What the Rich Teach Their Kids about Money a That the Poor and Middle Class Do Not! Ru Ronhart T Kivnealj ENS tet sac cr)“To get over the top financially, you must read Rich Dad Poor Dad. It’s common sense and market savvy for your financial future.” Zig Ziglar World-renowned author and lecturer “If you want all insider wisdom on how to personally get and STAY rich, read this book! Bribe your kids (financially if you have to) to do the same” Mark Victor Hansen Co-author, New York Times #1 Best Selling Chicken Soup Sor the Soul” series “Rich Dad Poor Dad is not your usual book on money...Rich Dad Poor Dad is easy to read and its key messages — such as, getting rich takes focus and nerve, are very simple.” Honolulu Magazine “I only wish I had read this book when I was young, or even better yet my parents had read this book! This is the kind of book you buy and give each of your kids and buy extra copies, on the chance you have grandchildren and this should be your gift, as soon as this child reaches 8 or 9.” Sue Brawn President of Tenant Chek of America “Rich Dad Poor Dad is not about getting rich quickly. It is about taking responsibility for your financial affairs and improving wealth by mastering money. Read it if you want to awaken your financial genius” Dr. Ed Koken Lecturer on Finance, RMIT University, Melbourne “I wish I would have read this book twenty years ago” Larison Clark, Diamond Key Homes INC. Magazine's Fastest Growing Home Builder in America, 1995 “Rich Dad Poor Dad is a starting point for anyone looking to gain control of their financial future.” USA TODAYRich Dad, Poor Dad What The Rich Teach Their Kids About Money— That The Poor And Middle Class Do Not! By Robert T. Kiyosaki with Sharon L. Lechter C.P.A. NEW YORK BOSTONIf you purchase this book without a cover you should be aware that this book may have been stolen property and reported as “unsold and destroyed” to the publisher. In such case neither the author nor the publisher has received any payment for this “stripped book.” This publication is designed to provide competent and reliable information regarding the subject mat- ter covered. However, it is sold with the understanding that the author and publisher are not engaged in rendering legal, financial, or other professional advice. Laws and practices often vary from state to state and if legal or other expert assistance is required, the services of a professional should be sought. ‘The author and publisher specifically disclaim any liability that is incurred from the use or application of the contents of this book. Copyright © 1997, 1998 by Robert T. Kiyosaki and Sharon L. Lechter All rights reserved. Published by Warner Books in association with CASHFLOW ‘Technologies, Inc. CASHFLOW, Rich Dad, Rich Dad's Advisors, Rich Dad’s Seminars, EBSI, BL Thiangle are registered trademarks of CASHFLOW Technologies, Inc. B oo ae Mt Eg A are trademarks of SI SII CASHFLOW Technologies, Inc. Warner Business Books Hachette Book Group USA 1271 Avenue of the Americas New York, NY 10020 Visit our Web sites at www HachetteBookGroupUSA.com and www.richdad.com. Warner Business Books is an imprint of Warner Books, Inc. Printed in the United States of America First Warner Books Edition: May 2000 50 49 48 47 46 45 44 Warner Business Books is a trademark of Time Warner Inc. or an affiliated company. Used under license by Hachette Book Group USA, which is not affiliated with Time Warner Inc. ISBN: 0-446-67745-0 Designed by Insync Graphic Studio, Inc.This book is dedicated to all parents everywhere, a child’s most important teachers.ACKNOWLEDGEMENTS: How does a person say “thank you” when there are so many people to thank? Obviously this book is a thank you to my two fathers who were powerful role models, and to my mom who taught me love and kindness. Yet, the people most directly responsible for this book becoming a reality include my wife Kim who makes my life complete. Kim is my partner in marriage, business, and in life. Without her I would be lost. To Kim’s parents, Winnie and Bill Meyer for raising