Rule One. You must know the difference between an asset and a liability, and buy assets. An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket.

When I was young, many people worked for a company with a pension plan that covered them for as long as they lived. If they didn't have a pension plan, they could count on Social Security and Medicare.

The subprime disaster was a result of financial bombs - derivatives - exploding in financial institutions such as AIG and Lehman Brothers, as well as banks and financial institutions throughout the world.

One of the things I didn't like about school is that every time they told a story about a rich guy in school, he was an evil guy. Our school system is programming us to think the rich are greedy and evil.

Most businesses think that product is the most important thing, but without great leadership, mission and a team that deliver results at a high level, even the best product won't make a company successful.

The primary reason I'm in real estate, oil, gold, and silver is because the U.S. dollar has become the peso the world. It's becoming more and more worthless as the U.S. is the world's biggest debtor nation.

If you are the kind of person who is waiting for the 'right' thing to happen, you might wait for a long time. It's like waiting for all the traffic lights to be green for five miles before starting the trip.

Bad debt is debt that makes you poorer. I count the mortgage on my home as bad debt, because I'm the one paying on it. Other forms of bad debt are car payments, credit card balances, or other consumer loans.

Most people never get wealthy simply because they are not trained financially to recognize opportunities right in front of them. The rich have learned to recognize opportunities as well as how to create them

An example of good debt is the debt on the apartment houses I own. That debt is good only as long as there are tenants to pay my mortgages. If tenants stop paying their rent, my good debt turns into bad debt.

When you diversify your mutual funds, you are diversifying something that is already diversified. Diversifying mutual funds is like taking high octane gasoline & adding water & then adding orange juice to it.

When I watch professional football, I love listening to John Madden because I know he knows what he's talking about. He's been both down in the trenches and in front of the bench as a coach. He knows the game.

In order to sustain the integrity of the organization, a business must dedicate time and resources to education, leadership development, and personnel development. Don't focus on the product. Focus on the team.

In my opinion, the United States and many Western nations have a financial disaster coming, caused by our educational system’s failure to adequately provide a realistic financial education program for students.

You have a choice in life. Would you rather be lonely or miserable? I would rather be lonely. A lot of people are miserable in a marriage and they don't get along with their wife or husband and it's not worth it.

The richest people in the world build networks. Everyone else is trained to look for work, that's why there are two types of people today. Those who build their own dreams and those who build someone else dreams.

Most of us are aware of the sacrificial slaughter of Bear Sterns. Some people call it a bailout, but I call it a handout - a government handout to some of the richest people on Earth, paid for by American taxpayers.

If you look at any successful person, at the start they were not balanced, balanced people go nowhere. They stay in one spot. To make progress you must first go unbalanced. Just look at how you make progress walking

Ephemeralization means the ability to do everything with nothing, or leverage, or doing more with less. So, as a businessman, I'm constantly ephemeralizing, figuring out how I can do more and more for less and less.

My partner Donald Trump says that married couples should always have a prenuptial agreement. True, a prenuptial is important if one partner is much richer than the other before marriage, but Kim and I don't have one.

John D. Rockefeller apparently became more of a tightwad the richer he got. I don't know if it is true, but one story I read was about one of his sons having to wear his older sister's clothes in order to save money.

The main reason people struggle financially is because they have spent years in school but learned nothing about money. The result is that people learn to work for money...but never learn to have money work for them.

Rather than risk starting their own businesses, most people seek safer environments, preferring job security to freedom and a steady paycheck to greater wealth. Their fear of failing is greater than the joy of freedom.

If you want to change who you are, begin by changing the size of your dream. Even if you are broke, it does not cost you anything to dream of being rich. Many poor people are poor because they have given up on dreaming.

I am very concerned about the millions of baby boomers who are counting on the stock market to deliver them a safe, sound, long retirement. I am afraid the baby boomers who are counting on the stock market are in trouble.

I resigned from the Marine Corps and flying in 1974, even though I loved them both. I quit because I no longer wanted to fight for peace. Instead, I believe we can build a more sustainable peace by working for prosperity.

