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Rich Dad Poor Dad

Chapter 2 

Word Count: 12022    |    Released on: 20/11/2017

he Rich Don't

Tell Me How

ning paper. "Why do you

o their beach house for the weekend. He took three of his friends, but Mike and

y dad asked i

d." I replied

ses up the bridge of his nose and went back to

uch as doctors, business owners, and bankers, sent their children to this school, grades 1 to 6. After grade 6, their children were generally sent off to private schools. Because my family lived on one side of the street, I went to this school. Had I l

wn the paper. I could

"If you want to be rich, you

make money

really meant, "That's all I'm going to tell you,"

ership

. Mike was like me in that he was in this school by a twist of fate. Someone had drawn a jog in the line for the school district, and we wou

les, new

that was about it. My dad used to say, "If you want something, work for it."

do to make mone

aid. "But do you wa

all the "cool guys" at Jimmy's beach house having fun. It hurt a little, but that hurt was good, for it inspired us to keep thinking of a way to make money. Finally, that aftern

hbors if they would save their toothpaste tubes for us. With puzzled looks, most adults consented with a

ed as the weeks wore

ur raw materials. In a brown cardboard box that one time held cats

ste tubes had gotten to her. "What are you boys doing?" she asked. "And I don't want to hear

begin production. We informed her that we were waiting on a couple of neighbors to finish u

n eviction notice from our warehouse space by my own mom. It became Mike's job to tell the neighbors to quickly use up t

line operating at full speed. There was fine white powder everywhere. On a long table were small mi

on top of the coals, with the toothpaste tubes being melted down. In those days, toothpaste did not come in plastic tubes. The tubes were made of lead. So once the paint was burned off,

re we mixed it with water. In my haste, I had knocked the bag over, and the entire area look like it

ly poured the molten lead through a small h

l," my

without l

s through, I put the steel p

doing?" he asked wi

old me to do. We're goi

ning and nodding his h

those plaster mo

. "This should

tapped at the seal th

the top half of the plaster mo

said. "You're casting

"We doing as you told us

head. Along with a fire and a box of spent toothpaste tubes, in front of h

on the front step of our house. With a smile, he g

. "You mean this is il

ring

end said. "They might be de

glared

you boys have shown great creativity and origin

leaning up our mess. The business was over on opening day. Sweeping the powder up,

up. The most important thing is that you did something. Most people only talk and dream of

ng. Don'

ce. They were nice words, but w

ou're not rich

don't think about being rich. We just like to teach. I wish

ed and continue

s want to learn how to be rich, do

Mike with a sc

the same banker, and he raves about your father. He's told me sever

Then how come we don't have a nice car and

e's not much different from me. He works for a company, and I work for the government. The company buys the car for him. The sugar company is in financial troubl

ning, we made plans on how and when to talk to Mike's dad. The problem was that Mike's dad worked long hours and often did not come home until l

his dad when he got home that night and ask him if he would teach us how to become r

rang at

put the phone down. Mike's dad ha

ng, I caught the bus t

ssons

ou 10 cents

standards, 10 cen

een at work for more than an hour. His construction supervisor was just leaving in his

d to wait on the back porch," M

was a cheap mat just inside the door. The mat was there to hide the years of wear from co

tle older than my mom. Across from the women sat a man in workman's clothes. He wore khaki slacks and a khaki shirt, neatly pressed but without starch, and polished work books. He was about 10 y

hose peopl

staurants. And you saw the construction supervisor, who is working on a road project about 50 miles fr

on all the t

aid Mike, smiling as he pulled u

ould teach us to mak

ay to that?" I asked w

is face at first, and then he s

my chair back agains

wo rear legs

the sam

what the offe

e'll soon

n door and onto the porch. Mike and I jumped to our

ad asked as he pulled

th

lled our chairs away from th

the same weight, and five years older than Mike's dad. They sort of looked

learn to make money? Is

a little intimidation. He had a lot

you. You don't work for me, I won't teach you. I can teach you faster if you work, and I'm wasting my

sk a question

er learn to make money anyway. Opportunities come and go. Being able to know when to make quick decisions is an important skill. Y

t," I s

t," sai

ough with her, you ride with her to my superette and you can begin working. I'

softball game

voice to a stern tone.

