Chapter One - LESSON 1

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“That’s right,” smiled rich dad. “You see, your dad went to school and got an excellent education, so he could get a high-paying job. But he still has money problems because he never learned anything about money in school. On top of that, he believes in working for money.”

“And you don’t?” I asked.

“No, not really,” said rich dad. “If you want to learn to work for money, then stay in school. That is a great place to learn to do that. But if you want to learn how to have money work for you, then I will teach you that. But only if you want to learn.”

“Wouldn’t everyone want to learn that?” I asked.

“No,” said rich dad, “simply because it’s easier to learn to work for money, especially if fear is your primary emotion when the subject of money is discussed.”

“I don’t understand,” I said with a frown.

“Don’t worry about that for now. Just know that it’s fear that keeps most people working at a job: the fear of not paying their bills, the fear of being fired, the fear of not having enough money, and the fear of starting over. That’s the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money—and then get angry at their boss.”

“Learning to have money work for you is a completely different course of study?” I asked.

“Absolutely,” rich dad answered. “Absolutely.”

We sat in silence on that beautiful Hawaiian Saturday morning. My friends had just startedtheir Little League baseball game, but for some reason I was now thankful I had decided towork for 10 cents an hour. I sensed that I was about to learn something my friends wouldn’tlearn in school.

“Ready to learn?” asked rich dad.

“Absolutely,” I said with a grin.

“I have kept my promise. I’ve been teaching you from afar,” my rich dad said. “At nine years old, you’ve gotten a taste of what it feels like to work for money. Just multiply your last month by fifty years and you will have an idea of what most people spend their life doing.”

“I don’t understand,” I said.

“How did you feel waiting in line to see me, once to get hired and once to ask for more money?”

“Terrible,” I said.

“If you choose to work for money, that is what life will be like,” said rich dad.

“And how did you feel when Mrs. Martin dropped three dimes in your hand for three hours of work?”

“I felt like it wasn’t enough. It seemed like nothing. I was disappointed,” I said.

“And that is how most employees feel when they look at their paychecks—especially after all the tax and other deductions are taken out. At least you got 100 percent.”

“You mean most workers don’t get paid everything?” I asked with amazement. “Heavens no!” said rich dad. “The government always takes its share first.”

“How do they do that?” I asked.

“Taxes,” said rich dad. “You’re taxed when you earn. You’re taxed when you spend. You’re taxed when you save. You’re taxed when you die.”

“Why do people let the government do that to them?”

“The rich don’t,” said rich dad with a smile. “The poor and the middle class do. I’ll bet you that I earn more than your dad, yet he pays more in taxes.”

“How can that be?” I asked. At my age, that made no sense to me.

“Why would someone let the government do that to them?”

Rich dad rocked slowly and silently in his chair, just looking at me.

“Ready to learn?” he asked.

I nodded my head slowly.

“As I said, there is a lot to learn. Learning how to have money work for you is a lifetime study. Most people go to college for four years, and their education ends. I already know that my study of money will continue over my lifetime, simply because the more I find out, the more I find out I need to know. Most people never study the subject. They go to work, get their paycheck, balance their checkbooks, and that’s it. Then they wonder why they have money problems. They think that more money will solve the problem and don’t realize that it’s their lack of financial education that is the problem.”

“So my dad has tax problems because he doesn’t understand money?” I asked, confused.

“Look,” said rich dad, “taxes are just one small section on learning how to have money work for you. Today, I just wanted to find out if you still have the passion to learn about money. Most people don’t. They want to go to school, learn a profession, have fun at their work, and earn lots of money. One day they wake up with big money problems, and then they can’t stop working. That’s the price of only knowing how to work for money instead of studying how to have money work for you. So do you still have the passion to learn?” asked rich dad.

I nodded my head.

“Good,” said rich dad. “Now get back to work. This time, I will pay you nothing.”

“What?” I asked in amazement.

“You heard me. Nothing. You will work the same three hours every Saturday, but this time you will not be paid 10 cents per hour. You said you wanted to learn to not work for money, so I’m not going to pay you anything.”