such a great daughter. I thank Sharon Lechter for picking up the pieces of this book in my computer and putting them together. To Sharon’s husband Mike for being a great intellectual property attorney, and their children Phillip, Shelly, and Rick for their participation and cooperation. I thank Keith Cunningham for financial wisdom and inspiration; Larry and Lisa Clark for the gift of friendship and encouragement; Rolf Parta for technical genius; Anne Nevin, Bobbi DePorter and Joe Chapon for insights into learning; DC and John Harrison, Jannie Tay, Sandy Khoo, Richard and Veronica Tan, Peter Johnston and Suzi Dafnis, Jacqueline Seow, Nyhl Henson, Michael and Monette Hamlin, Edwin and Camilla Khoo, K.C. See and Jessica See, for professional support, Kevin and Sara of InSync for brilliant graphics; John and Shari Burley, Bill and Cindy Shopoff, Van Tharp, Diane Kennedy, C.W. Allen, Marilu Deignan, Kim Arries, and Tom Weisenborn, for their financial intelligence. Sam Georges, Anthony Robbins, Enid Vien, Lawrence and Jayne Taylor-West, Alan Wright, Zig Ziglar, for mental clarity; J.W. Wilson, Marty Weber, Randy Craft, Don Mueller, Brad Walker, Blair and Eileen Singer, Wayne and Lynn Morgan, Mimi Brennan, Jerome Summers, Dr. Peter Powers, Will Hepburn, Dr. Enrique Teuscher, Dr. Robert Marin, Betty Oyster, Julie Belden, Jamie Danforth, Cherie Clark, Rick Merica, Joia Jitahide, Jeff Bassett, Dr. Tom Burns, and Bill Galvin for being great friends and supporters of the projects; to the Center Managers and the tens of thousands of graduates of Money and You and The Business School for Entrepreneurs; and to Frank Crerie, Clint Miller, Thomas Allen and Norman Long for being great partners in business.Table of Contents There Is A Need LESSONS Chapter One Chapter Two Chapter Three Chapter Four Chapter Five Chapter Six Chapter Seven BEGINNINGS Chapter Eight Chapter Nine Chapter Ten Epilogue eee eee ies a Rich Dad, Poot Dade 13 Lesson One— The Rich Don’t Work for Money........ 23 Lesson Two— Why Teach Financial Literacy? ......... 55 Lesson Three— Mind Your Own Business ..........-+ 85 Lesson Four— The History of Taxes and the Power of Corporations . . . Lesson Five— The Rich Invent Money............. 109 Lesson Six— Work to Learn—Don't Work for Money . . 131 Overcoming Obstacles............5+ 147 Getting Started .............- fs 105 Still: Want Mote; 2a 187 College Education for $7,000 ......... 193INTRODUCTION There ts a Need Dees school prepare children for the real world? “Study hard and get good grades and you will find a high-paying job with great benefits,” my parents used to say. Their goal in life was to provide a college education for my older sister and me, so that we would have the greatest chance for success in life. When I finally earned my diploma in 1976—graduating with honors, and near the top of my class, in accounting from Florida State University—my parents had realized their goal. It was the crowning achievement of their lives. In accordance with the “Master Plan,” I was hired by a “Big 8” accounting firm, and I looked forward to a long career and retirement at an early age. My husband, Michael, followed a similar path. We both came from hard-working families, of modest means but with strong work ethics. Michael also graduated with honors, but he did it twice: first as an engineer and then from law school. He was quickly recruited by a prestigious Washington, D.C., law firm that specialized in patent law, and his future seemed bright, career path well-defined and early retirement guaranteed. Although we have been successful in our careers, they have not tuned out quite as we expected. We both have changed positions several times—for all the right reasons—but there are no pension plans vesting on our behalf. Our retirement funds are growing only through our individual contributions. Michael and I have a wonderful marriage with three great children. ‘As I write this, two are in college and one is just beginning high school. We have spent a fortune making sure our children have received the best 1