Rich Dad, Poor Dad, Zero Dad

I didn’t know until I was almost 30 years old.

That’s when I read “Rich Dad, Poor Dad” for the first time.

It blew my mind.

I had been stuck on the poverty hamster wheel my entire adult life to that point, scrapping and clawing my way through building a financial future. Despite meager hourly wages, my wife and I had managed to become debt free, and even began saving for retirement.

But it was Robert Kiyosaki that opened my eyes to new possibilities.

Lesson 1: Assets vs Liabilities

I, like most people, had thought assets meant “stored value”, but in the Rich Dad world an asset only produces cashflow.

That means a house, which many call “their biggest asset”, is NOT in fact an asset until you move out and rent it (or sell it for a big gain).

Assets produce cash. Liabilities lose cash.

Spend your focus, time, and energy stacking assets.

Lesson 2: Financial Independence

When I was making $20/hour and paying down debt, financial freedom wasn’t even a thought in my mind, much less a hope or dream. Never mind even a remote possibility.

To me, Financial Independence was for trust fund babies. Until I read Rich Dad.

Kiyosaki defines “Financial Independence” as “your assets producing $1 more than your liabilities spend.”

It’s that simple. And both of those levers are in your control.

Lesson 3: The Cashflow Quadrant

I had always thought of “self employment” as a step toward financial control, but he describes it as “owning a job”. Whereas business ownership is “owning a system”.

He uses this quadrant to explain:

The left side is all about trading time for dollars. The right side is about building assets that produce cashflow. Most people spend their time in E, some brave souls jump into S but get stuck. The few and the proud end up building B, but the bright side is that any one of those sectors (E, S, or B) can become an Investor at any time.

Rich dad? More like “Zero Dad”

I had the opportunity to share these 3 lessons with some teens that are in a program that is very near and dear to my heart.

They are high school teens in the foster care system, and they are due to “age out” of the system when they turn 18. These are kids whose families sold them out, picking drugs or crime over parenthood. 97% of kids who make it to age 14 in the foster care system will “age out”, meaning they don’t reconnect with their family, and nobody adopts them. Typically they end up homeless before finishing high school, given zero chances in life.

Direction61:3 is a program here in my area of the Dallas / Fort Worth metroplex in Texas. They help these kids bridge the gap from youth into adulthood, with housing, financial literacy, life skills, mentorship, transportation, and career path. If you are looking for a 501c3 that is making a huge impact in the lives of youth, this is it.

Will you join me in supporting these kids?

Every dollar counts 👉️ Direction613.org

P.S. – If you want to learn more about the program and organization, watch this: