1. The Rich Don't Work For Money

This is not intended to be a comprehensive book review. It is commentary on what I've found useful for my personal situation and mind set. Any text in green is a direct quoted from the book. All other text is my observations and reactions.

"It hurt a little, but that hurt was good, for it inspired us to keep thinking of a way to make money."   (pg. 24)

Hurt, or anger, is often the catalyst for change. If things are going well, or you are comfortable, there is often little incentive for you to do anything different.

"You're only poor if you give up. The most important thing is that you did something."   (pg. 26)

It is a common statistic that 9 out of every 10 start-up businesses fail. But, that means if you try 10 times, you will succeed. Keep trying until you make it - it will be worthwhile in the end.

"Mike's dad worked long hours and often did not come home until late."   (pg. 27)

Long hours are often a given at various kinds of jobs. But if your job only requires 40 hours a week - how do you spend those other hours that you aren't sleeping? Could you be doing something that would create more money for yourself down the line? An investment, creating something that would bring in royalties, building your own business?

"Michael and I met with his dad that morning at 8 o'clock. He was already busy and had been at work for more than an hour."   (pg. 28)

When I first read this book, I considered a lot of the above simply filler as Kiyosaki was relating the story of how he first started learning from his rich dad. As I read the book again, marking my way through it, these little details meant a lot more. Rich dad was already working at 7 am on a Saturday. This is part of how he made his wealth - he spent his time minding his own business(es). Currently, the only way I'm up at 7 am on a Saturday is if I have to catch a plane, or have been up the whole night through.   ^_^

"If you can't make up your mind decisively, then you'll never learn to make money anyway. Opportunities come and go."   (pg. 29)

Part of being able to take advantage of an opportunity is to realize that there is one there in the first place. Since I have started focusing on money, I am much more aware of financial opportunities around me. It's like finding a car you really like, and then suddenly seeing them everywhere you go.

"You have an opportunity you asked for."   (pg. 29)

Most people know the saying "Be careful what you ask for, you just might get it." Opportunity means you have a chance to do something - it is totally up to you whether or not you take that chance, and what you do with it once you get it. It may not be easy, or fast, or convenient, but it is usually very worthwhile.

"I usually spent my money comic books and went home."   (pg. 30)

For a 9 year old, the above is common and not really thought of as wrong. Fast-forward 30 years, and you have someone with no savings, quite a bit of consumer (credit card) debt, and very little hope of having the chance to retire before 65, since he needs his job to support his buying habits. If that 9 year old had saved $1/month, he'd have $xxx by the time he was 39. Behold the power of compound interest!

"'Does teaching mean talking or a lecture,' rich dad asked."   (pg. 32)

Remember a little movie called "The Karate Kid"? Painting fences and washing cars created muscle memory and strengthened his body so that he really was learning karate, he just didn't know it (or appreciate it at the time).   ^_^

Not to totally discount 'book learning' - there are many things I'd rather learn by reading than doing, but to truly learn something, I have to apply it/work it/use it in my world, or it will slowly fade away. I have very little recollection of the equations I used to pass my physics exams, but I remember my avian biology because I talk to people about birds of prey when I volunteer with On The Wind Again.

"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.'"   (pg. 33)

I've found this to be true in my own life. Sometimes it's a little tap on the shoulder. Sometimes something a bit more attention-getting. Regardless, I've made it a point to try and listen to myself and to life's little pushes because they usually turn out for the best if I follow through on them, even if it doesn't look like it at the time.

"You'd best change your point of view. Stop blaming me, thinking I'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 something and grow wiser. Most people want everyone else in the world to change but themselves. Let me tell you, it's easier to change yourself than everyone else."   (pg. 34)

Perfect description of being "in the box", a term from the book Leadership & Self-Deception. Recommended reading for everyone.

"The poor and the middle class work for money. The rich have money work for them."   (pg. 35)

A job is working for money - they tell you where to work, when to show up, what to do, when/if to take vacation, and essentially determine your lifestyle. Passive income is money working for you - compound interest being one of the basics.

