Many of us today lack basic financial education. We rely heavily on our bankers and our financial advisors which may not always be the best thing to do. We have today different fields and methods of earning. We have the Employees, the Self-employed, big business owners and professional Investors.
Now there’s a difference. Most of us are passive investors. If you have a retirement plan, that’s a passive form of investment. This is Rich dad versus Poor dad. It starts with financial literacy. Financial Literacy means knowing the words or the numbers
The two main words to learn about are Assets and Liabilities. So the reason most people struggle financially is they buy a house or a car thinking it’s an asset when it’s really a liability.
When I have a business, my business is an asset. And this is yet another reason I like real estate – because I use debt, other people’s money.
It’s how best you can utilize it is what will make you rich, not your college degree. Today I own almost 5000 houses and about 4 hotels and every year I add more and the more I add, the more debt I accrue and the less tax I pay. That’s the game. It takes skill sets and practice to do that.
– Robert Kiyosaki