All About You — Day 26: Learn What You Need to Learn

Differences Between Job and Work

“Do you know the difference between your job and your work?” asked rich dad one day.

Rich dad shook his head and said, “If you want to be successful in life, you need to know the difference.”

“What’s the big deal?” asked Mike as he and I shrugged our shoulders and waited for the lesson we knew was coming, whether we wanted the lesson or not.

“What does your dad always say to you about getting a job?” asked rich dad.

Thinking for a moment, I replied, “He says things like go to school and work hard so you can get a good job.”

“Does he say, ‘Do your homework so you can get a good job?’”

“Yeah,” I replied. “He does say things like that.”

“So what is the difference between your job and your work?” asked rich dad again.

“I don’t know,” I replied. “It all sounds like work to me.”

“Oh, I get what you’re saying” said Mike. “A job is something I get paid for. I do not get paid for work such as my homework. Work is what I do to prepare me for my job.”

Rich dad nodded. “That’s it. That’s the difference between your work and your job. You get paid for a job but you do not get paid for doing your work.” Looking at me, he asked, “Do you get paid for doing yard work at home, or does your mom get paid for doing her housework?”

“No,” I replied. “Not in my family. I don’t even get an allowance.”

“Do you get paid to do your homework?” asked rich dad. “Does your dad give you money to read books?”

“No,” I replied a little sarcastically. “Are you saying that my homework is what prepares me for my job?”

“That is what I am saying” Rich dad smiled. “When it comes to money, the more homework you do, the more money you earn on your job. People who do not do their homework make less money, regardless if they are an employee or an entrepreneur.”

Thinking for a long while, I finally said, “So it is true that if I do not do my homework at school, I won’t get a high-paying job?’

“Yes, I would say that is true,” said rich dad “At least, if you don’t do your homework you will not become a medical doctor, accountant, or lawyer. If you are an employee, it’s tough to get promoted and earn more money if you don’t have a trained skill or a college degree.”

“And if we want to be entrepreneurs, we need to do a different type of homework?” I asked.

Rich dad nodded and said, “And many entrepreneurs quit their job without doing their homework. That is why so many small businesses fail or struggle financially.”

“So you’re having us do our homework to become entrepreneurs.”

Lots of Work but No Jobs

Thinking for a moment, I finally repeated what he said. “There is a lot of work but no jobs?” To me it was puzzling and I needed to think more about what he said.

“Why is that?” asked his son Mike.

“Well, one reason is that we are trained in school to look for jobs. If there are no jobs, people are out of work, even if there is a lot of work to do. When a factory closes or moves overseas, it usually leaves behind a lot of unemployed employees.”

Rich dad continued to explain, “Employees see no jobs so they do nothing. On the other hand, an entrepreneur sees a lot of opportunity. The entrepreneur knows that the jobs will come if the work is done.”

“So they need to be retrained. They need to do their homework,” I added. “That’s the work that needs to be done.”

“That is some of the work,” said rich dad. “Look … the point I am making is that too many people confuse work and job. Too many people expect to get their job training for free. Even if a person has a job, too many employees expect their employers to provide them with training and pay them at the same time.”

“They want the company to pay for their education?” I asked. Being a teenager and not having worked in a big company, the idea of expecting to be paid for training was strange to me.

“Many people also expect the government to provide them with job training for free,” added rich dad.

“And that is why you say they are poor people,” said Mike. “It’s more than financial, it is a poor attitude toward the value of education, training, and preparing oneself to have a skill people will pay for.”

Rich dad agreed. “I’ve seen employees attend training classes keeping one eye on their watch. At quitting time, they jump up and leave the class even if the instructor has not finished the lesson. Or I’ve seen employees who are outside, smoking and gossiping; or drinking in the bar and watching sports on TV; or flirting with other workers; rather than attending the class the employer is paying them to attend. That is why so many people do not get ahead in life financially. Too many won’t learn anything even if it is free or if they are paid to learn it. And this applies to both employees and entrepreneurs.”

Since I came from a family of government educators who believed in free education, I asked, “Would you explain a little further the relationship between work and jobs?”

Doctors Worked for Free

“Sure,” said rich dad. “Medical doctors spend a lot of money and a lot of time learning to be doctors before they get paid as a medical doctor. That is one reason why they earn more than most people.”

“The doctors did their homework before they get paid,” Mike added.

Professional Athletes Worked for Free

“They certainly did,” said rich dad. “But also look at great athletes who earn a lot of money. I do not know of a single great athlete who got paid for practicing his or her sport. Most professional athletes started young, practiced longer and harder than the average athlete. Most professional athletes practiced for years, many paid for lessons, and they put in long hours, long before they got paid. They had to do their homework before they got their jobs as pros.”

“That is why you don’t pay us,” I said softly. “We work for you for free.”

Rich dad smiled. “Even the Beatles worked for free before they became world famous and rich. Like the medical doctor or professional, they paid their dues. They did their homework. They did not ask for a guaranteed record contract, a steady paycheck, and medical benefits before they began practicing.”

“I’ve bought a lot of their records,” said Mike. “I’ve helped make them rich.”

“They made themselves rich,” said rich dad with a smile. “Doing your homework applies to more than just money. It also applies to your health. Many people are unhealthy because they do not work out.”

“They don’t exercise,” I said. “So they have poor health.”

“Notice the word poor?” asked rich dad. “Poor financially and poor in health. People who are lazy and lack discipline are often the people with the worst health and the worst wealth.”

“So we need to do our homework if we want to become entrepreneurs,” I summarized.

“That is why you boys have been working for me for free for all these years. You’ve been doing your homework to become entrepreneurs. If I were training you to be employees I would be paying you by the hour.”

“So that is why my dad, a government school teacher, got so angry when you had me work for you for free,” I added.

Chuckling and nodding again, rich dad said, “Your father thinks like an employee. That is why he thinks I should pay you. He does not understand working for free. He does not understand that you are receiving a priceless education. It’s just not the kind of education he values. The type of education an employee needs is different from the type of education an entrepreneur requires.”

“That is why he thinks you’re cheating us,” I added.