people's lives. Don't let that happen to you. Please don't let money run your life."A softball rolled under our table. Rich dad picked it up and threw it back."So what does ignorance have to do with greed and fear?" I asked."Because it is ignorance about money that causes so much greed and so much fear," said rich dad. "Let me give you some examples. A doctor, wanting more money to better provide for his family, raises his fees. By raising his fees, it makes health care more expensive for everyone. Now, it hurts the poor people the most, so poor people have worse health than those with money."Because the doctors raise their rates, the attorneys raise their rates. Because the attorneys' rates have gone up, schoolteachers want a raise, which raises our taxes, and on and on and on. Soon, there will be such a horrifying gap between the rich and the poor that chaos will break out and another great civilization will collapse. Great civilizations collapsed when the gap between the haves and havenots was too great. America is on the same course, proving once again that history repeats itself, because we do not learn from history. We only memorize historical dates and names, not the lesson."Aren't prices supposed to go up?" I asked."Not in an educated society with a well-run government. Prices should actually come down. Of course, that is often only true in theory. Prices go up because of greed and fear caused by ignorance. If schools taught people about money, there would be more money and lower prices, but schools focus only on teaching people to work for money, not how to harness money's power.""But don't we have business schools?" Mike asked. "Aren't you encouraging me to go to business school for my master's degree?""Yes," said rich dad. "But all too often, business schools train employees who are sophisticated bean counters. Heaven forbid a bean counter takes over a business. All they do is look at the numbers, fire people and kill the business. I know because I hire bean counters. All they think about is cutting costs and raising prices, which cause more problems. Bean counting is important. I wish more people knew it, but it, too, is not the whole picture," added rich dad angrily."So is there an answer?" asked Mike."Yes," said rich dad. "Learn to use your emotions to think, not think with your emotions. When you boys mastered your emotions, first by agreeing to work for free, I knew there was hope. When you again resisted your emotions when I tempted you with more money, you were again learning to think in spite of being emotionally charged. That's the first step.""Why is that step so important" I asked."Well, that's up to you to find out. If you want to learn, I'll take you boys into the briar patch. That place where almost everyone else avoids. I'll take you to that place where most people are afraid to go. If you go with me, you'll let go of the idea of working for money and instead learn to have money work for you.""And what will we get if we go with you. What if we agree to learn from you? What will we get?" I asked."The same thing Briar Rabbit got," said rich dad. "Freedom from the Tar Baby.""Is there a briar patch?" I asked."Yes," said rich dad. "The briar patch is our fear and our greed. Going into our fear and confronting our greed, our weaknesses, our neediness is the way out. And the way out is through the mind, by choosing our thoughts.""Choosing our thoughts?" Mike asked, puzzled."Yes. Choosing what we think rather than reacting to our emotions. Instead of just getting up and going to work to solve your problems, just because the fear of not having the money to pay your bills is scaring you. Thinking would be taking the time to ask yourself a question. A question like, `Is working harder at this the best solution to this problem?' Most people are so terrified at not telling themselves the truth-that fear is in control-that they cannot think, and instead run out the door. Tar baby is in control. That's what I mean by choosing your thoughts.""And how do we do that?" Mike asked."That's what I will be teaching you. I'll be teaching you to have a choice of thoughts to consider, rather than knee-jerk reacting, like gulping down your morning coffee and running out the door."Remember what I said before: A job is only a short-term solution to a long-term problem. Most people have only one problem in mind, and it's short term. It's the bills at the end of the month, the Tar Baby. Money now runs their lives. Or should I say the fear and ignorance about money. So they do as their parents did, get up every day and go work for money. Not having the time to say, `Is there another way?' Their emotions now control their thinking, not their heads.""Can you tell the difference between emotions thinking and the head thinking?" Mike asked."Oh, yes. I hear it all the time," said rich dad. "I hear things like, `Well, everyone has to work.' Or `The rich are crooks.' Or `I'll get another job. I deserve this raise. You can't push me around.' Or `I like this job because it's secure.' Instead of, `Is there something I'm missing here?' which breaks the emotional thought, and gives you time to think clearly."I must admit, it was a great lesson to be getting. To know when someone was speaking out of emotions or out of clear thought. It was a lesson that served me well for life. Especially when I was the one speaking out of reaction and not from clear thought.As we headed back to the store, rich dad explained that the rich really did "make money." They did not work for it. He went on to explain that when Mike and I were casting 5-cent pieces out of lead, thinking we were making money, we were very close to thinking the way the rich think. The problem was that it was illegal for us to do it. It was legal for the government and banks to do it, but not us. He explained that there are legal ways to make money and illegal ways.Rich dad went on to explain that the rich know that money is an illusion, truly like the carrot for the donkey. It's only out of fear and greed that the illusion of money is held together by billions of people thinking that money is real. Money is really made up. It was only because of the illusion of confidence and the ignorance of the masses that the house of cards stood standing. "In fact," he said, "in many ways the donkey's carrot was more valuable than money."He talked about the gold standard that America was on, and that each dollar bill was actually a silver certificate. What concerned him was the rumor that we would someday go off the gold standard and our dollars would no longer be silver certificates."When that happens, boys, all hell is going to break loose. The poor, the middle class and the ignorant will have their lives ruined simply because they will continue to believe that money is real and that the company they work for, or the government, will look after them."We really did not understand what he was saying that day, but over the years it made more and more sense.Seeing What Others Miss
As part of your overall financial strategy, we strongly recommend owning your own corporation wrapped around your assets.Chapter 3