"And when stock prices go up, people like me, the shareholders, get richer. That is what I mean by a different set of rules. Employees lose; owners and investors win."
"There is a difference between being poor and being broke. - Broke is temporary, and poor is eternal."
Money comes and goes, but if you have the education about how money works, you gain power over it and can begin building wealth. The reason positive thinking alone does not work is because most people went to school and never learned how money works, so they spend their lives working for money.
"Life pushes all of us around. Some give up. Others fight. A few learn the lesson and move on. They welcome life pushing them around. To these few people, it means they need and want to learn something. They learn and move on. Most quit, and a few like you fight."
"And that's exactly what most people do. They quit and go looking for another job, better opportunity, and higher pay, actually thinking that a new job or more pay will solve the problem. In most cases, it won't."
Just know that it's fear that keeps most people working at a job. The fear of not paying their bills. The fear of being fired. The fear of not having enough money. The fear of starting over. That's the price of studying to learn a profession or trade, and then working for money. Most people become a slave to money... and then get angry at their boss."
It is perfectly normal to desire something better, prettier, more fun or exciting. So people also work for money because of desire. They desire money for the joy they think it can buy. But the joy that money brings is often short lived, and they soon need more money for more joy, more pleasure, more comfort, more security. So they keep working, thinking money will soothe their souls that is troubled by fear and desire. But money cannot do that."
If your pattern is to spend everything you get, most likely an increase in cash will just result in an increase in spending. I'd rather be welcoming change than dreading change. I'd rather be excited about making millions than worrying about not getting a raise.
"You can't teach an old dog new tricks." Unless a person is used to changing, it's hard to change.
He constantly told Mike and me that the greatest reason for lack of financial success was because most people played it too safe.
"People are so afraid of losing that they lose" were his words.
Failure inspires winners. And failure defeats losers. It is the biggest secret of winners.
"Your dad pays everyone else first. He pays himself last, but only if he has anything left over."
"I firmly believe in paying my bills on time. I just pay myself first. Before I pay even the government." "But what happens if you don't have enough money?" I asked. "What do you do then?" "The same," said rich dad. "I still pay myself first. Even if I'm short of money. My asset column is far more important to me than the government."
No. 1 in paying yourself first is don't get into debt in the first place. Although I pay my bills last, I set it up to have only small unimportant bills, that I will have to pay.
Don't get into large debt positions that you have to pay for. Keep your expenses low. Build up assets first. Then, buy the big house or nice car. Being stuck in the rat race is not intelligent.
The rule does not encourage self-sacrifice or financial abstinence. It doesn't mean pay yourself first and starve. Life was meant to be enjoyed. If you call on your financial genius, you can have all the goodies of life, get rich and pay bills, without sacrificing the good life. And that is financial intelligence.
Too often today, we focus to borrowing money to get the things we want instead of focusing on creating money. One is easier in the short term, but harder in the long term. It's a bad habit that we as individuals and as a nation have gotten into. Remember, the easy road often becomes hard, and the hard road often becomes easy.