Few days back, I read a book by Robert Kiyosaki named “Rich Dad Poor Dad”. The book basically tells us the difference in the teaching of a poor parent and a rich parent. It also distinguishes people into two types-
Rich dad poor dad explain into two categories
1. Who work for money.
2. Who make money work for them.
People who work for money
In general terms we can say an employee. According to author, these people make money for someone else instead for themselves. These people might have a great knowledge of lots of things like science, maths, history etc but they lack in financial knowledge. This is what makes them poor.
Even if they earn a heavy amount of money it goes in vain, as most of that money leaves their pocket in the form of different taxes. Due to which they live their lives with the burden of mortgages and loans on their heads and end up complaining about the government policies for their miserable life.
The fact, that lack of financial knowledge and not the government policies is the enemy, never pass their minds. After working hard their whole life a fear always bothers them; a fear of losing job. When recession strikes they have no where to go.
Even if they are not sacked by the company in which they work they have to face a cut down in salary and there is nothing they can do about it.
People who make money work for them
These people are employer. Instead of, working for someone else these people make someone else work for them. These people may not have an ample knowledge about many things but their financial wisdom is rock strong.
They know how to turn and twist laws in order to make more profits. In spite of having a huge income the taxes that they pay is close to nil. These rich people make themselves so strong that a useless policy doesn’t bother them at all.
They are the bosses, so, they have the power to fire people. So, when recession strikes what they do, is, start to fire people in order to reduce the company expenses. As you know there are millions and millions of people in this world looking for a job. So, if we go by the theory of supply & demand the value of all these people reduce to a very low level.
In that condition they have to work at a very low wage because if they don’t there are lots of other people waiting to replace them. So, is it better to be an employer then an employee?
Rich dad and poor dad (teach children)
Poor dad teaches his children to work hard, get well educated, score high marks and join an organization. On the contrary, rich dad tells his children to work hard, learn well, start a business and make people work for you. This is what decides the path and the destination of a person. Apart from this, rich dads teach something that neither school teach nor the poor dad; managing money.
If being an employer is so much beneficial then being an employee, then, why every human being is not an employer? This question struck me like a shovel when I read this book for the first time. Isn’t it so obvious that a person who owns a business is much more powerful then the person working for him. But, it is not, as simple as it looks.
First of all if everyone becomes a job giver then who’ll they give the job to? This will disrupt the balance in the society. You know, it is like a jungle, in order for someone to be a hunter, someone else has to be a prey. I know it’s cruel but this is what it is.
The second thing is that not all of us have an ability to run a business. Actually from what I know running a business is very tough. One advantage that an employee has over employer is that when a business organization dies the employee can jump onto some other company but the employer doesn’t have that luxury. I have seen many people who took a great loss in the business and came on the road. So, we can’t say one thing is better than the other.
According to me, being an employer is much riskier but the fruits that it bears also delicious. On the other hand an employee won’t be able to have caviar every day but a daily bread will be ensured.
Other then this, I think the basic idea behind the author’s thinking was that everyone of us should have a financial knowledge, even if you are an employee. Actually, he has a point because there are a very few of us who have a financial base.
So, I think school should start teaching this to their students at an early age because in this modern world the financial education is the reason that separates the have’s from the have not’s.