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Rich dad and I talked further about the price of being rich. He told me, "The price is different for different people."

Rich dad also said, "The only people who think life should be easy are lazy people."

Not being satisfied, I pressed on with my questioning. What did he mean by the price is different for different people. His reply was, "I would like to think that we all come into this world with unique gifts and talents... gifts and talents such as singing, painting, athletics, writing, parenting, preaching, teaching, and so on. But just because God gave us these talents, it is still up to each of us to develop those talents... and developing those talents is often the price. The world is filled with smart, talented, and gifted people who are not what we would call successful financially, professionally, or in their personal relationships. While each of us has gifts, each of us has personal challenges to overcome. No one is perfect. Each of us has gifts and challenges, strengths and weaknesses. That is why I say, the price is different for different people because each of us has different challenges. The only people who think life should be easy are lazy people."

I do not know if rich dad's statement about lazy people is true or not. I do know that his statement has been useful for me, whenever I found myself complaining about things not being easy, or things not going my way. When I find myself saying, "I wish things were easier," I know I am getting lazy. So whenever I find myself wishing things would be easier, I take a break, check my attitude, and ask myself about the long-term price of having that attitude. It's not that I don't look for an easier way to do things. I am simply aware of when I tend to be lazy, cheap, or when I act like a spoiled brat, and then I ask myself what the price might be for that behavior.

Money Is the Reward for Paying the Price

Rich dad would also say, "Ask anyone who is rich, famous, or successful, and I am sure they will tell you that they had and have personal challenges and demons to face every day along the way. Son, there is no free lunch. My challenge was that I had no education and no money when I started out. I also had a family to feed when my father died. I was thirteen years old when I was given that challenge... and there were even greater challenges to come. Yet, I managed to pay the price, and in the end, I achieved great wealth. In hindsight, money was my reward for paying the price."

The Price of Security

Over the years, rich dad made sure his son, Mike, and I were always aware of the price of something. When my dad, the man I call my poor dad, advised me to "Find a safe secure job," rich dad's reply was, "Remember, there is a price for security." When I asked him what the price was, he answered, "For most people, the price of security is personal freedom. And without freedom, many people spend their lives working for money, rather than living out their dreams. To me, to live life without achieving my dreams is much too high a price to pay for security." He also made his usual comment on taxes, by saying, "People who seek security over freedom pay more in taxes.

That is why people who have safe, secure jobs pay more in taxes than people who own the business that provides the jobs."

I spent a few days thinking about that comment, letting the magnitude of the idea sink in. The next time I saw rich dad, I asked him, "Do I have to choose between security or freedom? In other words, does that mean I can have one but not the other?"

Rich dad laughed after he realized how much thought I had given to his remark. "No," he replied, still chuckling. "You don't have to have one or the other. You can have both."

"You mean I can have both security and freedom?" I asked. "Sure," he said. "I have both."

"So why did you say that for most people, the price of security is personal freedom?" I asked. "How can you have both when you say most people can have only one. What's the difference?"

"The price," said rich dad. "I've always said to you that everything has a price. Most people are willing to pay the price for security, but they are not willing to pay the price for freedom. That is why most people have only one of the two. They only have one or the other."

"And why do you have both security and freedom?" Mike asked. He had just entered the room and had heard only part of the conversation.

"Because I paid twice the price," said rich dad. "I was willing to pay the price for both security and freedom. It's no different than having two cars. Let's say I need a truck but I also want a sports car. If I want both, I pay twice the price. Most people go through life paying for one or the other, but not both." "We pay a price even if we don't pay the price," rich dad continued. "So there is a price for security and there is a price for freedom. And you paid the price for both." I repeated what rich dad had just said, so I could let the idea sink into my head.

Rich dad nodded his head. "Yes, but let me add one more point of clarity about my being willing to pay the price to have both. You see we all pay a price anyway. We pay a price even if we don't pay the price."

"What?" I replied, frowning and shaking my head. Rich dad now seemed to be speaking in circles.

"Let me explain," said rich dad, gesturing with his hands that we should calm down. "Do you remember when I helped the two of you with your science homework a few weeks ago? You were studying Newton's laws?"

Mike and I nodded.

"Do you remember the law of for every action there is an equal and opposite reaction?"

Again we nodded. "That is how a jet flies through the air," said Mike. "The engine propels hot air backward and the jet moves forward."

"That's right," said rich dad. "Since Newton's laws are universal laws, they apply to everything, not only jet engines." Rich dad looked at the two of us to see if we were following what he had just said. "Everything." He again repeated just to make sure we understood.

"Okay, everything," said Mike, a little frustrated at the repetition. Suspecting that we were not really getting his point about everything, rich dad continued, "By everything I mean everything," he continued on. "Do you recall my lessons about financial statements? Do you remember my explaining that for there to be an expense, there must be income somewhere else?"

Now I was beginning to understand what he meant by "everything." Newton's universal laws also applied to financial statements. "So for every asset, there has to be a liability." I added just to let him know that I was beginning to follow his thinking: "A universal law applies to everything."

Copyright © 2003 by Robert T. Kiyosaki and Sharon L. Lechter

Tags: Personal Finance

About the Author

Robert Kiyosaki a financier, author and teacher says "that the main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money... but never learn to have money work for them."

About the Author

Co-author of the Rich Dad series of books and CEO of the Rich Dad Organization, Sharon Lechter has dedicated her professional efforts tot he field of education. She graduated with honors from Florida State University with a degree in accounting, then joined the ranks of Coopers & Lybrand, a Big Eight accounting firm. Sharon held various management positions with computer, insurance, and publishing companies while maintaining her professional credentials as a CPA.