Rich Dad was trying to teach the boys an important life lesson. He told them that most people fall into a trap:
They work hard all their lives for little money, believing their job gives them security. They live for small things like a short vacation each year or a small retirement check after decades of work.
He wasn't making fun of them - he actually cared. But he wanted the boys to see a bigger truth that most people miss. He wanted to open their eyes.
To test them, Rich Dad offered more and more money - first 25 cents, then $1, then $2, and finally $5 an hour. He wanted to see if they would give in to temptation.
At first, the boys were excited. The thought of making that kind of money made their hearts race. But eventually, they stayed quiet and refused. That’s when Rich Dad knew they were ready to learn.
He explained:
• Most people are controlled by fear (of not having money) and greed (the desire for more stuff).
• That fear pushes them to work hard, and the greed makes them spend their paycheck quickly.
• This creates a never-ending loop: Work - Get paid - Spend - Repeat.
• He called this the "Rat Race."
Rich Dad told them there is another way - a smarter path to freedom - but only a few people ever f ind it. The first step? Being honest with yourself and breaking free from the emotions that trap most people.
Rich dad explained that most people let their emotions control how they think, especially when it comes to money. The two strongest emotions are fear and desire. People feel afraid of not having money, so they go to work to earn it. Then, when they get paid, they feel happy and excited. That excitement leads to desire - they want more things, nicer things, better things. But soon after, the fear comes back again. So they go back to work. This cycle of fear and desire keeps repeating, and most people stay stuck in it their entire lives.
The problem is, they never stop to think about what's really happening. They just react to their emotions. Fear tells them to get a job. Desire pushes them to spend their money. And then fear returns, making them feel they need to earn more. It's like being on a hamster wheel - running in circles but never getting anywhere.
Rich dad said this is why most people don’t become wealthy. It’s not because they’re not smart or don’t work hard. It’s because they don’t learn how to control their emotions. Instead of using their brains to think clearly, they let fear and desire make decisions for them.
Even people who become rich can fall into this trap. They may have a lot of money, but they’re still afraid of losing it. Or they keep wanting more because they think it will make them happy. So even though they look successful, they’re still controlled by the same emotions.
Some people pretend that money doesn’t matter to them, but they still spend most of their lives working for it. That’s called denial - saying one thing but doing the opposite. Others spend recklessly when they feel excited, thinking that buying more things will make them feel better. But it never lasts.
Rich dad said the key to escaping this trap is learning about money. Schools teach people how to work for money, but they don’t teach how money actually works. As a result, most people become slaves to their jobs and their paychecks. They don’t realize that money is just an idea - not something to fear or chase blindly.
The first step to real freedom is becoming aware of your emotions. It’s okay to feel fear or desire, but don’t let those feelings control your choices. Instead, use your brain to think things through. Ask smart questions. Don’t just react. That’s how you stop being a slave to money - and start learning to make money work for you.
In this case, they didn’t get paid. They worked in a small store for free. Most people would’ve quit right there. But not them.
Instead, they listened to Rich Dad’s advice:
“Don’t depend on a paycheck. Use your brain. Work for free - and you’ll start seeing what others miss.”
So they watched. They paid attention. And one day, they noticed something odd: the store lady was cutting comic book covers off and throwing the rest in the trash.
They asked why.
She said, “I only need the cover to return for credit.”
That’s when the opportunity clicked.
They went to the distributor and asked if they could take the old comics. He agreed - as long as they didn’t sell them.
They set up a comic book library in a basement. Ten cents got kids two hours of unlimited reading. Mike’s sister ran it for a dollar a week.
They were making almost $10 a week - without ever selling a thing, and without even being there.
Eventually, a few troublemakers forced them to shut it down. But that didn’t matter. Because by then, they had already learned what most adults never figure out: Don’t work for money. Make money work for you.
Get ready to learn about financial literacy!