I couldn’t believe what I was hearing.

“I’ve already had this conversation with Mike and he’s already working, dusting and stacking canned goods for free. You’d better hurry and get back there.”

“That’s not fair,” I shouted. “You’ve got to pay something!”

“You said you wanted to learn. If you don’t learn this now, you’ll grow up to be like the two women and the older man sitting in my living room, working for money and hoping I don’t fire them. Or like your dad, earning lots of money only to be in debt up to his eyeballs, hoping more money will solve the problem. If that’s what you want, I’ll go back to our original deal of 10 cents an hour. Or you can do what most adults do: Complain that there is not enough pay, quit, and go looking for another job.”

“But what do I do?” I asked.

Rich dad tapped me on the head. “Use this,” he said. “If you use it well, you will soon thankme for giving you an opportunity and you will grow into a rich man.”

I stood there, still not believing what a raw deal I was handed. I came to ask for a raise, andsomehow I was instead working for nothing.

Rich dad tapped me on the head again and said, “Use this. Now get out of here and get backto work.”

Lesson #1: The Rich Don’t Work for Money

I didn’t tell my poor dad I wasn’t being paid. He wouldn’t have understood, and I didn’twant to try to explain something I didn’t understand myself.

For three more weeks, Mike and I worked three hours every Saturday for nothing. The workdidn’t bother me, and the routine got easier, but it was the missed baseball games and notbeing able to afford to buy a few comic books that got to me.

Rich dad stopped by at noon on the third week. We heard his truck pull up in the parking lotand sputter when the engine was turned off. He entered the store and greeted Mrs. Martinwith a hug. 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.

“Let’s go for a walk, boys.”

We crossed the street, dodging a few cars, and walked across a large grassy field where afew adults were playing softball. Sitting down at a lone picnic table, he handed Mike and methe treats.

“How’s it going, boys?”

“Okay,” Mike said.

I nodded in agreement.

“Learn anything yet?” rich dad asked.

Mike and I looked at each other, shrugged our shoulders, and shook our heads in unison.

Avoiding One of Life’s Biggest Traps

“Well, you boys had better start thinking. You’re staring at one of life’s biggest lessons. Ifyou learn it, you’ll enjoy a life of great freedom and security. If you don’t, you’ll wind uplike Mrs. Martin and most of the people playing softball in this park. They work very hardfor little money, clinging to the illusion of job security and looking forward to a three-weekvacation each year and maybe a skimpy pension after forty-five years of service. If thatexcites you, I’ll give you a raise to 25 cents an hour.”

“But these are good hardworking people. Are you making fun of them?” I demanded.

A smile came over rich dad’s face.

“Mrs. Martin is like a mother to me. I would never be that cruel. I may sound unkind because I’m doing my best to point something out to the two of you. I want to expand your point of view so you can see something most people never have the benefit of seeing because their vision is too narrow. Most people never see the trap they are in.”

Mike and I sat there, uncertain of his message. He sounded cruel, yet we could sense he wastrying to drive home a point.

With a smile, rich dad said, “Doesn’t that 25 cents an hour sound good? Doesn’t it makeyour heart beat a little faster?”

I shook my head no, but it really did. Twenty-five cents an hour would be big bucks to me.

“Okay, I’ll pay you a dollar an hour,” rich dad said, with a sly grin.

Now my heart started to race. My brain was screaming, “Take it. Take it.” I could notbelieve what I was hearing. Still, I said nothing.

“Okay, two dollars an hour.”

My little brain and heart nearly exploded. After all, it was 1956 and being paid $2 an hourwould have made me the richest kid in the world. I couldn’t imagine earning that kind of money. I wanted to say yes. I wanted the deal. I could picture a new bicycle, new baseball glove, and the adoration of my friends when I flashed some cash. On top of that, Jimmy and his rich friends could never call me poor again.

But somehow my mouth stayed shut.

