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.
My Conclusion
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.
Related Posts
Money or Passion? What is more important to You?
Delhi gang rape -Youth Role Play
What is the purpose of life – Are we programed 
How to feel happy – 10 Things you can do this day to feel happy
How to overcome stage fear? 8 Best methods to overcome stage fear
How to get success in life? 5 steps to succeed in life.
Importance of time management
How to overcome shyness and be more confident
How to improve your personality with easy steps
What is a Short term goals plan & how to make an effective short term goals plan
Hi Shorya
Great knowledge shared!
That is something I was looking forward to, I was going through one of the articles on Margarita’s blog where she was referring to employee as hamster-on-wheel who does not have the guts to get off and start his own.
It’s very difficult to leave the comfort zone and start something. There are so many if’s and but’s attached to it.It’s very difficult to follow passion without money and financial stability but only thing that can take us forward is killer instinct, patience, focussed approach and Never say die spirit.
Thanks for sharing this great information.
Sapna
sapna recently posted…A Naive Bloggers Day Without Electricity
Hi Sapna ji,
I agree with you on how difficult it is to get out of that comfort zone, especially, if you have a family to support. But I think this is completely up to a person. If he/she can live with a feeling inside, about the road not taken then it’s fine. Otherwise, it is better to try and fail rather then not trying at all.
Thank you.
Shorya Bist
Shorya Bist recently posted…19 Ill effects of smoking
I also agree that financial education is very important from a young age. It can be done at home or it can be done at school, what ever the case maybe, its important especially when finance is what makes a country powerful. Also in my opinion, those who are risk takers can be more successful compared to those who just follow the crowd.
Shalu Sharma recently posted…Traffic in India – what to expect
Hi Shalu ji,
From what I know the education systems are not very flexible, so, if parents have good financial knowledge, then, they don’t have to wait for education system to change. They can teach their children on their own. And about the risk part, history tells “No great man has achieved his greatness without taking risks “.
Thank you.
Shorya Bist
Shorya Bist recently posted…Is there life after Death?Do you believe in life after death?
That book particularly from Robert is one of my favorite reading on investment. In fact it was Kiyosaki who made me open for the possibilities in network marketing, which he calls the business model of the 21st century – which by the way dead on.
thanks for the share!
Akos
Akos Fintor recently posted…MLM Mindset | Why You Need To Stop Learning New Stuff for a Day
Hi Akos,
Robert Kiyosaki is one of my favorites too and this book completely changed the way I looked at things. After reading this, I stopped looking at things as cheap or expensive, ugly or beautiful, instead, I saw them as Liability or an asset.
Thank you.
Shorya Bist
Shorya Bist recently posted…How to overcome stage fear? 8 Best methods to overcome stage fear
Hi Shorya,
A thought provoking post mate
I’ve heard of this ~ If you can’t be successful yourself, go help someone else to be successful and in return you will be successful. It’s true and there’s a greater risk as being an employer. It’s not easy peacy one and need to aware of where the company or business heading. So even someone would love to be a boss and earn a lot, they are not willing to take the risk. People are mostly defensive and think about safety more
I know, they are attached with responsibilities. Else we would have heard of success stories in every minute, no?
I did work for one and it was a great experience. But there folks who on top just keep claiming about losses and sharing profits while we making money for ‘em with our efforts. I just don’t like that. You know there’s a competition among employees too and I’ve had enough experiences. I have no intention of work for someone or get work from someone yet. I don’t have time to compete with employees either. I just like to be all work is mine and profit/loss is mine without being part of someone else’s success story. Well, that’s me
My dad is not rich and want me to have a day job too
You are right there. So I’m on a challenge. But I think, it’s not always the rich or poor dad that matters. It’s not school that teach you how to run a business. It’s son or daughter who would take the action towards it 
Bill Gates’ dad wasn’t rich either 
lol… If we don’t take action, we can’t blame on others, right? Well, it’s what most of people do. Blame someone else 
How funny this World is. Human stupidity has no end, said Albert Einstein.
Cheers…
Mayura recently posted…Add Descriptive Captions for Images and Photos in Blogger
Hi Mayura,
I agree with you. Its the action that matters. You’ll find lots of people telling you to play it safe. Don’t get them wrong, they want the best for you. But thing here is what do you want. I think taking your own decision is best. At least you have no one to blame if you fail.
Thank you.
Shorya Bist
Shorya Bist recently posted…What is the purpose of life?Are we programed?
Hi Shorya,
I believe most people don’t have the heart to deal with the uncertainty of being an employer. It is so much easier to just get a job and allow other people to find and give you work to do. I loved the Rich Dad, Poor Dad book btw.
Take Care.
Justin recently posted…Brain Evolution System Review
Hi Justine,
I think you are right. Being an employer requires both heart and patience and it is very sad to say but most of the people don’t have either of them.
Thank you.
Shorya Bist
Shorya Bist recently posted…Delhi gang rape -Youth Role Play
It’s a great idea to teach some of this in school. It is a skill to have, maybe that is the luxury of having privilege- you can think of this, or get to learn it. I had a dad who grew up poor but made himself rich- relatively. this is unusual. But partly he was cheap- knowing how to save is a big part of making money.
Jodi At Heal Now recently posted…Heal Now Through Compassion
Hi Shorya
A great post here. I know Robert Kiyosaki very well. In fact I was the CEO of the company that promoted him in Australia and New Zealand. We published Rich Dad Poor Dad here and Australia is where if first became a best seller.
I know the book backwards (almost) lol. It has helped so many people around the world change the way they see money.
I do agree with you though that not everyone can be an employer. That is why Robert does recommend employees do network marketing part time to get some business skills.
He is also a very skilled investors and suggests people learn these skills.
Have you read The Cashflow Quadrant? That is my favorite of his books and a must read if you have not read it as it expands on his concepts.
Great post thanks Shorya
Sue
Sue Price recently posted…Debunking the Myths of Empower Network