let's look at Robert Kiyosaki he had two dads his real dad and his friends dad his real dad had a PhD and the other didn't even finish high school his real dad would say things like I can't afford it and the other would say how can I afford it they both supported education but one focused on studying a career and the other focused on studying money one of them died struggling financially and the other died as one of the richest men in Hawaii Kiyosaki decided to learn from his friends dad instead of his own dad this is important to know because we can do what Kiyosaki did and learn from other people then know this subject very well have you ever heard people say oh I wish I had more money I'm quitting this job they pay here sucks I need to get a second job because I need more money and I'm sure all of us can relate but the problem here is that it really doesn't matter how much money we're making if we don't even understand it let me ask you something what is the first thing you would do if you got a pay raise in your job - $10,000 a month starting today would you buy a new car a new house take a trip to Vegas to celebrate this is actually the reaction most people have they make more money so they spend more now I'm sure you're starting to understand that money alone doesn't make you rich the biggest thing to learn is the difference between an asset and a liability we are going to define them in very simple terms an asset is something that brings money to your pocket a liability is something that takes money away from your pocket just about anything can be an asset or a liability if you own a house and it takes money out of your pocket it's a liability but if you rent out that house and it makes you money then it's an asset the difference between the poor the middle class and the rich is that the poor have expenses and I don't mean living expenses I mean just spending money on stuff the middle class by liabilities that they think are assets I'm sure you've heard people say that their home is the largest investment so they think as an asset but yet there's so-called asset cost its owner's at least a couple of thousand a month the rich spend their time and money getting assets which brings more money they use that money to buy more assets which brings more money and buy more assets that's why the rich get richer and the poor middle class stay the same and it really doesn't matter how much money you're making if you have a job and make ten thousand dollars a month and you buy cars and expensive wine bottles and in timeshares and Vegas and spend all of your money at the end of the month you have a poor person mentality the same goes if you have a $2,000 a month income you spend only 1,500 and the rest you use to buy assets eventually those assets will bring you more money to buy more assets and yes if you keep doing this you won't be needing your job anymore assets can be things like real estate businesses paper assets such as stock and bonds books you've written or products you've created a lot of people are gonna say well what if what if I lose my money building like a product or a business and it's a valid point there is risk to be taken but they don't say the same thing when they go and buy their big-ass flat-screen TVs or a new car or even all the money they spend on buying junk food see I'll rather spend my money creating something that I'm passionate about and it has the potential of becoming an asset then on stuff that I don't need and even if I lose my money the experience and knowledge I get from building those things it's incredibly valuable much more valuable than sitting on the couch keeping up with the kardashians let me give you a little tax history you know the Robin Hood story right the guy that takes from the rich and gives to the poor yeah that guy well a long time ago in England in America there were no taxes the government would only collect taxes to pay for wars like the Civil War or the fight against Napoleon then the government decided to establish permanent taxes what you didn't know was that the government told the people that taxes will only punish the rich to be able to help out the poor so everyone captivated by the Robin Hood ideal voted for this law and it became constitutionally legal but the government's appetite for money grew so much they started taxing everyone including the middle class and the poor and the rich well they were too smart for this they found loopholes to keep their hard-earned money this is why Warren Buffett is so proud to say that his tax rate is lower than his Secretary's tax rate corporations when you hear the word corporation you might imagine big buildings and all that but in reality all a corporation is is just a folder full of papers yeah a folder full of papers that allows the company to make all of the expenses first then get taxed on whatever is left that means that you can spend all of the money you can then at the end you just say all right tax me on whatever is left and that is why the poor and middle class pays so much more in taxes than the bridge to learn from people that know this subject well work to acquire assets and limit liabilities learn to keep most of your money you