The ice cream had melted and was running down my hand. Rich dad was looking at twoboys staring back at him, eyes wide open and brains empty. He was testing us, and he knewthere was a part of our emotions that wanted to take the deal. He understood that everyperson has a weak and needy part of their soul that can be bought, and he knew that everyindividual also had a part of their soul that was resilient and could never be bought. It wasonly a question of which one was stronger.

“Okay, five dollars an hour.”

Suddenly I was silent. Something had changed. The offer was too big and ridiculous. Notmany grown-ups in 1956 made more than that, but quickly my temptation disappeared, andcalm set in. Slowly, I turned to my left to look at Mike. He looked back at me. The part ofmy soul that was weak and needy was silenced. The part of me that had no price took over. Iknew Mike had gotten to that point too.

“Good,” rich dad said softly. “Most people have a price. And they have a price because of human emotions named fear and greed. First, the fear of being without money motivates us to work hard, and then once we get that paycheck, greed or desire starts us thinking about all the wonderful things money can buy. The pattern is then set.”

“What pattern?” I asked.

“The pattern of get up, go to work, pay bills; get up, go to work, pay bills. People’s lives are forever controlled by two emotions: fear and greed. Offer them more money and they continue the cycle by increasing their spending. This is what I call the Rat Race.”

“There is another way?” Mike asked.

“Yes,” said rich dad slowly. “But only a few people find it.”

“And what is that way?” Mike asked. “That’s what I hope you boys will learn as you work and study with me.

That is why I took away all forms of pay.”

“Any hints?” Mike asked. “We’re kind of tired of working hard, especially for nothing.”

“Well, the first step is telling the truth,” said rich dad.

“We haven’t been lying,” I said.

“I did not say you were lying. I said to tell the truth,” rich dad retorted.

“The truth about what?” I asked.

“How you’re feeling,” rich dad said. “You don’t have to say it to anyone else. Just admit it to yourself.”

“You mean the people in this park, the people who work for you, Mrs. Martin, they don’t do that?” I asked.

“I doubt it,” said rich dad. “Instead, they feel the fear of not having money. They don’t confront it logically. They react emotionally instead of using their heads,” rich dad said. “Then, they get a few bucks in their hands and again, the emotions of joy, desire, and greed take over. And again they react, instead of think.”

“So their emotions control their brain,” Mike said.

“That’s correct,” said rich dad. “Instead of admitting the truth about how they feel, they react to their feelings and fail to think. They feel the fear so they go to work, hoping that money will soothe the fear, but it doesn’t. It continues to haunt them and they return to work, hoping again that money will calm their fears, and again it doesn’t. Fear keeps them in this trap of working, earning money, working, earning money, hoping the fear will go away. But every day they get up, and that old fear wakes up with them. For millions of people that old fear keeps them awake all night, causing a night of turmoil and worry. So they get up and go to work, hoping that a paycheck will kill that fear gnawing at their soul. Money is running their lives, and they refuse to tell the truth about that. Money is in control of their emotions and their souls.”

Rich dad sat quietly, letting his words sink in. Mike and I heard what he said but didn’tunderstand fully what he was talking about. I just knew that I often wondered why grown-upshurried off to work.

It did not seem like much fun, and they never looked that happy, but something kept themgoing.

Realizing we had absorbed as much as possible of what he was talking about, rich dad said, “I want you boys to avoid that trap. That is really what I want to teach you. Not just to berich, because being rich does not solve the problem.”

“It doesn’t?” I asked, surprised.

“No, it doesn’t. Let me explain the other emotion: desire. Some call it greed, but I prefer desire. It’s perfectly normal to desire something better, prettier, more fun, or exciting. So people also work for money because of desire. They desire money for the joy they think it can buy. But the joy that money brings is often short-lived, and they soon need more money for more joy, more pleasure, more comfort, and more security. So they keep working, thinking money will soothe their souls that are troubled by fear and desire. But money can’t do that.”

“Even rich people do this?” Mike asked.

