My highly educated dad recommended that I do what he did. "Son, I want you to study hard, get good grades, so you can find a safe, secure job with a big company. And make sure it has excellent benefits." My rich dad wanted me to learn how money works so I could make it work for me. These lessons I would learn through life with his guidance, not because of a classroom.

On that bright Saturday morning, I was learning a completely different point of view from what I had been taught by my poor dad. At the age of 9, I grew aware that both dads wanted me to learn. Both dads encouraged me to study… but not the same things.

My rich dad continued my first lesson, "I'm glad you got angry about working for 10 cents an hour. If you had not gotten angry and had gladly accepted it, I would have to tell you that I could not teach you. You see, true learning takes energy, passion, a burning desire. Anger is a big part of that formula, for passion is anger and love combined. When it comes to money, most people want to play it safe and feel secure. So passion does not direct them: Fear does."

"So is that why they'll take a job with low par?" I asked.

"Yes," said rich dad. "Some people say I exploit people because I don't pay as much as the sugar plantation or the government. I say the people exploit themselves. It's their fear, not mine."

"I don't have to. And besides, more money will not solve the problem. Just look at your dad. He makes a lot of money, and he still can't pay his bills. Most people, given more money, only get into more debt."

"And you don't?" I asked.

"So that's why the 10 cents an hour," I said, smiling. "It's a part of the lesson."

"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. Which he did. But he still has money problems because he never learned anything about money at school. On top of that, he believes in working for money."

"But don't you feel you should pay them more?" 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."

"Absolutely," rich dad answered, "absolutely."

"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.

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

"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. 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."

We sat in silence on that beautiful Hawaiian Saturday morning. My friends would have just been starting their Little League baseball game. But far some reason, I was now thankful I had decided to work for 10 cents an hour. I sensed that I was about to learn something my friends would not learn in school.

"I have kept my promise. I've been teaching you from afar," my rich dad said. "At 9 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."

"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."

"Ready to learn?" asked rich dad.

"Absolutely," I said with a grin.

"Terrible," I said.

"If you choose to work for money, that is what life is like for many people," said rich dad.

"How did you feel waiting in line to see me? Once to get hired and once to ask for more money?"

"I don't understand," I said.

"And how did you feel when Mrs. Martin dropped three dimes in your hand for three hours' work?"

"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."

"I felt like it wasn't enough. It seemed like nothing. I was disappointed," I said.

"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."

Rich dad sat there in silence. I guess he wanted me to listen instead of jabber away at the mouth.

I nodded my head slowly.

"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."

Finally, I calmed down. I did not like what I had heard. I knew my dad complained constantly about paying so much in taxes, but really did nothing about it. Was that life pushing him around?

"How do they do that." I asked.

"Ready to learn?" he asked.

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

"How can that be?" I asked. As a 9-year-old boy, that made no sense to me. "Why would someone let the government do that to them?"

"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. On top of that, they wonder why they have money problems. Then, they think that more money will solve the problem. Few realize that it's their lack of financial education that is the problem."

I nodded my head.

"What?" I asked in amazement.

"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.

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

"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.

"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 people grow up to do. Complain that there is not enough pay, quit and go looking for another job."

I stood there still not believing what a raw deal I had been handed. Here I came to ask for a raise, and now I was being told to keep working for nothing.

"That's not fair," I shouted. "You've got to pay something."

"I've already had this conversation with Mike. He's already working, dusting and stacking canned goods for free. You'd better hurry and get back there."

"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 thank me for giving you an opportunity, and you will grow into a rich man."

I didn't tell my poor dad I wasn't being paid. He would not have understood, and I did not want to try to explain something that I did not yet understand myself.

LESSON #l: The Rich Don't Work For Money

Rich dad stopped by at noon on the third week. We heard his truck pull up in the parking lot and sputter when the engine was turned off. He entered the store and greeted Mrs. Martin with 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 signalled to Mike and me.

Rich dad tapped me on the head again and said, "Use this. Now get out of here and get back to work."

We crossed the street, dodging a few cars, and walked across a large grassy field, where a few adults were playing softball. Sitting down at a remote picnic table, he handed Mike and me the ice-cream bars.

