who controls the past controls the future, who controls the present controls the past.
Rich Dad, Poor Dad
By Robert T. Kiyosaki
V1.0(9-9-2002)
If you find and correct errors in the text, please update the version number by 0.1 and
redistribute. Ripped by Tangtang
INTRODUCTION
There is a Need
Does school prepare children for the real world? "Study hard and get good
grades and you will find a high-paying job with great benefits," my parents used
to say. Their goal in life was to provide a college education for my older
sister and me, so that we would have the greatest chance for success in life.
When T finally earned my diploma in 1976-graduating with honors, and near the
top of my class, in accounting from Florida State University-my parents had
realized their goal. It was the crowning achievement of their lives. In
accordance with the "Master Plan," I was hired by a "Big 8" accounting firm, and
I looked forward to a long career and retirement at an early age.
My husband, Michael, followed a similar path. We both came from hard-
working families, of modest means but with strong work ethics. Michael also
graduated with honors, but he did it twice: first as an engineer and then from
law school. He was quickly recruited by a prestigious Washington, D.C., law firm
that specialized in patent law, and his future seemed bright, career path well-
defined and early retirement guaranteed.
Although we have been successful in our careers, they have not turned out
quite as we expected. We both have changed positions several times-for all the
right reasons-but there are no pension plans vesting on our behalf. Our
retirement funds are growing only through our individual contributions.
Michael and I have a wonderful marriage with three great children. As I
write this, two are in college and one is just beginning high school. We have
, who controls the past controls the future, who controls the present controls the past.
spent a fortune making sure our children have received the best education
available.
One day in 1996, one of my children came home disillusioned with school.
He was bored and tired of studying. "Why should I put time into studying
subjects I will never use in real life?" he protested.
Without thinking, I responded, "Because if you don't get good grades, you
won't get into college."
"Regardless of whether I go to college," he replied, "I'm going to be
rich."
"If you don't graduate from college, you won't get a good job," I
responded with a tinge of panic and motherly concern. "And if you don't have a
good job, how do you plan to get rich?"
My son smirked and slowly shook his head with mild boredom. We have had
this talk many times before. He lowered his head and rolled his eyes. My words
of motherly wisdom were falling on deaf ears once again.
Though smart and strong-willed, he has always been a polite and respectful
young man.
"Mom," he began. It was my turn to be lectured. "Get with the times! Look
around; the richest people didn't get rich because of their educations. Look at
Michael Jordan and Madonna. Even Bill Gates, who dropped out of Harvard, founded
Microsoft; he is now the richest man in America, and he's still in his 30s.
There is a baseball pitcher who makes more than $4 million a year even though he
has been labeled `mentally challenged.' "
There was a long silence between us. It was dawning on me that I was
giving my son the same advice my parents had given me. The world around us has
changed, but the advice hasn't.
Getting a good education and making good grades no longer ensures success,
and nobody seems to have noticed, except our children.
"Mom," he continued, "I don't want to work as hard as you and dad do. You
make a lot of money, and we live in a huge house with lots of toys. If I follow
your advice, I'll wind up like you, working harder and harder only to pay more
taxes and wind up in debt. There is no job security anymore; I know all about
downsizing and rightsizing. I also know that college graduates today earn less
than you did when you graduated. Look at doctors. They don't make nearly as much
money as they used to. I know I can't rely on Social Security or company
pensions for retirement. I need new answers."
He was right. He needed new answers, and so did I. My parents' advice may
have worked for people born before 1945, but it may be disastrous for those of
, who controls the past controls the future, who controls the present controls the past.
us born into a rapidly changing world. No longer can I simply say to my children,
"Go to school, get good grades, and look for a safe, secure job."
I knew I had to look for new ways to guide my children's education.
