Unfair Advantage #3 DEBT

What Schools Will Never Teach You About Money By Robert T. Kiyosaki ™ If you purchase this book without a cover, or purchase a PDF, jpg, or tiff copy of this book, it is likely stolen property or a counterfeit. In that case, neither the authors, the publisher, nor any of their employees or agents has received any payment for the copy. Furthermore, counterfeiting is a known avenue of financial support for organized crime and terrorist groups. We urge you to please not purchase any such copy and to report any instance of someone selling such copies to Plata Publishing LLC. This book is dedicated to those who step up This publication is designed to provide competent and reliable information regarding the and become part of the solution. subject matter covered. However, it is sold with the understanding that the author and publisher are not engaged in rendering legal, financial, or other professional advice. Laws and practices often vary from state to state and country to country and if legal or other expert assistance is required, the services of a professional should be sought. The author and publisher specifically disclaim any liability that is incurred from the use or application of the contents of this book. Copyright © 2012 by Robert T. Kiyosaki. All rights reserved. Except as permitted under the U.S. Copyright Act of 1976, no part of this publication may be reproduced, distributed, or transmitted in any form or by any means or stored in a database or retrieval system, without the prior written permission of the publisher. Published by Plata Publishing, LLC CASHFLOW, Rich Dad, Rich Dad Advisors, ESBI, and B-I Triangle are registered trademarks of CASHFLOW Technologies, Inc. E B are registered trademarks of S I CASHFLOW Technologies, Inc. Plata Publishing, LLC 4330 N. Civic Center Plaza Suite 100 Scottsdale, AZ 85251 (480) 998-6971 Visit our websites: PlataPublishing.com and RichDad.com Printed in the United States of America 122012 First Edition: March 2011 ISBN: 978-1-61268-010-1 Best-selling Books by Robert T. Kiyosaki Contents Rich Dad Poor Dad What the Rich Teach Their Kids About Money – That the Poor and Middle Class Do Not Introduction ...............................................................................................1 Rich Dad’s CASHFLOW Quadrant Guide to Financial Freedom Chapter One Unfair Advantage #1: Knowledge ...............................................................23 Rich Dad’s Guide to Investing What the Rich Invest in That the Poor and Middle Class Do Not Chapter Two Rich Dad’s Rich Kid Smart Kid Unfair Advantage #2: Taxes ........................................................................57 Give Your Child a Financial Head Start Rich Dad’s Retire Young Retire Rich Chapter Three How to Get Rich and Stay Rich Unfair Advantage #3: Debt ........................................................................87 Rich Dad’s Prophecy Why the Biggest Stock Market Crash in History Is Still Coming... Chapter Four And How You Can Prepare Yourself and Profit from It! Unfair Advantage #4: Risk........................................................................117 Rich Dad’s Success Stories Real-Life Success Stories from Real-Life People Chapter Five Who Followed the Rich Dad Lessons Unfair Advantage #5: Compensation ........................................................165 Rich Dad’s Guide to Becoming Rich Without Cutting Up Your Credit Cards Conclusion Turn Bad Debt into Good Debt A Case for Capitalism ...............................................................................189 Rich Dad’s Who Took My Money? Why Slow Investors Lose and Fast Money Wins! An Unfair ROI ........................................................................................199 Rich Dad Poor Dad for Teens The Secrets About Money – That You Don’t Learn In School! Afterword ................................................................................................203 Escape the Rat Race Learn How Money Works and Become a Rich Kid Special Section Rich Dad’s Before You Quit Your Job The Times They Are A-Changin’ ..............................................................207 Ten Real-Life Lessons Every Entrepreneur Should Know About Building a Multimillion-Dollar Business The Five Levels of Investors ......................................................................209 Rich Dad’s Increase Your Financial IQ Get Smarter with Your Money Bonus FAQs .............................................................................................231 Conspiracy of the Rich The 8 New Rules of Money A Final Thought on Education ................................................................269 Unfair Advantage The Power of Financial Education A Message from Robert It’s Not Cool I thought long and hard about sharing with you our financial success, especially during times like these. I know that millions of people have lost their jobs, their homes, and their businesses. I also know that, in most situations, it is not polite to talk about financial success. Bragging is never cool, especially about money. Yet, I