{"id":11103,"date":"2020-07-23T10:35:00","date_gmt":"2020-07-23T14:35:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=11103"},"modified":"2020-07-27T17:42:49","modified_gmt":"2020-07-27T21:42:49","slug":"rich-dad-poor-chapter-1","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/rich-dad-poor-chapter-1\/","title":{"rendered":"Rich Dad, Poor Dad Chapter 1: The Rich Don’t Work"},"content":{"rendered":"\n

What is Rich Dad, Poor Dad<\/em> chapter 1 about? What is this lesson, and what can it teach you?<\/p>\n\n\n\n

Rich Dad, Poor Dad<\/em> chapter 1 goes over the ways that you can make money work for you, and learn to stress less over financial security. In Rich Dad, Poor Dad<\/em> chapter 1, you’ll learn about how cashflow works and how you can make it work for you. <\/p>\n\n\n\n\n\n\n\n

Rich Dad, Poor Dad Chapter 1: The Rich Don\u2019t Work For Money – Money Works for Them<\/strong><\/h2>\n\n\n\n

With the narrative over, the rest of the book covers Robert Kiyosaki\u2019s major lessons from Rich Dad in Rich Dad, Poor Dad<\/em> chapter one. You’ll find the major lessons and themes in this Rich Dad, Poor Dad<\/em> chapter 1 summary. <\/p>\n\n\n\n

Most people work 40+ hours a week to earn salaries. Many then take their earnings to 1) buy stuff they think will make them happy (but this is short-lived), 2) save the remainder in a conservative way. <\/p>\n\n\n\n

While this ensures some degree of stability, it doesn\u2019t make you rich. And working to earn a pension makes you financially dependent – let alone the risk that pensions won\u2019t be funded decades from now, when you need it.<\/p>\n\n\n\n

The counter-intuitive lesson here is this: the rich don\u2019t get rich merely by being paid higher salaries <\/strong>(though this is a great help). They get rich so by owning things<\/strong>. No one on the Forbes billionaire list got there purely with a salary.<\/p>\n\n\n\n

(As tech investor Sam Altman says<\/a>, \u201cYou get truly rich by owning things that increase rapidly in value. This can be a piece of a business, real estate, natural resource, intellectual property, or other similar things. But somehow or other, you need to own equity in something, instead of just selling your time. Time only scales linearly.<\/strong>\u201d)
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When you work for an employer, you get paid only a fraction of the value that you generate for the employer (otherwise, if the business would go bankrupt). Say your salary is $50k a year. Your work may allow your employer to earn $100k in sales that year, yielding a clean profit after deducting your salary. <\/p>\n\n\n\n