Rat Race – Rich Dad, Poor Dad

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 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.

Six Lessons Rich Dad Poor Dad.

Six Lessons Rich Dad Poor Dad.

 

“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’.”

Kiyosaki, Robert. Rich Dad, Poor Dad (Kindle Locations 57-75).

 

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2 Responses

  1. When Dad was younger, he worked for his father on the farm. His father was a farmer and sharecropped a farm for the man who owned the property. In 1950, our family moved from the farm. Dad had gained employment at the local limestone quarry. When the quarry closed in August of 1957, he had to seek other employment. He worked for Owens Yacht Company in Dundalk, Maryland and for Todd Steel in Point of Rocks, Maryland. While working at Todd Steel, he was involved in an accident. His job was to roll angle iron onto a conveyor so that the welders farther up the production line would have it to complete their job. On this particular day Dad got the third index finger of his left hand mashed between two pieces of steel. The doctor who operated on the finger could not save it, and Dad ended up having the tip of the finger amputated. He didn’t lose enough of the finger where it would stop him picking up anything, but it did impact his ability to play the mandolin.

  2. […] Rat Race – Rich Dad, Poor Dad (funnyardstick.wordpress.com) […]

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