The Confrontation and How Life Teaches You

“Well, you’re not keeping your end of the bargain,” I blurted out, nearly in tears. “You said that you would teach me if I worked for you. I’ve worked hard. I’ve given up my baseball games to work for you, but you haven’t taught me anything. You are a crook... You’re greedy. You made me wait and don’t show me any respect.”

Rich dad rocked back in his swivel chair, hands up to his chin, and stared at me.

“Not bad,” he said. “In less than a month, you sound like most of my employees.”

How Life Teaches You

“I am teaching you,” rich dad said quietly.

“What have you taught me? Nothing!” I said angrily. “You haven’t even talked to me once.”

“Does teaching mean talking or a lecture?” rich dad asked. “That’s how they teach you in school. But that is not how life teaches you, and I would say that life is the best teacher of all. Most of the time, life does not talk to you. It just sort of pushes you around. Each push is life saying, ‘Wake up. There’s something I want you to learn.’”

Two Ways People React to Life's Pushes:

1.      Some just let life push them around. They live life playing it safe, terrified of taking risks. Deep down, the fear of losing is greater than the excitement of winning.

2.      Others get angry and push back. But they push back against their boss, their job, or their spouse. They do not know it’s life that’s pushing.

Lesson Number One: The Core Secret

“You boys are the first people who have ever asked me to teach them how to make money,” rich dad said. “I have more than 150 employees... They ask me for a job and a paycheck, but never to teach them about money. So I decided to design a course that mirrored real life. I decided to let life push you around a bit so you could hear me. That’s why I only paid you 10 cents.”

“Stop blaming me and thinking I’m the problem,” rich dad continued. “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.”

Finally, I looked up and asked, “So what will solve the problem?”

“This,” he said, leaning forward and tapping me gently on the head. “This stuff between your ears.”

The Two Paths

At the age of nine, I understood that both dads wanted me to learn, but they wanted me to study completely different things.

Poor Dad's Recommendation	Rich Dad's Recommendation
“Study hard, get good grades, so you can find a safe, secure job with a big company. And make sure it has excellent benefits.”	“Learn how money works so you can have money work for you, instead of spending your life working for it.”

The Trap of Fear and Taxes

“It’s fear that keeps most people working at a job,” rich dad explained. “The fear of not paying their bills, the fear of being fired, the fear of not having enough money. Most people become a slave to money—and then get angry at their boss.”

“How did you feel when Mrs. Martin dropped three dimes in your hand?” rich dad asked.

“I felt like it wasn’t enough. I was disappointed,” I said.

“And that is how most employees feel when they look at their paychecks—especially after all the tax and other deductions are taken out. The government always takes its share first. You’re taxed when you earn. You’re taxed when you spend. You’re taxed when you save. You’re taxed when you die.”

The Ultimate Test: Working for Free

“So do you still have the passion to learn?” asked rich dad.

I nodded my head.

“Good,” said rich dad. “Now get back to work. This time, I will pay you nothing.”

“What?” I asked in amazement.

“You heard me. Nothing. You will work the same three hours every Saturday, but this time you will not be paid 10 cents per hour. You said you wanted to learn to not work for money, so I’m not going to pay you anything. If you don’t learn this now, you’ll grow up to be like the people sitting in my living room, working for money and hoping I don't fire them.”

Rich dad tapped me on the head again. “Use this. Now get out of here and get back to work.”