RICH DAD POOR DAD FOR TEENS- THE SECRETS ABOUT MONEY-THAT YOU DON'T LEARN IN SCHOOL!", BY Robert Kiyosaki

Debt isn’t simply….debt?

We got bad debt and we got good debt guys. Actually, there isn’t really much to it when you think about it. They can be viewed just like with assets putting money in your pocket and liabilities sucking you dry.

An example of good debt may be the mortgage on your short term or long-term rental property, since someone else would be paying off your debt for you. Or even a student loan, seeing that you garnered enough information as well as made the right connections in classes and around campus that can give you a sweet return on your investment. Remember that it’s what you do with the opportunity gifted to you that makes the difference. Some persons have never paid back their student loan and some have, depends on the individual I guess.

An example of a bad debt would be a credit card bill you keep forgetting to pay. All of a sudden, the built-up interest is so high you don’t know where to start. if you even want to start. And guess what? No money is being placed in your pocket at all, unless you play the credit card game the right way (check one of the lines that stood out to me).

The chapter was really short so that’s all I got.

Some lines that stood out to me:

• ““If you want to be rich,” he would say, “you must know the difference between good debt and bad debt.””

• “I know that telling someone not to spend money can trigger a similar reaction.”

• “And if you do buy something on a credit card, make an effort to pay for it in full when the bill comes.”

• “Your financial future is in your hands!”

• “In fact, if you use a credit card wisely- that is, if you pay your bill on time- you’ll have an excellent opportunity to establish a good credit rating. That will help you later in life when you need to borrow money to buy assets that will bring you passive income (such as buying real estate, an income-producing asset).”

• “Often when I give speeches, I tell people that with each dollar bill that comes their way, they have the power to determine their destiny. You can too. Will you be rich or poor in your life?……The choice is yours- every day with every dollar you receive and every dollar you spend.”

The choice is yours. Choose wisely, rich or poor?