"You see, true learning takes energy, passion, a burning desire. Anger is a big part of that formula, for passion is anger and love combined."   (pg. 36)

What does it take to motivate you? What is your passion? Currently, mine is to make enough passive income so that I'll never need a job again. This passion has kept me going for the past 3 years, and will until my goal is reached and my dream made real.

"Learning how to have money work for you is a lifetime study."   (pg. 38)

I'm just beginning to learn about money, and I look forward to many decades of study. What have you learned lately about money?

"After finding out how things were going in the store, he reached into the ice-cream freezer, pulled out two bars, paid for them, and signaled to Mike and me."   (pg. 39-40)

A little descriptive paragraph that speaks volumes. Rich Dad didn't have to pay for those ice-cream bars - he owned the place. But he doesn't take short-cuts, and a business is a business regardless if you are the employee or the CEO (although it seems like some CEOs have forgotten this part recently).

"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 part of their soul that was strong and filled with a resolve that could never be bought. It was only a question of which one was stronger."   (pg. 41)

You make a living from 8 am - 5 pm. You make a life from 5 pm to 8 pm. You make a fortune from 8 pm to midnight. It's incredibly easy to watch TV after a hard day's work, and you probably deserve the break ... but for every evening you watch re-runs is another day you'll have to work for someone else. And I am in constant battle with the needy part of myself, but my bigger need (financial freedom) usually/most of the time/as much as I can wins out over the petty needs (eating out at a restaurant/buying doodads, etc.).

"Instead of confronting their fear, they react isntead of think."   (pg. 42)

It's scary not to have money, since so much of our basic life necessities (food, shelter, warmth) tend to be acquired through the exchange of currency. Scarcity is also another fear ("If I don't buy it now, I'll never be able to"). However, given enough money, I believe there is no such thing as scarcity - if you can't buy it from someone, you can have someone make it.

"Some call it greed, but I prefer desire. It is perfectly normal to desire something better, prettier, more fun or exciting. So people also work for money because of desire."   (pg. 43)

It's funny, if you ask people "Would you still work here if you didn't need the money?" a lot of times you'll get a "yes". Personally, I think they haven't really considered the question. People don't have enough time to do the things they really want to do, and here you are asking them if they want their 40-50-60 hours a week back of their life ... and they say 'no'? We work to get a paycheck which we turn around and use for the things we really need and want. What would you do with an extra 40 hours a week? What would you have if money was not an issue? Interesting stuff to think about ... the stuff dreams are made of.

"I've met so many people who say, 'Oh, I'm not interested in money.' Yet they will work at a job for eight hours a day. That's a denial of truth. If they weren't interested in money, then why are they working?."   (pg. 44)

see above comments ...

"Emotions are what make us human. Make us real. The work 'emotion' stands for energy in motion. Be truthful about your emotions, and use your mind and emotions in your favor, not against yourself."   (pg. 44)

It's amazing how much backtalk your own mind will throw against you. A book I found very helpful is Taming Your Gremlin. I believe it's important to listen to yourself, to what your mind and your emotions tell you about what you're doing. And more often than not, my mind and emotions tend to be in direct conflict. My mind tells be I should be doing "this" but my emotions make it nearly impossible to do so. Each instance gets evaluated and resolved as they happen. Sometimes I work through it, and somethings get pushed off ... and that's okay too.

"The main cause of poverty or financial struggle is fear and ignorance, not the economy or the government or the rich. It's self-inflicted fear and ignorance that keeps people trapped."   (pg. 45)

A little personal responsibility, anyone? Not that any of this is easy - far from it, I can tell you from personal experience. But I do believe anyone can do it that wants to, because you don't have to do it alone ... something that took me a while to figure out, and something that I still sometimes struggle with. I take pride (which is supposed to go before the fall, but sometimes just pushes you over the cliff from behind) in being independent and find it difficult to ask for help ... although I am getting better about it.

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