For three more weeks, Mike and I worked for three hours, every Saturday, for nothing. The work didn't bother me, and the routine got easier. It was the missed baseball games and not being able to afford to buy a few comic books that got to me.

"Let's go for a walk boys."

Avoiding One of Life's Biggest Traps

"How's it going boys?" he asked.

"OK," 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.

"Well, you boys had better start thinking. You're staring at one of life's biggest lessons. If you learn the lesson, you'll enjoy a life of great freedom and security. If you don't learn the lesson, you'll wind up like Mrs. Martin and most of the people playing softball in this park. They work very hard, for little money, clinging to the illusion of job security, looking forward to a three-week vacation each year and a skimpy pension after forty-five years of work. If that excites you, I'll give you a raise to 25 cents an hour."

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 cruel 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. Something most people never have the benefit of seeing because their vision is too narrow. Most people never see the trap they are in."

"But these are good hard-working people. Are you making fun of them?" I demanded.

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

With a smile, rich dad said, "Doesn't that 25 cents an hour sound good? Doesn't it make your heart beat a little faster."

Mike and I sat there uncertain of his message. He sounded cruel, yet we could sense he was desperately wanting us to know something.

"OK, I'll pay you a dollar an hour," rich dad said, with a sly grin.

My little 9-year-old brain and heart nearly exploded. After all, it was 1956 and being paid $2 an hour would 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 see a new bicycle, new baseball glove, and 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 silent.

Now my heart was beginning to race. My brain was screaming,"Take it. Take it." I could not believe what I was hearing. Still, I said nothing.

"OK, $2 an hour."

Rich dad was looking at two boys staring back at him, eyes wide open and brains empty. He knew he was testing us, and he knew there was a part of our emotions that wanted to take the deal. He knew that each human being has a weak and needy part of their soul that can be bought. And he knew that each human being also had a part of their soul that was strong and filled with a resolve that could never be bought. It was only a question of which one was stronger. He had tested thousands of souls in his life. He tested souls every time he interviewed someone for a job.

"OK, $5 an hour."

Suddenly there was a silence from inside me. Something had changed. The offer was too big and had gotten ridiculous. Not too many grownups in 1956 made more than $5 an hour. The temptation disappeared, and a calm set in. Slowly I turned to my left to look at Mike. He looked back at me. The part of my soul that was weak and needy was silenced. The part of me that had no price took over. There was a calm and a certainty about money that entered my brain and my soul. I knew Mike had gotten to that point also.

The ice cream had melted and was running down my hand. The ice-cream stick was empty, and under it was a sticky mess of vanilla and chocolate that ants were enjoying.

Maybe my brain had overheated and blown a fuse. But deep down, I badly wanted that $2 an hour.

"Any hints?" Mike asked. "We're kind of tired of working hard, especially for nothing."

"There is another way?" Mike asked.

"What pattern?" I asked.

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

"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."

"And what is that way?" Mike asked.

"The pattern of get up, go to work, pay bills, get up, go to work, pay bills… Their lives are then run forever by two emotions, fear and greed. Offer them more money, and they continue the cycle by also increasing their spending. This is what I call the Rat Race."

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

"That's what I hope you boys will find out as you work and study with me. That is why I took away all forms of pay."

"I did not say you were lying. I said to tell the truth," rich dad came back.

"The truth about what?" I asked.

"We haven't been lying." I said.

"How you're feeling," rich dad said. "You don't have to say it to anyone else. Just 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. Instead of confronting the fear, they react instead of think. They react emotionally instead of using their heads," rich dad said, tapping us on our heads. "'Then, they get a few bucks in their hands, and again the emotion of joy and desire and greed take over, and again they react, instead of think."

"That's correct," said rich dad. "Instead of telling the truth about how they feel, they react to their feeling, fail to think. They feel the fear, they go to work, hoping that money will soothe the fear, but it doesn't. That old fear haunts them, and they go back to work, hoping again that money will calm their fears, and again it doesn't. Fear has 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 hence their souls."

"So their emotions do their thinking," Mike said.