“Rich people included,” said rich dad. “In fact, the reason many rich people are rich isn’t because of desire, but because of fear. They believe that money can eliminate the fear of being poor, so they amass tons of it, only to find the fear gets worse. Now they fear losing the money. I have friends who keep working even though they have plenty. I know people who have millions who are more afraid now than when they were poor. They’re terrified of losing it all. The fears that drove them to get rich got worse. That weak and needy part of their soul is actually screaming louder. They don’t want to lose the big houses, the cars and the high life money has bought them. They worry about what their friends would say if they lost all their money. Many are emotionally desperate and neurotic, although they look rich and have more money.”

“So is a poor man happier?” I asked.

“No, I don’t think so,” replied rich dad. “The avoidance of money is just as psychotic as being attached to money.”

As if on cue, the town derelict went past our table, stopping by the large rubbish can andrummaging around in it. The three of us watched him with great interest, when before weprobably would have just ignored him.

Rich dad pulled a dollar out of his wallet and gestured to the older man. Seeing the money,the derelict came over immediately, took the bill, thanked rich dad profusely, and hurriedoff, ecstatic with his good fortune.

“He’s not much different from most of my employees,” said rich dad. “I’ve met so many people who say, ‘Oh, I’m not interested in money.’ Yet they’ll 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? That kind of thinking is probably more psychotic than a person who hoards money.”

As I sat there listening to my rich dad, my mind flashed back to the countless times my owndad said, “I’m not interested in money.” He said those words often. He also covered himselfby always saying, “I work because I love my job.”

“So what do we do?” I asked. “Not work for money until all traces of fear and greed are gone?”

“No, that would be a waste of time,” said rich dad. “Emotions are what make us human. The word ‘emotion’ stands for ‘energy in motion.’ Be truthful about your emotions and use your mind and emotions in your favor, not against yourself.”

“Whoa!” said Mike.

“Don’t worry about what I just said. It will make more sense in years to come. Just be an observer, not a reactor, to your emotions. Most people do not know that it’s their emotions that are doing the thinking. Your emotions are your emotions, but you have got to learn to do your own thinking.”

“Can you give me an example?” I asked.

“Sure,” replied rich dad. “When a person says, ‘I need to find a job,’ it’s most likely an emotion doing the thinking. Fear of not having money generates that thought.”

“But people do need money if they have bills to pay,” I said.

“Sure they do,” smiled rich dad. “All I’m saying is that it’s fear that is all too often doing the thinking.”

“I don’t understand,” said Mike.

“For example,” said rich dad. “If the fear of not having enough money arises, instead of immediately running out to get a job, they instead might ask themselves this question: ‘Will a job be the best solution to this fear over the long run?’ In my opinion, the answer is no. A job is really a short-term solution to a long-term problem.”

“But my dad is always saying, ‘Stay in school and get good grades, so you can find a safe, secure job,’” I interjected, somewhat confused.

“Yes, I understand he says that,” said rich dad, smiling. “Most people recommend that, and it’s a good path for most people. But people make that recommendation primarily out of fear.”

“You mean my dad says that because he’s afraid?”

“Yes,” said rich dad. “He’s terrified that you won’t earn enough money and won’t fit into society. Don’t get me wrong. He loves you and wants the best for you. I too believe an education and a job are important, but it won’t handle the fear. You see, that same fear that makes him get up in the morning to earn a few bucks is the fear that is causing him to be so fanatical about your going to school.”

“So what do you recommend?” I asked.

“I want to teach you to master the power of money, instead of being afraid of it. They don’t teach that in school and, if you don’t learn it, you become a slave to money.”

It was finally making sense. He wanted us to widen our views and to see what the Mrs. Martins of this world couldn’t see. He used examples that sounded cruel at the time, but I’venever forgotten them. My vision widened that day, and I began to see the trap that lay aheadfor most people.

“You see, we’re all employees ultimately. We just work at different levels,” said rich dad. “I just want you boys to have a chance to avoid the trap caused by those two emotions, fear and desire. Use them in your favor, not against you. That’s what I want to teach you. I’m not interested in just teaching you to make a pile of money. That won’t handle the fear or desire. If you don’t first handle fear and desire, and you get rich, you’ll only be a highly paid slave.”

