Rich Dad Poor Dad: What the Rich Teach Their Kids About MoneyThat the Poor and Middle Class Do Not!

IF YOU DO NOT HAVE A STRONG REASON, THERE IS NO
SENSE READING FURTHER. IT WILL SOUND LIKE TOO MUCH
WORK.
2. Make daily choices: the power of choice
Choice is the main reason people want to live in a free country. We want
the power to choose.
Financially, with every dollar we get in our hands, we hold the power to
choose our future: to be rich, poor, or middle class. Our spending habits
reflect who we are. Poor people simply have poor spending habits. The
benefit I had as a boy was that I loved playing Monopoly constantly.
Nobody told me Monopoly was only for kids, so I just kept playing the
game as an adult. I also had a rich dad who pointed out to me the difference
between an asset and a liability. So a long time ago, as a little boy, I chose
to be rich, and I knew that all I had to do was learn to acquire assets, real
assets. My best friend, Mike, had an asset column handed to him, but he
still had to choose to learn to keep it. Many rich families lose their assets in
the next generation simply because there was no one trained to be a good
steward over their assets.
Most people choose not to be rich. For 90 percent of the population,
being rich is too much of a hassle. So they invent sayings that go: “I’m not
interested in money.” “I’ll never be rich.” “I don’t have to worry. I’m still

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young.” “When I make some money, then I’ll think about my future.” “My
husband/wife handles the finances.” The problem with those statements is
that they rob the person who chooses to think such thoughts of two things:
One is time, which is your most precious asset. The second is learning.
Having no money should not be an excuse to not learn. But that is a choice
we all make daily: the choice of what we do with our time, our money, and
what we put in our heads. That is the power of choice. All of us have
choice. I just choose to be rich, and I make that choice every day.
Invest first in education. In reality, the only real asset you have is your
mind, the most powerful tool we have dominion over. Each of us has the
choice of what we put in our brain once we’re old enough. You can watch
TV, read golf magazines, or go to ceramics class or a class on financial
planning. You choose. Most people simply buy investments rather than first
investing in learning about investing.
A friend of mine recently had her apartment burglarized. The thieves
took her electronics and left all the books. And we all have that same
choice. 90 percent of the population buys TV sets, and only about 10
percent buy business books.
So what do I do? I go to seminars. I like it when they are at least two
days long because I like to immerse myself in a subject. In 1973, I was
watching this guy on TV who was advertising a three-day seminar on how
to buy real estate for nothing down. I spent $385 and that course has made
me at least $2 million, if not more. But more importantly, it bought me life.
I don’t have to work for the rest of my life because of that one course. I go
to at least two such courses every year.
I love CDs and audio books. The reason: I can easily review what I just
heard. I was listening to an investor say something I completely disagreed
with. Instead of becoming arrogant and critical, I simply listened to that
five-minute stretch at least 20 times, maybe more. But suddenly, by keeping
my mind open, I understood why he said what he said. It was like magic. I
felt like I had a window into the mind of one of the greatest investors of our
time. I gained tremendous insight into the vast resources of his education
and experience.
The net result: I still have the old way I used to think, and I now have a
new way of looking at the same problem or situation. I have two ways to
analyze a problem or trend, and that is priceless. Today, I often say, “How

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would Donald Trump do this, or Warren Buffett or George Soros?” The
only way I can access their vast mental power is to be humble enough to
read or listen to what they have to say. Arrogant or critical people are often
people with low self-esteem who are afraid of taking risks. That’s because,
if you learn something new, you are then required to make mistakes in order
to fully understand what you have learned.
If you have read this far, arrogance is not one of your problems.
Arrogant people rarely read or listen to experts. Why should they? They are
the center of the universe.
There are so many “intelligent” people who argue or defend when a new
idea clashes with the way they think. In this case, their so-called
intelligence combined with arrogance equals ignorance. Each of us knows
people who are highly educated, or believe they are smart, but their balance
sheet paints a different picture. A truly intelligent person welcomes new
ideas, for new ideas can add to the synergy of other accumulated ideas.
Listening is more important than talking. If that were not true, God would
not have given us two ears and only one mouth. Too many people think
with their mouth instead of listening in order to absorb new ideas and
possibilities. They argue instead of asking questions.
I take a long view on my wealth. I do not subscribe to the get-rich-quick
mentality most lottery players or casino gamblers have. I may go in and out
of stocks, but I am long on education. If you want to fly an airplane, I
advise taking lessons first. I am always shocked at people who buy stocks
or real estate, but never invest in their greatest asset, their mind. Just
because you bought a house or two does not make you an expert at real
estate.