THE AUTHORS of the bestseller Rich Dad, Poor Dad maintain that the rich teach their kids differently about money than the poor or middle class.
The authors give the example of a rich father’s lesson for two young boys. The lesson involved rich dad hiring Robert and Michael to work for three hours each Saturday for 10 cents per hour, a substandard wage for dusting the merchandise in an area that is perpetually dusty. However, they would have some cash in hand to buy comics. They agree.
After one month, they become disgruntled and frustrated. Family and friends urged them to revolt – at least, they deserve a raise.
When they meet Rich Dad, Robert ran off at the mouth at how Rich Dad wanted all the money for himself, was not teaching him anything and was not taking care of his employees.
Robert highlighted his sacrifice in giving up his Saturday softball games; he demanded to be treated better and to be respected. Rich Dad was exploiting his workers. Rich Dad’s instructive response was that Robert had progressed very far as he sounded after one month like most of his employees.
Rich Dad also pointed out that life does not teach one by talking necessarily. For sure, life tends to push people around, each push being a wake-up call to learn a particular lesson.
If nothing is learnt from the push, one may tend to push back . . . at the wrong thing or person – say, the employer, the job, or members of the household.
On the other hand, if you do learn, then you become wiser and wealthier instead of just hoping for some big break in life to solve all your problems.
In the job situation, people who do not learn the lesson tend to end up living a safe and boring life, working hard . . . afraid to try a different approach to solving their frustrations.
Rich Dad also commended the boys for asking about how to make money. No other employee had ever done that. They asked for a job and a pay cheque. They may even get a second job . . . working harder and longer.
Rich Dad stressed that the job was not as important as the worker’s mind. The workers needed to change themselves instead of focusing on changing their circumstances. The most important thing that each worker must do is to think and look for real solutions.
Rich Dad then took a startling tact. He offered the boys an increase in pay of 25 cent per hour. They were so surprised that they hesitated. And through a continuing offer and stunned hesitation process, Rich Dad moved his offer from 25 cents to $5, a rate exceeded even what adults earned. Somehow, the boys got the point. They must not be willing to be slave at any cost.
Rich Dad’s most shocking move was then to ask the boys to work for nothing. The lesson finally sank home. These boys will not be a slave to the job. In fact, they begun to enjoy their work. Then, they discovered a money-making idea – establishing a library for used comics. They set up an operation with employees which netted them over $9 weekly.
The crux of the lesson is that through seeing what others never did, the boys were able to establish an operation that could earn them money even when they were not present. They were making more money without “working” for it. The miracle is in the full use of their creative skills to address a long-term problem.
Louise Fairsave is a personal financial management advisor, providing practical advice on money and estate matters. Her advice is general in nature; readers should seek advice about their specific circumstances.
