ddenly； as Mrs。 Martin was saying goodbye to Mike and me； I saw something she was doing that I had never seen her do before。 I mean； I had seen her do it； but I never took notice of it。
Mrs。 Martin was cutting the front page of the ic book in half。 She was keeping the top half of the ic book cover and throwing the rest of the ic book into a large brown cardboard box。 When I asked her what she did with the ic books； she said； 〃I throw them away。 I give the top half of the cover back to the ic…book distributor for credit when he brings in the new ics。 He's ing in an hour。〃
Mike and I waited for an hour。 Soon the distributor arrived and I asked him if we could have the ic books。 To which he replied； 〃You can have them if you work for this store and do not resell them。〃
Our partnership was revived。 Mike's mom had a spare room in the basement that no one used。 We cleaned it out； and began piling hundreds of ic books in that room。 Soon our ic…book library was open to the public。 We hired Mike's younger sister； who loved to study； to be head librarian。 She charged each child 10 cents admission to the library； which was open from 2：30 to 4：30 p。m。 every day after school。 The customers； the children of the neighborhood； could read as many ics as they could in two hours。 It was a bargain for them since a ic costs 10 cents each； and they could read five or six in two hours。
Mike's sister would check the kids as they left； to make sure they weren't borrowing any ic books。 She also kept the books； logging in how many kids showed up each day； who they were； and any ments they might have。 Mike and I averaged 9。50 per week over a threemonth period。 We paid his sister 1 a week and allowed her to read the ics for free； which she rarely did since she was always studying。
Mike and F kept our agreement by working in the store every Saturday and collecting all the ic books from the different stores。 We kept our agreement to the distributor by not selling any ic books。 We burned them once they got too tattered。 We tried opening a branch office； but we could never quite find someone as dedicated as Mike's sister we could trust。
At an early age； we found out how hard it was to find good staff。
Three months after the library first opened； a fight broke out in the room。 Some bullies from another neighborhood pushed their way in and started it。 Mike's dad suggested we shut down the business。 So our ic…book business shut down； and we stopped working on Saturdays at the convenience store。 Anyway； rich dad was excited because he had new things he wanted to teach us。 He was happy because we had learned our first lesson so well。 We had learned to have money work for us。 By not getting paid for our work at the store； we were forced to use our imaginations to identify an opportunity to make money。 By starting our own business； the ic…book library； we were in control of our own finances； not dependent on an employer。 The best part was that our business generated money for us； even when we weren't physically there。 Our money worked for us。 Instead of paying us money； rich dad had given us so much more。
CHAPTER THREE
Lesson Two：Why Teach Financial Literacy？
In 1990； my best friend； Mike； took over his father's empire and is； in fact； doing a better job than his dad did。 We see each other once or twice a year on the golf course。 He and his wife are wealthier than you could imagine。 Rich dad's empire is in great hands； and Mike is now grooming his son to take his place； as his dad had groomed us。
In 1994； I retired at the age of 47； and my wife； Kim； was 37。 Retirement does not mean not working。 To my wife and me； it means that barring unforeseen cataclysmic changes； we can work or not work； and our wealth grows automatically； staying way ahead of inflation。 I guess it means freedom。 The assets are large enough to grow by themselves。 It's like planting a tree。 You water it for years and then one day it doesn't need you anymore。 It's roots have gone down deep enough。 Then； the tree provides shade for your enjoyment。
Mike chose to run the empire and I chose to retire。
Whenever I speak to groups of people； they often ask what I would remend or what could they do？ 〃How do they get started？〃 〃Is there a good book I would remend？〃 〃What should they do to prepare their children？〃 〃What is the secret to success？〃 〃How do I make millions？〃 I am always reminded of this article I was once given。 It goes as follows。
THE RICHEST BUSINESSMEN
In 1923 a group of our greatest leaders and richest businessmen held a meeting at the Edgewater Beach hotel in Chicago。 Among them were Charles Schwab； head of the largest independent steel pany； Samuel Instill； president of the world's largest utility； Howard Hopson； head of the largest gas pany； Ivar Kreuger president of the International Match Co。； one of the world's largest panies at that time； Leon Frazier； president of the Bank of International Settlements； Richard Whitney； president of the New York Stock Exchange； Arthur Cotton and Jesse Livermore； two of the biggest stock speculators； and Albert Fall； a member of President Harding's cabinet。 Twenty five years later nine of them （those listed above） ended as follows。 Schwab died penniless after living for five years on borrowed money。 Instill died broke living in a foreign land。 Kreuger and Cotton also died broke。 Hopson went insane。 Whitney and Albert Fall were just released from prison。 Fraser and Livermore mitted suicide。
I doubt if anyone can say what really happened to these men。 If you look at the date； 1923； it was just before the 1929 market crash and the Great Depression； which I suspect had a great impact on these men and their lives。 The point is this： Today we live in times of greater and faster change than these men did。 I suspect there will be many booms and busts in the next 25 years that will parallel the ups and downs these men faced。 I am concerned that too many people are focused too much on money and not their greatest wealth； which is their education。 If people are prepared to be flexible； keep an open mind and learn； they will grow richer and richer through the changes。 If they think money will solve problems； I am afraid those people will have a rough ride。 Intelligence solves problems and produces money。 Money without financial intelligence is money soon gone。
Most people fail to realize that in life； it's not how much money you make； it's how much money you keep。 We have all heard stories of lottery winners who are poor； then suddenly rich； then poor again。 They win millions and are soon back to where they started。 Or stories of professional athletes； who； at the age of 24； are earning millions of dollars a year； and are sleeping under a bridge by age 34。 In the paper this morning； as I write this； there is a story of a young basketball player who a year ago had millions。 Today； he claims his friends； attorney and accountant took his money； and now he works at a car wash for minimum wage。
He is only 29。 He was fired from the car wash because he refused to take off his championship ring as he was wiping off the cars； so his story made the newspaper。 He is appealing his termination； claiming hardship and discrimination and that the ring is all he has left。 He claims that if you take that away； he'll crumble。
In 1997； I know so many people who are being instant millionaires。 It's the Roaring '20s one more time。 And while I am glad people have been getting richer and richer； I only caution that in the long run； it's not how much you make； it's how much you keep； and how many generations you keep it。
So when people ask； 〃Where do I get started？〃 or 〃Tell me how to get rich quick；〃 they often are greatly disappointed with my answer。 I simply say to them what my rich dad said back to me when I was a little kid。 〃If you want to be rich； you need to be financially literate。〃
That idea was drummed into my head every time we were together。 As I said； my educated dad stressed the importance of reading books； while my rich dad stressed the need to master financial literacy。
If you are going to build the Empire State Building； the first thing you need to do is dig a deep hole and pour a strong foundation。 If you are going to build a home in the suburbs； all you need to do is pour a 6…inch slab of concrete。 Most people； in their drive to get rich； are trying to build an Empire State Building on a 6…inch slab。
Our school system； having been created in the Agrarian Age； still believes in homes with no foundation。 Dirt floors are still the rage。 So kids graduate from school with virtually no financial foundation。 One day； sleepless and deep in debt in suburbia； living the American Dream； they decide that the answer to their financial problems is to find a way to get rich quick。
Construction on the skyscraper begins。 It goes up quickly； and soon； instead of the Empire State Building； we have the Leaning Tower of Suburbia。 The sleepless nights return。
As for Mike and me in our adult years； both of our choices were possible because we were taught to pour a strong financial foundation when we were just kids。
Now； accounting is possibly the most boring subject in the world。 It also could be the most confusing。 But if you want to be rich；