decided to write about real-life investments. I want you to understand how we gained our financial education, how we use that education, and why it is an unfair advantage, especially in a declining economy. I write not to brag. I write to encourage people to learn, study, practice, and possibly see the world differently. In 2011, there is a lot of money in the world. There are trillions of dollars looking for a home because governments of the world are printing trillions in counterfeit money, aka fiat currency. Governments do not want the world to go into a depression, so they print more funny money. This is why the price of gold and silver go up and why savers are losers. The problem is that this phony money is in the hands of only a few people. So, the rich get richer, the poor and middle class grow poorer, the economy worsens, and the problem grows bigger. According to the U.S. Census Bureau, poverty in America increased to nearly 15 percent of the population in September 2010. This means over 4 million people moved from the middle class into poverty, just as Donald Trump and I predicted in our book Why We Want You To Be Rich. This is dangerous. This is not healthy. At the risk of sounding like a braggart, I decided to write this book about real-life investments. I believe it is uncool to know something and not share what I know. That would be greedy. I write because I believe we need real financial education before the world economy can truly recover. Ultimately, I write because I believe it is better to teach people to fish than to give people fish. Robert Kiyosaki Introduction HOW DO YOU CATCH A MONKEY? Natives of Africa and Asia have used this technique to catch monkeys for thousands of years: The hunter finds a tree with a small hole in the tree trunk and places fruits or nuts inside the hole. A My rich dad said, monkey comes along, puts their fist in the hole and grabs onto the “Choose your teachers wisely.” fruit or the nuts. The monkey’s fist, now clenched and filled with the fruit or nuts, cannot be withdrawn from the hole, trapping the monkey. Rather than let go of the fruits or nuts, the monkey twists and turns, pulls and tugs, but refuses to let go. The native returns, and at their leisure, kills or captures the monkey. Humans are similar to monkeys. Rather than cling to fruits or nuts, humans cling to job security, their possessions, and money. Due to a lack of financial education, like the trapped monkey, most people will spend their lives as wage slaves of their employers and tax slaves of the government. When the global financial crisis began in 2007, many people clung even more tightly to their jobs in the hope of not being one of those who were laid off. Millions held on tightly to their homes, even though they could not pay the mortgage. Most cut back on their spending and saved more, even though the federal government was printing trillions of dollars, destroying the purchasing power of their savings. Workers stuffed even more money into their retirement plans, even though the stock market had crashed, wiping out their prior gains. And school enrollments boomed, as more people headed back to school, even though unemployment was soaring. 1 Introduction Unfair Advantage Most People Do Not Know What to Do Financial education was not important in the Industrial Age. By 2010, most people knew there was a global financial crisis. In 1989 the World Wide Web was born. The Industrial Age Unfortunately, most people do not know what to do about it. Rather ended and the Information Age began. than let go, most people clench their fists tighter and wait for the crisis to pass, praying that their political leaders can solve this global In the coming decade, more jobs will be replaced by technology crisis and that happy days will return. as our factories are dismantled, shipped, and rebuilt in low-wage A few know they must make changes. Yet without a strong countries. The idea of a high-paying job for life and a retirement financial education, they do not know what to do or how to change. paycheck for life is an obsolete idea. Today, the United States is the biggest debtor nation in world A Decade of Crisis history. The United States cannot afford social programs such as The problem is that the coming decade, the years from 2010 Social Security and Medicare. to 2020, will prove to be the most volatile world-changing decade In the Information Age, the age where job security and a pension in world history. for life are not guaranteed, financial education is essential. Unfortunately, the people clinging to the relics of the past— relics such as job security, savings, a home, and a retirement plan— Unfortunately, like a monkey with its fist caught in a tree, millions will be those who are most ravaged by the global financial storm of workers cling to Industrial-Age ideas such as going to school, approaching. I can make this statement with certainty for the job security, steady paychecks, medical benefits, early retirement, following five reasons: and government support for life.

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