People, who live below their means, save for a rainy day - the price is a cheap life. There are a lot of people who have a lot of money; but at the end of the process, they are still cheap; so they have made money their God.

There are three sides to every coin (Heads, Tails, and The Edge). Your ability to understand contrasting points of view and your ability to glean what information you believe to be valuable from each side is a crucial skill.

The primary reason people seek job security is because that is what they are taught to seek, at home and at school..then with debt loads, they must cling even tighter to a job, or professional security, just to pay the bills.

Typically the person who raises the money, or puts up the money to start the business, owns the lion's share of the business. So learn how to sell and keep learning. It will usually be your own fear that you have to overcome.

Changing quadrants is often a change at the core of who you are, how you think, and how you look at the world. The change is easier for some people than for others simply because some people welcome change and others fight it.

During the Enron debacle, it was workers who took the pounding, not bankers. Not only did Enron employees lose their jobs, many lost their retirement savings. That's because they were at the bottom of the investing food chain.

I've had all six of my books reach the New York Times bestseller list, which is especially rewarding seeing as I flunked out of high school twice because I couldn't write. It just goes to show you that we learn from our mistakes.

A network marketing business is based upon the leaders pulling people up, while a traditional corporate or government business is based upon only promoting a few and keeping the masses of employees content with a steady paycheck.

If you want to be rich, be friends with people who have the same mindset as you, or who at least won't try to change your mindset to be more like theirs. Life is too short to spend time with people who don't help you move forward.

The minute a Wall Street firm purchases your debt, your bank no longer has it on its financial statement, which then allows the bank to look for more credit card customers. That's one reason why you get so many credit card offers.

Failure inspires winners. And failure defeats losers. It is the biggest secret of winners. It's the secret that loser do not know. The greatest secret of winners is that failure inspires winning; thus, they're not afraid of losing.

If you don't like the idea that most of the money spent on lottery tickets supports government programs, you should know that most of the earnings from mutual funds support investment advisors' and mutual fund managers' retirement.

People without financial knowledge, who take advice from financial experts are like lemmings simply following their leader. They race for the cliff and leap into the ocean of financial uncertainty, hoping to swim to the other side.

Arrogant or critical people are often people with low self-esteem who are afraid of taking risks. That's because, if you learn something new, you are then required to make mistakes in order to fully understand what you have learned.

Look at the world of books nowadays. People just download books. They don't go to a bookstore. Amazon is wiping out Borders and Barnes and Noble. Those are brilliant examples of ephemeralization doing more with less at a better price.

A plan is a bridge to your dreams. Your job is to make the plan or bridge real, so that your dreams will become real. If all you do is stand on the side of the bank and dream of the other side, your dreams will forever be just dreams.

For something to collapse, not all systems have to shut down. In most cases, just one system is enough. For example, the human body is a system of systems. If just one system, such as the cardiovascular system, shuts down, death follows.

I don't save money. Save is a four letter word! I like to borrow money because I can get richer faster on borrowed money. I have what is called retained earnings, so I don't have to save money. If I need money, I will go out and borrow it.

Many gold and silver experts will recommend you buy numismatic coins - rare and old coins. If you are not a rare coin expert, I'd encourage you to stay away from them. New investors often pay too much for rare coins that are not really rare.

I am successful because I have always been a tortoise. I did not come from a rich family. I was not smart in school. I did not finish school. I am not particularly talented. Yet, I am far richer than most people simply because I did not stop.

I began playing Monopoly for real when I was 26 years old. Today, my wife and I have approximately 1,400 little green houses - each paying us monthly. You do not have to be a rocket scientist or have a Harvard degree to play Monopoly for real.

In school we learn that mistakes are bad, and we are punished for making them. Yet, if you look at the way humans are designed to learn, we learn by making mistakes. We learn to walk by falling down. If we never fell down, we would never walk.

I would not be well-known if I had just used my gift to make money for me. The moment I started to teach others - you teach people to fish - I think that's why my book Rich Dad, Poor Dad became an international bestseller, and things like this.

For people choosing to use a network marketing system to build a business in the B quadrant, the price of entry is a lot lower, the risks are lower, and the education and support are there to guide you through this personal development process.

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