As a mother as well as an accountant, I have been concerned by the lack of
financial education our children receive in school. Many of today's youth have
credit cards before they leave high school, yet they have never had a course in
money or how to invest it, let alone understand how compound interest works on
credit cards. Simply put, without financial literacy and the knowledge of how
money works, they are not prepared to face the world that awaits them, a world
in which spending is emphasized over savings.
When my oldest son became hopelessly in debt with his credit cards as a
freshman in college, I not only helped him destroy the credit cards, but I also
went in search of a program that would help me educate my children on financial
matters.
One day last year, my husband called me from his office. "I have someone I
think you should meet," he said. "His name is Robert Kiyosaki. He's a
businessman and investor, and he is here applying for a patent on an educational
product. I think it's what you have been looking for."
Just What I Was Looking For
My husband, Mike, was so impressed with CASHFLOW, the new educational
product that Robert Kiyosaki was developing, that he arranged for both of us to
participate in a test of the prototype. Because it was an educational game, I
also asked my 19-year-old daughter, who was a freshman at a local university, if
she would like to take part, and she agreed.
About fifteen people, broken into three groups, participated in the test.
Mike was right. It was the educational product I had been looking for. But
it had a twist: It looked like a colorful Monopoly board with a giant well-
dressed rat in the middle. Unlike Monopoly, however, there were two tracks: one
inside and one outside. The object of the game was to get out of the inside
track-what Robert called the "Rat Race" and reach the outer track, or the "Fast
Track." As Robert put it, the Fast Track simulates how rich people play in real
life.
Robert then defined the "Rat Race" for us.
"If you look at the life of the average-educated, hard-working person,
there is a similar path. The child is born and goes to school. The proud parents
are excited because the child excels, gets fair to good grades, and is accepted
, who controls the past controls the future, who controls the present controls the past.
into a college. The child graduates, maybe goes on to graduate school and then
does exactly as programmed: looks for a safe, secure job or career. The child
finds that job, maybe as a doctor or a lawyer, or joins the Army or works for
the government. Generally, the child begins to make money, credit cards start to
arrive in mass, and the shopping begins, if it already hasn't.
"Having money to burn, the child goes to places where other young people
just like them hang out, and they meet people, they date, and sometimes they get
married. Life is wonderful now, because today, both men and women work. Two
incomes are bliss. They feel successful, their future is bright, and they decide
to buy a house, a car, a television, take vacations and have children. The happy
bundle arrives. The demand for cash is enormous. The happy couple decides that
their careers are vitally important and begin to work harder, seeking promotions
and raises. The raises come, and so does another child and the need for a bigger
house. They work harder, become better employees, even more dedicated. They go
back to school to get more specialized skills so they can earn more money. Maybe
they take a second job. Their incomes go up, but so does the tax bracket they're
in and the real estate taxes on their new large home, and their Social Security
taxes, and all the other taxes. They get their large paycheck and wonder where
all the money went. They buy some mutual funds and buy groceries with their
credit card. The children reach 5 or 6 years of age, and the need to save for
college increases as well as the need to save for their retirement. .
"That happy couple, born 35 years ago, is now trapped in the Rat Race for
the rest of their working days. They work for the owners of their company, for
the government paying taxes, and for the bank paying off a mortgage and credit
cards.
"Then, they advise their own children to `study hard, get good grades, and
find a safe job or career.' They learn nothing about money, except from those
who profit from their naïveté, and work hard all their lives. The process
repeats into another hard-working generation. This is the `Rat Race'."
The only way to get out of the "Rat Race" is to prove your proficiency at
both accounting and investing, arguably two of the most difficult subjects to
master. As a trained CPA who once worked for a Big 8 accounting firm, I was
surprised that Robert had made the learning of these two subjects both fun and
exciting. The process was so well disguised that while we were diligently
working to get out of the "Rat Race," we quickly forgot we were learning.
