Rich Dad Poor Dadneed greater financial intelligence to simply survive. The idea that “it takes
money to make money” is the thinking of financially unsophisticated
people. It does not mean that they’re not intelligent. They have simply not
learned the science of money making money.
Money is only an idea. If you want more money, simply change
your thinking. Every self-made person started small with an idea, and
then turned it into something big. The same applies to investing. It
takes only a few dollars to start and grow it into something big. I meet
so many people who spend their lives chasing the big deal, or trying to
amass a lot of money to get into a big deal, but to me that is foolish. Too
often I have seen unsophisticated investors put their large nest egg into
one deal and lose most of it rapidly. They may have been good workers,
but they were not good investors.
Education and wisdom about money are important. Start early.
Buy a book. Go to a seminar. Practice. Start small. I turned $5,000 cash
into a one-million-dollar asset producing $5,000 a month cash flow in
less than six years. But I started learning as a kid. I encourage you to
learn, because it’s not that hard. In fact, it’s pretty easy once you get the
hang of it.
I think I have made my message clear. It’s what is in your head that
determines what is in your hands. Money is only an idea. There is a
great book called Think and Grow Rich. The title is not Work Hard
and Grow Rich. Learn to have money work hard for you, and your
life will be easier and happier. Today, don’t play it safe. Play it smart.
The Three Incomes
In the world of accounting, there are three different types of income:- Ordinary earned
- Portfolio
- Passive