Page 112 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

106 I CHAPTER EIGHT

small cap funds, some tech funds, a fund for foreign equities, and when you
get older, shift into bond funds for steady income. Of course, diversify,
diversify and diversify. It's not smart to keep all ofyour eggs in one basket."
While not exact, I am sure this salespitch, disguised as financial advice,
has a familiar ring to you.
Donald Trump and I are not saying everyone should change and stop
doing this. It is good advice for a certain gtoup ofpeople - people who
have a saver'sphilosophy or are passive investors.
In today's environment, I believe it to be the riskiest of all financial
advice. To the financially unsophisticated, it sounds like safe and intelligent
advice.
Getting back to the difference between a saver and an investor, there is
one word that separates them, and that word is leverage. One definition of
leverage is theability to domore with less.
Most savers do not use financial leverage. And you should not use
leverageunlessyou have the financial education or financial training to apply
it. But let me explain further. Let's look at this standard advice from the
viewpoint of a saver and then an investor, or an E and S quadrant person
versus a B and I quadrant person.

Work Hard

Let's start with the advice "work hard."

When most people think about the words "work hard," they think
only about themselves working hard. There is very little leverage in
you working hard. When Donald and I think about working hard,
while we both work hard individually, we mostly think about other
people working hard for us to help make us rich. That's leverage. It's
sometimes known as other people's time. As already discussed, the
B quadrant person receives more tax breaks than the E and S
quadrants because the B quadrant person creates jobs. In other
words, our government wants us to create jobs ... not look for a job.
Our economy would collapse if everyone started looking for a job.
For our economy to grow, we need people to create jobs.