Soon a product test turned into a fun afternoon with my daughter, talking
about things we had never discussed before. As an accountant, playing a game
that required an Income Statement and Balance Sheet was easy. So I had the time
Rich Dad, Poor Dad
By Robert T. Kiyosaki
V1.0(9-9-2002)
If you find and correct errors in the text, please update the version number by 0.1 and
redistribute. Ripped by Tangtang
INTRODUCTION
There is a Need
Does school prepare children for the real world? "Study hard and get good
grades and you will find a high-paying job with great benefits," my parents used
to say. Their goal in life was to provide a college education for my older
sister and me, so that we would have the greatest chance for success in life.
When T finally earned my diploma in 1976-graduating with honors, and near the
top of my class, in accounting from Florida State University-my parents had
realized their goal. It was the crowning achievement of their lives. In
accordance with the "Master Plan," I was hired by a "Big 8" accounting firm, and
I looked forward to a long career and retirement at an early age.
My husband, Michael, followed a similar path. We both came from hard-
working families, of modest means but with strong work ethics. Michael also
graduated with honors, but he did it twice: first as an engineer and then from
law school. He was quickly recruited by a prestigious Washington, D.C., law firm
that specialized in patent law, and his future seemed bright, career path well-
defined and early retirement guaranteed.
Although we have been successful in our careers, they have not turned out
quite as we expected. We both have changed positions several times-for all the
right reasons-but there are no pension plans vesting on our behalf. Our
retirement funds are growing only through our individual contributions.
Michael and I have a wonderful marriage with three great children. As I
write this, two are in college and one is just beginning high school. We have
, who controls the past controls the future, who controls the present controls the past.
spent a fortune making sure our children have received the best education
available.
One day in 1996, one of my children came home disillusioned with school.
He was bored and tired of studying. "Why should I put time into studying
subjects I will never use in real life?" he protested.
Without thinking, I responded, "Because if you don't get good grades, you
won't get into college."
"Regardless of whether I go to college," he replied, "I'm going to be
rich."
"If you don't graduate from college, you won't get a good job," I
responded with a tinge of panic and motherly concern. "And if you don't have a
good job, how do you plan to get rich?"
My son smirked and slowly shook his head with mild boredom. We have had
this talk many times before. He lowered his head and rolled his eyes. My words
of motherly wisdom were falling on deaf ears once again.
Though smart and strong-willed, he has always been a polite and respectful
young man.
"Mom," he began. It was my turn to be lectured. "Get with the times! Look
around; the richest people didn't get rich because of their educations. Look at
Michael Jordan and Madonna. Even Bill Gates, who dropped out of Harvard, founded
Microsoft; he is now the richest man in America, and he's still in his 30s.
There is a baseball pitcher who makes more than $4 million a year even though he
has been labeled `mentally challenged.' "
There was a long silence between us. It was dawning on me that I was
giving my son the same advice my parents had given me. The world around us has
changed, but the advice hasn't.
Getting a good education and making good grades no longer ensures success,
and nobody seems to have noticed, except our children.
"Mom," he continued, "I don't want to work as hard as you and dad do. You
make a lot of money, and we live in a huge house with lots of toys. If I follow
your advice, I'll wind up like you, working harder and harder only to pay more
taxes and wind up in debt. There is no job security anymore; I know all about
downsizing and rightsizing. I also know that college graduates today earn less
than you did when you graduated. Look at doctors. They don't make nearly as much
money as they used to. I know I can't rely on Social Security or company
pensions for retirement. I need new answers."
He was right. He needed new answers, and so did I. My parents' advice may
have worked for people born before 1945, but it may be disastrous for those of
, who controls the past controls the future, who controls the present controls the past.
us born into a rapidly changing world. No longer can I simply say to my children,
"Go to school, get good grades, and look for a safe, secure job."
I knew I had to look for new ways to guide my children's education.