“So how do we avoid the trap?” I asked.

“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 keep people trapped. So you boys go to school and get your college degrees, and I’ll teach you how to stay out of the trap.”

The pieces of the puzzle were appearing. My highly educated dad had a great education anda great career, but school never told him how to handle money or his fear of it. It becameclear that I could learn different and important things from two fathers.

“So you’ve been talking about the fear of not having money. How does the desire for money affect our thinking?” Mike asked.

“How did you feel when I tempted you with a pay raise? Did you notice your desires rising?”

We nodded our heads. “By not giving in to your emotions, you were able to delay yourreactions and think. That is important. We will always have emotions of fear and greed. From here on in, it’s imperative for you to use those emotions to your advantage, and for thelong term to not let your emotions control your thinking. Most people use fear and greedagainst themselves. That’s the start of ignorance. Most people live their lives chasingpaychecks, pay raises and job security because of the emotions of desire and fear, not reallyquestioning where those emotion-driven thoughts are leading them. It’s just like the pictureof a donkey dragging a cart with its owner dangling a carrot just in front of its nose. The donkey’s owner may be going where he wants to, but the donkey is chasing an illusion.

Tomorrow there will only be another carrot for the donkey.”

“You mean the moment I picture a new baseball glove, candy and toys, that’s like a carrot to a donkey?” Mike asked.

“Yes, and as you get older, your toys get more expensive—a new car, a boat, and a big house to impress your friends,” said rich dad with a smile. “Fear pushes you out the door, and desire calls to you. That’s the trap.”

“So what’s the answer,” Mike asked.

“What intensifies fear and desire is ignorance. That is why rich people with lots of money often have more fear the richer they get. Money is the carrot, the illusion. If the donkey could see the whole picture, it might rethink its choice to chase the carrot.”

Rich dad went on to explain that a human’s life is a struggle between ignorance andillumination.

He explained that once a person stops searching for information and self-knowledge,ignorance sets in. That struggle is a moment-to-moment decision—to learn to open or closeone’s mind.

“Look, school is very important. You go to school to learn a skill or profession to become a contributing member of society. Every culture needs teachers, doctors, mechanics, artists, cooks, businesspeople, police officers, firefighters, and soldiers. Schools train them so society can thrive and flourish,” said rich dad. “Unfortunately, for many people school is the end, not the beginning.”

There was a long silence. Rich dad was smiling. I didn’t comprehend everything he said thatday. But as with most great teachers, his words continued to teach for years.

“I’ve been a little cruel today,” said rich dad. “But I want you to always remember this talk. I want you to always think of Mrs. Martin. And I want you always to remember that donkey. Never forget that fear and desire can lead you into life’s biggest trap if you’re not aware of them controlling your thinking. To spend your life living in fear, never exploring your dreams, is cruel. To work hard for money, thinking that it will buy you things that will make you happy is also cruel. To wake up in the middle of the night terrified about paying bills is a horrible way to live. To live a life dictated by the size of a paycheck is not really living a life. Thinking that a job makes you secure is lying to yourself. That’s cruel, and that’s the trap I want you to avoid. I’ve seen how money runs people’s lives. Don’t let that happen to you. Please don’t let money run your life.”

A softball rolled under our table. Rich dad picked it up and threw it back.

“So what does ignorance have to do with greed and fear?” I asked.

“Because it is ignorance about money that causes so much greed and fear,” said rich dad.“Let me give you some examples. A doctor, wanting more money to better provide for his family, raises his fees. By raising his fees, it makes health care more expensive for everyone. It hurts the poor people the most, so they have worse health than those with money. Because the doctors raise their fees, the attorneys raise their fees. Because the attorneys’ fees have gone up, schoolteachers want a raise, which raises our taxes, and on and on and on. Soon there will be such a horrifying gap between the rich and the poor that chaos will break out and another great civilization will collapse. History proves that great civilizations collapse when the gap between the haves and have-nots is too great. Sadly, America is on that same course because we haven’t learned from history. We only memorize historical dates and names, not the lesson.”

