Rich Dad Poor Dad defined a term, and helped put perspective on the Rat Race cliche.
Basically, human nature teaches us to buy more or bigger (more expensive) things when we receive a promotion or a monetary raise from our job.
So, our expenses are never less than our earnings. We fail to save money, let alone invest money.
This cycle repeats itself until we die.
What really woke me up to this whole rat race thing was when Robert Kiyosaki said, “If you think your home is your biggest asset, you’re in trouble.”
Wait, that’s exactly what I’ve always thought. And now you’re telling me that it’s wrong?
Rich Dad Poor Dad.
Here is the life-changing take-away:
When you work for someone else, you:
- Pay Taxes
When you work for yourself, you:
- Pay Taxes
I ain’t the brightest bulb in the box, but I get this. It took a lifetime, and a great book, but I get it now.
Of course, not knowing this most basic of economic structure is very embarrassing.
My Dad had two side businesses. My Grandfather had one too. My wife’s Grammy ran a one-room grocery store for 45 years.
What did they teach me?
How is that possible?
There is no good or decent answer, except to say, “That’s just the way it was back then.”
What a shame. But it is what it is. No bitterness. Lost opportunity to be sure. But no bitterness.
Now, only hope, determination and of course, indomitable will. Like the early pioneers.
Wow. Ever heard that phrase, “Time flies when you’re having fun?” Can’t believe it’s been nearly two weeks since I started writing about the two top leadership books I read in 2009.
Guess what, I never shared the second book. The Last Lecture was the second great leadership book I read in 2009. And the first?
Rich Dad Poor Dad, by Robert Kiyosaki.
How many knew I’ve had a Rich Dad Poor Dad book review over on the right hand column all 2009?
Money. Can’t live with it, can’t live without it. Money has always been my biggest stressor.
Eventually, I learned a very simple and very profound rule. It is the first rule that should be learned.
What made this most basic of rules so elusive for me, is that I did not subscribe to common sense. A million reasons for that, which I’ll not even attempt to address.
The second rule I learned is have a business. After reading “Rich Dad Poor Dad” last Christmas, my whole mindset about money was changed forever….