Rich Dad Scam #2: Getting a Job

Dear Reader, 

When I was young, my poor dad always told me that I needed to go to school so that I could get a good job. To my poor dad, getting a good job was the most important thing in life. My poor dad worked very hard, but he was always worried about money. Yet, he never got ahead. His job was one of the things that actually kept him from succeeding. He toiled away working for others, often getting raises only to keep up with the cost of living and paying a high percentage to the government in taxes.

On the other hand, my rich dad never had a 9-5 job, and he was very successful and very wealthy. My rich dad understood that the sentiment, “Get a job,” was a scam. 

Rather than get a job, he created jobs. 

Rather than work for someone else, he worked for himself. 

Rather than pay high taxes, he used the tax code to become wealthy.

The idea that a job is an important part of your personal security is a big part of this scam. The reality is that having a job does not make you secure. 

Look at any time in history during an economic downturn to see evidence of this. In an economy where people are losing their jobs, the more secure position is to own the company that is firing people.

How the Scam Works

“Get a job” is a scam because you have no control over your income and it makes you poorer due to having to pay the most in taxes. Generally, people who are employees greatly value security. For them, it is often true that money is not as important as security. They may take great risks in other areas of their lives, but not when it comes to money.

The scam gets even worse when you look at it long-term. If you do well at your job, if you claw your way up the ladder, what is your reward? A small increase in pay and a bigger increase in taxes. 

The entrepreneur doesn’t want to climb the corporate ladder. He or she wants to own the corporate ladder. An entrepreneur is not driven by a paycheck, but by the results. Also, as Howard Stevenson states, many entrepreneurs start a business because they have very strong values that are more important than simply job security and a steady paycheck. For many entrepreneurs, their values are more important than money. They are passionate about their work, their mission, and love what they do. Many entrepreneurs will do their work even though there is no money. 

Rich dad said, “Many employees are passionate about their work only as long as there is a paycheck.”

The Transition from Employee to Entrepreneur

I know I was not born a natural entrepreneur. I had to be trained. My rich dad guided me through a process of starting as an employee to eventually becoming an entrepreneur. For me, it was not an easy process. There was a lot I had to unlearn before I could begin to understand the lessons he was trying to teach me.

It was difficult hearing what my rich dad had to say because what he said was exactly the opposite of the lessons my poor dad was trying to teach me. Every time my rich dad talked about entrepreneurship, he was talking about freedom. Every time my poor dad talked to me about going to school to get a job, he was talking about security. The clash of these two philosophies going on in my head was confusing me.

Finally, I asked my rich dad about the difference in philosophies. I asked, “Aren’t security and freedom the same thing?”

Smiling, he replied, “Security and freedom are not the same. In fact, they are opposites. The more security you seek, the less freedom you have. The people with the most security are in jail. That is why it is called ‘maximum security.” 

He went on to say, “If you want freedom, you need to let go of security.” 

“Employees desire security.” 

“Entrepreneurs seek freedom.”

So the question is: Can anyone become an entrepreneur? 

My answer is, “Yes. It begins with a change in philosophy. It begins with a desire for more freedom than security.”

Do What Rich People Do

Doing what rich people do is easy. One of the reasons there are so many wealthy people who didn’t do well in school is because the “to-do” part of becoming wealthy is simple. You don’t have to go to school to become rich. The “to-do” part of becoming rich is definitely not rocket science.

The fact is that people who work the hardest do not wind up rich. If you want to be rich, you need to think independently rather than go along with the crowd. In my opinion, one great asset of the rich is that they think differently than everyone else. If you do what everyone else does, you’ll wind up having what everyone else has. And for most people, what they have is years of hard work, unfair taxes, and a lifetime of debt.

When someone asks me, “What do I have to do to move from the left side of the CASHFLOW® Quadrant to the right side?” 

My response is, “It’s not what you have to do that needs to change, it’s first how you think that needs to change.” 

In other words, it’s who you have to be in order to do what needs to be done.

Moving from the left side of the CASHFLOW Quadrant to the right side is not so much about doing, but about being. It is not so much what the B or I do that makes the difference. It is how they think and who they are at their core being. The good news is that it does not cost much money to change your thinking. In fact, it can be done for free. 

The bad news is that sometimes it’s hard to change your deep core beliefs about money that are handed down from generation to generation, or learned from friends, work, and school. 

But it can be done.

Regards,

Robert Kiyosaki

Robert Kiyosaki
Editor, Rich Dad Poor Dad Daily

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Robert Kiyosaki

Robert Kiyosaki, author of bestseller Rich Dad Poor Dad as well as 25 others financial guide books, has spent his career working as a financial educator, entrepreneur, successful investor, real estate mogul, and motivational speaker, all while running the Rich Dad Company.

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