“Aren’t prices supposed to go up?” I asked.

“In an educated society with a well-run government, prices should actually come down. Of course, that is often only true in theory. Prices go up because of greed and fear caused by ignorance. If schools taught people about money, there would be more money and lower prices. But schools focus only on teaching people to work for money, not how to harness money’s power.”

“But don’t we have business schools?” Mike asked. “And haven’t you encouraged me to go for my MBA?”

“Yes,” said rich dad. “But all too often business schools train employees to become sophisticated bean-counters. Heaven forbid a bean-counter takes over a business. All they do is look at the numbers, fire people, and kill the business. I know this because I hire beancounters. All they think about is cutting costs and raising prices, which cause more problems. Bean-counting is important. I wish more people knew it, but it, too, is not the whole picture,” added rich dad angrily.

“So is there an answer?” asked Mike.

“Yes,” said rich dad. “Learn to use your emotions to think, not think with your emotions. When you boys mastered your emotions by agreeing to work for free, I knew there was hope. When you again resisted your emotions when I tempted you with more money, you were again learning to think in spite of being emotionally charged. That’s the first step.”

“Why is that step so important?” I asked.

“Well, that’s up to you to find out. If you want to learn, I’ll take you boys into the briar patch, a place almost everyone else avoids. If you go with me, you’ll let go of the idea of working for money and instead learn to have money work for you.” “And what will we get if we go with you. What if we agree to learn from you? What will we get?” I asked. “The same thing Brer Rabbit got,” said rich dad, referring to the classic children’s story.

“Is there a briar patch?” I asked.

“Yes,” said rich dad. “The briar patch is our fear and greed. Confronting fear, weaknesses, and neediness by choosing our own thoughts is the way out.”

“Choosing our thoughts?” Mike asked, puzzled.

“Yes. Choosing what we think rather than reacting to our emotions.

Instead of just getting up and going to work because not having the money to pay your bills isscaring you, ask yourself, ‘Is working harder at this the best solution to this problem?’ Mostpeople are too afraid to rationally think things through and instead run out the door to a jobthey hate. The Tar Baby is in control. That’s what I mean by choosing your thoughts.”

“And how do we do that?” Mike asked.

“That’s what I will teach you. I’ll teach you to have a choice of thoughts rather than a kneejerk reaction, like gulping down your morning coffee and running out the door.

“Remember what I said before: A job is only a short-term solution to a long-term problem. Most people have only one problem in mind, and it’s short-term. It’s the bills at the end of the month, the Tar Baby. Money controls their lives, or should I say the fear and ignorance about money controls it. So they do as their parents did. They get up every day and go work for money, not taking the time to ask the question, ‘Is there another way?’ Their emotions now control their thinking, not their heads.”

“Can you tell the difference between emotions thinking and the head thinking?” Mike asked.

“Oh, yes. I hear it all the time,” said rich dad. “I hear things like, ‘Well, everyone has to work.’ Or ‘The rich are crooks.’ Or ‘I’ll get another job. I deserve this raise. You can’t push me around.’ Or ‘I like this job because it’s secure.’ No one asks, ‘Is there something I’m missing here?’ which would break through the emotional thought and give you time to think clearly.”

As we headed back to the store, rich dad explained that the rich really did “make money.” They did not work for it. He went on to explain that when Mike and I were casting five-centpieces out of lead, thinking we were making money, we were very close to thinking the waythe rich think. The problem was that creating money is legal for the government and banks todo, but illegal for us to do. There are legal ways to create money from nothing, he told us.

Rich dad went on to explain that the rich know that money is an illusion, truly like the carrotfor the donkey. It’s only out of fear and greed that the illusion of money is held together bybillions of people who believe that money is real. It’s not. Money is really made up. It isonly because of the illusion of confidence and the ignorance of the masses that this house ofcards stands.