choosing to work and learn

ents

r of her two sons who were grown and gone. Although kind, she believed in hard work and she kept us working. She was a task master. We spent three hours taking c

ores where people bought items such as milk, bread, butter and cigarettes. The problem was, this was Hawaii before air conditioning, and the stores could not close its doors because of the h

or as long as there w

she dropped three little dimes in each of our hands. Now, even at the age of 9 in the mid-1950s, 30 cents was

ause I wanted to learn to make money from Mike's dad, and now I was a slave for 10

erable. School was boring, and now I did not even have my Saturday

me Mike

g at?" I asked with a

. He said to meet with him

tly. "He's been waiting

om your dad. Your mom and dad lecture a lot. My dad is quiet and a man of

I've bee

t maybe. Dad will e

n Line on

ry with him. My real dad, the one I call the poor one, thought that

. At least 25 cents an hour. My poor dad told me that

ned job anyway," said my

, I was going through the sam

said as I entered. He turned and disappeare

I cautiously sat down next to the same two women who where there four w

n had met with him and left thirty minutes earlier. An older

waiting to talk to a cheapskate who exploited children. I could hear him rustling around the offic

rich dad walked out of his office, said nothing, and s

ou're going to quit," rich dad said

" I blurted out nearly in tears. It was really fri

And you don't keep your word. You haven't taught me anything. You are a crook like everyone in town thinks you are. You're greedy. You want all the m

r, hands up to his chin, somewhat stari

ss than a month, you sound

grievance. "I thought you were going to keep your end of the bargain and te

you," rich da

t even talked to me once since I agreed to work for peanuts. Te

you know. My dad works for

ke most of the people who used to work for m

e for a little kid. "You lied to me. I've worked for you, and

e not taught you anything

orked for three weeks, and you have not

talking or a lectu

yes," I

ould say that life is the best teacher of all. Most of the time, life does not talk to you. It just so

pushing me around was life talking to me?" Now I knew I had to

le do two things. Some just let life push them around. Others get angry and push back. But they push bac

what he was

ve on. They welcome life pushing them around. To these few people, it means they need an

ow into a wise, wealthy and happy young man. If you don't, you will spend your life blaming a job, low pay or y

r, streams of communication going between us through our eyes. Finally, I pulled away once I had abso

hat 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 hard-working guy. You spent a life playing it safe, doing the right things. But the truth is, you let life push you i

we looked at each other, only pulli

pushing me ar

iled rich dad. "I would say that

ed, still angry, but now cu

t 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.

e listenin

was close to real life. I could talk until I was blue in the face, but you wouldn't hear a thing. So I

ing for only 10 cents an hour?" I asked. "

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 somethi

understan

r problems," rich dad s

nly pay me

learning?" rich d

heap," I said

I'm the problem,

you

ude and you learn noth

lem and what choi

more or show me more respec

d go looking for another job, better opportunity, and higher pay, actually think

?" I asked. "Just take this mea

ill struggle financially. But that's all they do, waiting for a raise thinking that more money will solve the

ad was presenting. I could sense it was a taste of life. Finally, I l

gently on the head. "This

poor dad-and led him to eventually become one of the richest men in Hawaii while my highly educated, but poor, dad

er, this point of view, w

ss work for money." "The ric

from what I had been taught by my poor dad. At the age of 9, I grew aware that both

a safe, secure job with a big company. And make sure it has excellent benefits." My rich dad wanted me to learn how money w

I would have to tell you that I could not teach you. You see, true learning takes energy, passion, a burning desire. Anger is a big part of that formula, f

y'll take a job wit

I don't pay as much as the sugar plantation or the government.

l you should pay t

Just look at your dad. He makes a lot of money, and he still can't p

an hour," I said, smiling.

on, so he could get a high-paying job. Which he did. But he still has money problems because he

don't?"

in school. That is a great place to learn to do that. But if you want to learn how t

one want to lea

earn to work for money, especially if fear is your pr

stand," I said

most people working at a job. The fear of not paying their bills. The

ession or trade, and then working for money. Most people be

for you is a completely diffe

ich dad answere

ng their Little League baseball game. But far some reason, I was now thankful I had decided to work f

earn?" aske

," I said w

ld, you've gotten a taste of what it feels like to work for money. Just multiply your last

understan

ne to see me? Once to get hired

ble,"

ey, that is what life is like

Martin dropped three dimes in

gh. It seemed like nothing.

their paychecks. Especially after all the tax and other

on't get paid everything

ad. "The government alway

ey do that

u earn. You're taxed when you spend. You're t

t the government

poor and the middle class do. I'll bet you that I e

boy, that made no sense to me. "Why would

guess he wanted me to listen in

my dad complained constantly about paying so much in taxes, bu

and silently in his cha

learn?"

my head

ill continue over my lifetime, simply because the more I Find out, the more I find out I need to know. Most people never study the subject. They go to work, get their paycheck, balance their checkbooks, an

because he doesn't understan

ey. Most people don't. They want to go to school, learn a profession, have fun at their work, and earn lots of money. One day they wake up with big money problems, and then they can'

ded m

get back to work. This tim

asked in

g. You will work the

ts per hour. You said you wanted to learn to not wo

elieve what

s already working, dusting and stacking canned goo

shouted. "You've go

g I don't fire them. Or like your dad, earning lots of money only to be in debt up to his eyeballs, hoping more money will solve the problem. If that's what you want, I'll

do I do?

