![]() It gets even worse if you work for yourself. If you do well at your job, if you claw your way up the ladder, what is your reward? A bigger increase in taxes due to moving into a higher income tax bracket. The scam gets even worse when you look at it long-term. If you’re an employee, your income is earned income, which is the highest taxed income. If you’re a professional investor or a business owner, the majority of your income is passive income, which is the lowest taxed income. This is because the tax code is built to reward entrepreneurs and investors who create jobs and grow the economy. And guess who isn’t paying a lot of taxes? The owner of the business you work for. The reason “get a good job” is a Rich Dad Scam is because being an employee actually makes you poorer, especially if you have a high paying job, because you pay the most in taxes. Rather than pay high taxes, he used the tax code to get rich. Rather than work for someone else, he worked for himself. ![]() My rich dad understood that the sentiment, “Get a good job,” was a scam. He never had a good job, and yet he was rich and successful. The simple formula he taught us for getting rich was, “ Four green houses, one red hotel.” Eventually he used this formula to buy his own hotel on the beach. He taught me and his son, my best friend, Mike, about money through the game of “Monopoly”. As a kid he had to drop out of school to help run his family store. My rich dad, on the other hand, never had a “real” job. We assured him, of course, that didn’t matter to us and we loved him, not what he could give us, but still it weighed heavy on him. Instead, he lamented that he didn’t have anything to leave us kids. In his later years, he never talked about his good job. He tried a few business ideas after that and eventually died with very little to his name. One financial emergency after another would drain his savings and he’d have to start all over again. On top of it all, he had no financial education, so he never learned how to invest properly to grow his money beyond his salary. ![]() He toiled away working for others, often getting raises only to keep up with the cost of living and paying a high percentage to the government in taxes. He was very proud of the good job he had earned through his hard work.īut, unfortunately, his job was one of the things that actually kept him from succeeding financially. He had multiple advanced degrees and he had worked his way up the government job ladder to become the superintendent of the Hawaii school system. Yet, he never got ahead financially.īy most standards, my poor dad was successful. To my poor dad, getting a good job was the most important thing in life. When I was young, my poor dad always told me that I needed to go to school so that I could get a good job. Today’s Rich Dad Scam is “Get a good Job.” “Go to school so you can get a good job!” ![]() The first Rich Dad Scam I wrote about was Higher Education. Those scams are what I’m writing about in a series called Rich Dad Scams, and to break away from them you usually need someone else to warn you that you’re being duped, to tell you that you’re being taken advantage of, and to tell you what you can do about it. Unfortunately, without those financial smarts, it can be very easy to be taken in by scams, especially the scams that the rich use to keep the poor in their place. But some scams are a lot harder to spot.įrom my rich dad, I learned financial smarts, which taught me how to spot scams-and how to not be taken in. Sometimes they are easy to see and call out, like spam emails that promise riches in exchange for your bank information. Lots of people ask, “How can I get a good job?” Few ask, how can I create good jobs. ![]()
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