He talked about the gold standard that America was on, and that each dollar bill was actually a silver certificate. What concerned him was the rumor that we would someday go off the gold standard and our dollars would no longer be backed by something tangible.

“If that happens, boys, all hell will break loose. The poor, the middle class, and the ignorant will have their lives ruined simply because they will continue to believe that money is real and that the company they work for, or the government, will look after them.”

We really did not understand what he was saying that day, but over the years, it made moreand more sense.

Seeing What Others Miss

As he climbed into his pickup truck outside his convenience store, rich dad said, “Keepworking boys, but the sooner you forget about needing a paycheck, the easier your adult lifewill be. Keep using your brain, work for free, and soon your mind will show you ways ofmaking money far beyond what I could ever pay you. You will see things that other peoplenever see. Most people never see these opportunities because they’re looking for money andsecurity, so that’s all they get. The moment you see one opportunity, you’ll see them for therest of your life. The moment you do that, I’ll teach you something else. Learn this, andyou’ll avoid one of life’s biggest traps

Mike and I picked up our things from the store and waved goodbye to Mrs. Martin. We wentback to the park, to the same picnic bench, and spent several more hours thinking and talking.

We spent the next week at school thinking and talking, too. For two more weeks, we keptthinking, talking, and working for free.

At the end of the second Saturday, I was again saying goodbye to Mrs. Martin and looking atthe comic-book stand with a longing gaze. The hard thing about not even getting 30 centsevery Saturday was that I didn’t have any money to buy comic books. Suddenly, as Mrs. Martin said goodbye to Mike and me, I saw her do something I’d never seen her do before.

Mrs. Martin was cutting the front page of the comic book in half. She kept the top half of thecomic book cover and threw the rest of the book into a large cardboard box. When I askedher what she did with the comic books, she said, “I throw them away. I give the top half ofthe cover back to the comic-book distributor for credit when he brings in the new comics. He’s coming in an hour.”

Mike and I waited for an hour. Soon the distributor arrived, and I asked him if we couldhave the comic books. To my delight, he said, “You can have them if you work for this storeand do not resell them.”

Remember our old business partnership? Well, Mike and I revived it. Using a spare room in Mike’s basement, we began piling hundreds of comic books in that room. Soon our comic-book library was open to the public. We hired Mike’s younger sister, who loved to study, tobe head librarian. She charged each child 10 cents admission to the library, which was openfrom 2:30 p.m. to 4:30 p.m. every day after school. The customers, the children of the neighborhood, could read as many comics as they wanted in two hours. It was a bargain for them since a comic cost 10 cents each, and they could read five or six in two hours.

Mike’s sister would check the kids as they left to make sure they weren’t borrowing anycomic books. She also kept the books, logging in how many kids showed up each day, whothey were, and any comments they might have. Mike and I averaged $9.50 per week over athree-month period. We paid his sister one dollar a week and allowed her to read thecomics for free, which she rarely did since she was always studying.

Mike and I kept our agreement by working in the store every Saturday and collecting all thecomic books from the different stores. We kept our agreement to the distributor by notselling any comic books. We burned them once they got too tattered. We tried opening abranch office, but we could never quite find someone as trustworthy and dedicated as Mike’s sister. At an early age, we found out how hard it was to find good staff.

Three months after the library first opened, a fight broke out in the room. Some bullies fromanother neighborhood pushed their way in, and Mike’s dad suggested we shut down thebusiness. So our comic-book business shut down, and we stopped working on Saturdays atthe convenience store. But rich dad was excited because he had new things he wanted toteach us. He was happy because we had learned our first lesson so well: We learned tomake money work for us. By not getting paid for our work at the store, we were forced touse our imaginations to identify an opportunity to make money. By starting our own business,the comic-book library, we were in control of our own finances, not dependent on an employer. The best part was that our business generated money for us, even when we weren’t physically there. Our money worked for us. Instead of paying us money, rich dad had given us so much more.