Part 2: How To [Financially] Survive The Coronavirus
Picking up where we left off…
The current financial crisis started in 1903 with an education crisis. I believe the U.S. education system was taken over when the General Education Board, founded by John D. Rockefeller, decided what kids should learn. This put the influence of education in the hands of the ultra-rich, and the subject of money was not taught in school.
It seems the reason why capitalists like John D. Rockefeller, JP Morgan, Cornelius Vanderbilt, Washington Duke, and Leland Stanford, often called Robber Barons, took over education was to watch for the best and brightest children of the poor and middle-class families. They’d teach them, then hire them as employees, managerial capitalists, to run their corporations. It seems apparent that these Robber Barons did not want students to know much about money, lest they inspire a generation of entrepreneurs versus the steady stream of employees that the Robber Barons needed as employees and managers.
Today, people go to school to learn to work for money, but they learn nothing about how to have money work for them.
The Academics Are Running The Economy
Our schools seem to have forgotten about the American Dream. The problem is that our educational system trains students to be academics and bureaucrats. Our schools do not train our young people to be capitalists. It’s capitalists who so often follow an entrepreneurial path, carrying the torch of capitalism and creating new jobs.
Ask entrepreneurs today and many will tell you that bureaucracies are actively destroying the entrepreneurial spirit of capitalism. They will also say many young graduates do not have the skills required for today’s work environment. In fact, many have a “bad attitude” towards capitalists.
Today we have a global crisis because:
- Schools are more focused on greed not generosity.
- Schools are about “How much money can I make?” versus “How much money can I make serving others?”
- Schools are about ﬁnding a high-paying job rather than creating high-paying jobs.
- Schools are about climbing the corporate ladder rather than creating companies and corporate ladders.
- Schools are about job security rather than ﬁnancial freedom, which is why most employees live in fear of “losing their jobs.”
- Schools teach little to nothing about money, which is why millions of people now believe in entitlement programs, like Social Security and Medicare in the United States. And millions take jobs in government or military service, not to serve their country but for the retirement and medical beneﬁts.
In my opinion, the most important piece of paper is not your diploma, but your financial statement, but we’ve been taught that your diploma is the secret to living a good life.
My grades in school were never good. No matter how hard I studied, I was just an average student. Both my dads were concerned about my grades. And rich dad’s son, Mike, was not much better in school than I was.
One day rich dad took us aside and said, “Your grades are important. But I will let you in on a secret to real life.”
“What is the secret?” we asked.
Leaning forward, rich dad whispered, “My banker has never asked me for my report card. My banker does not care if I was a good student or what school I went to.”
Curious, we asked rich dad, “What does your banker want to see?” “My ﬁnancial statement,” rich dad said, reaching into a ﬁle drawer of his desk. Showing us his ﬁnancial statement, rich dad said, “Your ﬁnancial statement is your report card when you leave school. The problem is, most kids leave school and never know what a ﬁnancial statement is.”
From a very young age, my rich dad burned the image of a simple ﬁnancial statement into my brain. This simple diagram became part of the development of my neural pathways, pathways that would someday guide the direction of my life.
I no longer cared what my high school and college grades were. The only report card that counts for students like I was in the world of capitalism is their ﬁnancial statement.
Although I had learned a lot after years with my rich dad, it took a real estate course and 90 days of making mistakes for the lights to go on in my head. When they did, I knew my transformation had begun. Twenty-ﬁve dollars a month is not a lot of money, yet it was a giant step into the B and I quadrants. My point of view had changed. My focus had changed. My transformation was beginning.
Rich dad would also say, “Finding your own freedom is easy. All you have to do is first look and see what god wants done, and then do what god wants done with the gifts that god has given you. If you will faithfully do that, the abundance of god will pour into your life. Life is not about earning a living. Just look at the birds, the plants, and all of nature’s creations around you. Birds don’t earn a living. Birds and god’s other creatures simply do what they were sent here to do. If you will simply trust in god and do what you were sent here to do, god’s abundance will be with you forever.”
I knew my purpose—what god wanted me to do—was to teach what school doesn’t teach and that is financial education.
When Kim and I retired, she was 37 and I was 47. Many people asked us how we did it. To say that it was tough to explain is an understatement. Imagine telling normal, often well-educated, people that we used debt and taxes to get rich and retire early.
Rather than talk, we spent the next few years creating our CASHFLOW® game. It is the only game in the world that uses a ﬁnancial statement as a scorecard.
The purpose of the game is to teach players how to transform their ordinary income into passive and portfolio income. Many players report the game changed their lives. It changed their lives because the game was designed to change a person’s context.
Editor, Rich Dad Poor Dad Daily