The book, “Rich Dad, Poor Dad” is a story about two father figures which preached to the young boy and his friend different philosophies about money. One father had a college degree but was financially in debt while the other father dropped out of high school and would end up becoming one of the rich. The problem was the poor dad was not yet poor while the rich dad was not yet rich;therefore, the young boy had to use critical thinking.
Many entrepreneurs and successful people have read and recommended this book such as Will Smith, and a millionaire I met in person Jobby Meeks. This book shatters many strong held beliefs such as having a higher income will make you financially free which is not the case.
Bellow are some of my favorite passages from the book which resonated with me.
-Having two dads advising me offered me the choice of contrasting point of view;one one of a rich man and one of a poor man… The problem was, the rich man was not rich yet and the poor man not yet poor… they had very different points of views 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”
-Money is not taught in schools. Schools focus on scholastic and professional skills, but not financial skills. This explains how smart bankers, doctors and accountants who earned excellent grades in school may still struggle financially all 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.
-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 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.
-One dad believed in a company or the government taking care of you and your needs… The other believed in total financial self-reliance.
-Money is one form of power. But what is more powerful is financial education.
-”Boys,” he said. “You’re only poor if you give up. The most important thing is that you did something. Most people only talk and dream of getting rich… I will say it again. Keep going. Don’t quit.
-“ A nice car and a nice house does not necessarily mean you’re rich or you know how to make money”… Your dad is different Mike. He seems to be building an empire , and I suspect in a few years he will be a very rich man.
– “ Dad’s kind of different. He teaches differently from your dad. Your mom and dad lecture a lot. My dad is quiet and a man of few words. You just wait till this Saturday.
– “You’ll have lots of friends who really like you because you were such a nice hard-working guy. You spent a life playing it safe, doing the right things. But the truth is, 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.”
You boys are the first people that have ever asked me to teach them how to make money. I have 150 employees, and none of them asked me what I know about money.
” You can’t do that here.” “That is against the law.” “You’re lying.” I hear those comments much more often than, ” can you show me how to do that?”
“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 may sounds 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.”
He knew he was testing us… 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 tested thousands of souls in his life… “Good,” rich dad said softly. “ Most people have a price. And they have a price because of human emotions named fear and greed.”
– “ 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.”
Be truthful about your emotions, and use your mind and emotions in your favor, not against yourself…just be an observer, not a reactor, to your emotions.
History repeats itself, because we do not learn from history. We only memorize historical dates and names, not the lesson.
I have several friends who have generated over a billion dollars in their short lifetime. The three of them report the same phenomenon:Their friends who have no money have never come to them to ask them how they did it. But they do come asking for one of two things, or both:1. A loan, or 2. a job
-Here was a man who had not gone along with the crowd. He was a man who did his own thinking and detested the words, “ We have to do it this way because that’s the way everyone else does it.”