As a mother as well as an accountant, I have been concerned by the lack of
financial education our children receive in school. Many of today's youth have
credit cards before they leave high school, yet they have never had a course in
money or how to invest it, let alone understand how compound interest works on
credit cards. Simply put, without financial literacy and the knowledge of how
money works, they are not prepared to face the world that awaits them, a world
in which spending is emphasized over savings.
When my oldest son became hopelessly in debt with his credit cards as a
freshman in college, I not only helped him destroy the credit cards, but I also
went in search of a program that would help me educate my children on financial
matters.
One day last year, my husband called me from his office. "I have someone I
think you should meet," he said. "His name is Robert Kiyosaki. He's a
businessman and investor, and he is here applying for a patent on an educational
product. I think it's what you have been looking for."
Just What I Was Looking For
My husband, Mike, was so impressed with CASHFLOW, the new educational
product that Robert Kiyosaki was developing, that he arranged for both of us to
participate in a test of the prototype. Because it was an educational game, I
also asked my 19-year-old daughter, who was a freshman at a local university, if
she would like to take part, and she agreed.
About fifteen people, broken into three groups, participated in the test.
Mike was right. It was the educational product I had been looking for. But
it had a twist: It looked like a colorful Monopoly board with a giant well-
dressed rat in the middle. Unlike Monopoly, however, there were two tracks: one
inside and one outside. The object of the game was to get out of the inside
track-what Robert called the "Rat Race" and reach the outer track, or the "Fast
Track." As Robert put it, the Fast Track simulates how rich people play in real
life.
Robert then defined the "Rat Race" for us.
"If you look at the life of the average-educated, hard-working person,
there is a similar path. The child is born and goes to school. The proud parents
are excited because the child excels, gets fair to good grades, and is accepted
, who controls the past controls the future, who controls the present controls the past.
into a college. The child graduates, maybe goes on to graduate school and then
does exactly as programmed: looks for a safe, secure job or career. The child
finds that job, maybe as a doctor or a lawyer, or joins the Army or works for
the government. Generally, the child begins to make money, credit cards start to
arrive in mass, and the shopping begins, if it already hasn't.
"Having money to burn, the child goes to places where other young people
just like them hang out, and they meet people, they date, and sometimes they get
married. Life is wonderful now, because today, both men and women work. Two
incomes are bliss. They feel successful, their future is bright, and they decide
to buy a house, a car, a television, take vacations and have children. The happy
bundle arrives. The demand for cash is enormous. The happy couple decides that
their careers are vitally important and begin to work harder, seeking promotions
and raises. The raises come, and so does another child and the need for a bigger
house. They work harder, become better employees, even more dedicated. They go
back to school to get more specialized skills so they can earn more money. Maybe
they take a second job. Their incomes go up, but so does the tax bracket they're
in and the real estate taxes on their new large home, and their Social Security
taxes, and all the other taxes. They get their large paycheck and wonder where
all the money went. They buy some mutual funds and buy groceries with their
credit card. The children reach 5 or 6 years of age, and the need to save for
college increases as well as the need to save for their retirement. .
"That happy couple, born 35 years ago, is now trapped in the Rat Race for
the rest of their working days. They work for the owners of their company, for
the government paying taxes, and for the bank paying off a mortgage and credit
cards.
"Then, they advise their own children to `study hard, get good grades, and
find a safe job or career.' They learn nothing about money, except from those
who profit from their naïveté, and work hard all their lives. The process
repeats into another hard-working generation. This is the `Rat Race'."
The only way to get out of the "Rat Race" is to prove your proficiency at
both accounting and investing, arguably two of the most difficult subjects to
master. As a trained CPA who once worked for a Big 8 accounting firm, I was
surprised that Robert had made the learning of these two subjects both fun and
exciting. The process was so well disguised that while we were diligently
working to get out of the "Rat Race," we quickly forgot we were learning.
Soon a product test turned into a fun afternoon with my daughter, talking
about things we had never discussed before. As an accountant, playing a game
that required an Income Statement and Balance Sheet was easy. So I had the time
