What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Learning to Invest
My rich dad began preparing me for the I quadrant at the age of 
nine using the game of Monopoly
®
as a teaching tool. Over and over 
again, he would say, “One of the great formulas for wealth is found 
in the game of Monopoly. Always remember the formula: four green 
houses, one red hotel.”
The game of Monopoly is a game of cash flow. For example, if you 
had one green house on a property you owned and you received $10, 
that was $10 a month in cash flow. Two houses, $20. Three houses, 
$30. And the red hotel, $50. More green houses and more red hotels 
mean more cash flow, less work, less taxes, and more freedom.
A simple game, but an important lesson.
Rich dad played Monopoly in real life. He would often take his son 
and me to visit his green houses—green houses that would one day 
become a big red hotel, right on Waikiki Beach.
As I grew up and watched my rich dad play the game of Monopoly 
in real life, I learned many valuable lessons about investing. Some of 
those lessons are: 
• Investing is not risky.
• Investing is fun.
• Investing can make you very, very, rich.
• More importantly, investing can set you free, free from the
struggle of earning a living and worrying about money. 
In other words, if you were smart, you could build a pipeline of 
cash flow for life, a pipeline that would produce cash in good times 
and bad, in market booms and market crashes. Your cash flow would 
increase automatically with inflation and, at the same time, allow you 
to pay less in taxes.
I am not saying real estate is the only way to invest. I use the game 
of Monopoly simply as an example of how the rich get richer. A person 
can earn income from stocks via dividends, from bonds via interest, or 
from oil, books, and patents via royalties.
In other words, there are many ways to financial freedom.