Sharon narrates her life at the very beginning of this best seller. She was raised by parents who provided the best formal education. She graduated with honors; got a good job, a good family and settled. She sorted to raising her son the same way her parents did her. However, the world had changed; graduates were not earning the same anymore. Her husband, a patent lawyer was also raised the same way. When she met Robert Kiyosaki through him, he explained to her the rat race in which she was sending her son into, in a world where formal education was slowly losing value as the only method of lifetime acquisition of wealth.
The Rat Race (Life of an average educated person)
A child is born, the child is taken to school and encouraged to get good grades. The child studies all the way to college level and graduates, ready to begin life. The adult lands a good job, financial ability increases and he/she gets married and haves children. The demand for cash increases. He goes back to school so he can get a promotion and earn more money. Meanwhile taxes go up and he works hard till retirement, raising children the same way.
Robert’s Analysis (The need to break this circle)
At the age of 16, he knew he wanted to own a corporation. These are ideas parents consider radical, especially when discovered at a young age. He retired at the age of 47, a self-made man. According to him, people are studying subjects they will never use, preparing for a world that does not exist. The rat race lifestyle is the most dangerous way of living. When employees are laid off, the company’s stock prices go up because labor cost is reduced. When stocks go up, shareholders get richer because they thought like investors, not like employees.
He had two dads who gave different pieces of advice:
- Work for the corporation.
- Be smart.
- Own the corporation
- Hire smart people.
Sharon says that Robert’s explanation of financial literacy opened her eyes. This contributed to her building a fortune for herself as well.
I did this math so long ago. I was always starting something, failing here and there but I wanted to be my own boss. In between breaks in campus and after high school, I held jobs. At times I thought, ‘You mean people do this all their life? When do they enjoy the money they work for?’ I finally sorted to learning as much as I could about rich people who started successful businesses. That led me to analyzing the skills I have and combining them to create a business. I also learned that passion plays a big role too in creating something and the employees who get promoted most of the time have some entrepreneurship skills that enable them to be a cut above the rest.
I would make a terrible employee since I know how creative I can be and as challenging as entrepreneurship is, I believe the reward will be worth the while. If I were in the laboratory world where I should be, I would definite have my own lab. If I were a lawyer, I would want my own firm. Maybe I was born an entrepreneur but I believe anybody can nurture skills and retire early as opposed to being in the rat race.