If you use it well, you will soon thank me for giving

had been handed. Here I came to ask for a raise, a

ain and said, "Use this. Now get

e Rich Don't

ld not have understood, and I did not want to try to

ing. The work didn't bother me, and the routine got easier. It was the missed bas

ine was turned off. He entered the store and greeted Mrs. Martin with a hug. After finding out how things were going

for a wa

grassy field, where a few adults were playing softball. Sitting dow

it goin

Mike

d in ag

ing yet?" ri

her, shrugged our shoulders

of Life's B

'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

rking people. Are you makin

e over rich

nt something out to the two of you. I want to expand your point of view so you can see something. Something most peo

e. He sounded cruel, yet we could sense he w

at 25 cents an hour sound good? Doesn't

eally did. Twenty five cents a

llar an hour," rich da

ginning to race. My

not believe what I was hea

$2 an

. 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 adoratio

nd blown a fuse. But deep down,

s 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

$5 an

ur. 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 silen

fear and greed. First, the fear of being without money motivates us to work hard, and then once we get that pay

ttern?"

ves are then run forever by two emotions, fear and greed. Offer them more money, and the

nother way?

slowly. "But only a

s that way?

out as you work and study with me. Th

re kind of tired of working h

ep is telling the t

t been lyi

lying. I said to tell

a

about wha

said. "You don't have to say it

the people who work for you, Mrs. M

ead of think. They react emotionally instead of using their heads," rich dad said, tapping us on our heads. "'Then, they get a

ns do their thin

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 their emotions an

nd fully what he was talking about. I just knew that I often wondered why grownups hurried off to work. It

h dad said, "I want you boys to avoid that trap. That is really what I want to

?" I asked,

ting. 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 m

people?"

ow 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

r man happie

ad. "The avoidance of money is just as

ge rubbish can and rummaging around in it. The three of us watched him w

. Seeing the money, the derelict came over immediately, took the bill, t

rested 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

less times my own dad said, "I'm not interested in money." He said those words

ot work for money until all tra

n. Make us real. The word `emotion' stands for energy in motion. Be truthful about

" said

, not a reactor, to your emotions. Most people do not know that it's their emotions that are doing

e me an exam

o find a job,' it's most likely an emotion doing the thi

money if they have b

l I'm saying is that it's fear that

nderstand,

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

l, get good grades, so you can find a safe,

st people recommend that, and it's a good idea for most peopl

says that becau

nts 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 sam

you recommen

t be afraid of it. And they don't teach that in schoo

ployees could not see, or my dad for that matter. He used examples that sounded cruel at the time, but I've nev

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 yo

avoid the tr

government or the rich. It's selfinflicted fear and ignorance that keeps people trapped. So y

on and a great career. But school never told him how to handle money or his fears.

f not having money. How does the desire

ed you with a pay raise? Did y

ded ou

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 thought

new baseball glove, candy and toys, that

big house to impress your friends," said rich dad with a smile. "Fear pushes you ou

the answer,

oney often have more fear the richer they get. Money is the carrot, the illusion. If t

a human's life is a struggle be

and knowledge of one's self, ignorance sets in. That struggle is

very culture needs teachers, doctors, mechanics, artists, cooks, business people, police officers, firefighters, soldiers. Schools tra

he said that day. But as with most great teachers, whose words continue to tea

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 l

ur table. Rich dad picked

ce have to do with gr

es. A doctor, wanting more money to better provide for his family, raises his fees. By raising his fees, it makes health care

re 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

supposed to g

in theory. Prices go up because of greed and fear caused by ignorance. If schools taught people about money, there would be

asked. "Aren't you encouraging me to go t

ness. 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 ra

an answer?"

emotions, first by agreeing to work for free, I knew there was hope. When you again resisted your emotions when I temp

step so impor

ace where almost everyone else avoids. I'll take you to that place where most people are afraid to go. If y

h you. What if we agree to learn f

it got," said rich dad. "F

briar patc

to our fear and confronting our greed, our weaknesses, our neediness is th

houghts?" Mike

our 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 ter

we do that?"

a choice of thoughts to consider, rather than knee-jerk reacting

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 parent

etween emotions thinking and t

ks.' 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.'

out of emotions or out of clear thought. It was a lesson that served me well for li

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 i

usion 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 confidenc

s actually a silver certificate. What concerned him was the rumor that we would som

the ignorant will have their lives ruined simply because they will continue to believe that

e was saying that day, but over the

What Ot

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

bye to Mrs. Martin. We went back to the park, to the same pic

g and talking. For two more weeks, we kep

ing 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 goodb

est 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.

sked him if we could have the comic books. To which he replied, "Yo

he 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. T

in how many kids showed up each day, who they were, and any comments they might have. Mike and I averaged $9.50 per week over a threemo

t stores. We kept our agreement to the distributor by not selling any comic books. We burned them once they got too tatte

ound out how hard it

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

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