Page 114 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

108 I CHAPTER EIGHT

Donald Trump and I use debt to get richer. Our bankers love us. Our
bankers want us to borrow as much money as we can because borrowers
make them richer. This is called other people's money (OPM). Donald and
I recommend more financial education for you because we want you to be
smarter when it comes to the use of debt. If we have more debtors, our
nation's economywill grow.Ifwe have more savers, our economy will shrink.
Ifyou can understand that debt can be good, and carefully learn to Use
debt as leverage, you will gain an advantage over most savers.

Get Out OfDebt

Most savers think that debt is bad and that paying offthe mortgage on
their home is smart. And for many people, debt is bad and getting out of
debt is smart. Yet, ifyou are willing to invest some time in your financial
education, you can get ahead faster using debt as leverage. But again, I
caution you to first invest in your financial education before you invest
with debt.
There isgood debt and bad debt. The purpose ofgetting financially
smart is to know when to use debt and when not to.

Donald and I love real estate simply because our bankers love to
lend us money to buy good real estate - real estate that is well-
managed. Ofcourse, there isalsogood real estate and bad real estate.

Savers who invest in mutual funds have a difficult time using

leverage, simply because most bankers will not lend money on
mutual funds. Why? Apparently bankers think mutual funds are
too risky and consider real estate a safer investment.

Just as mypoor dad fellbehind financiallyin the early 1970s because
he was a saver, millions ofpeople today are falling behind financially
for the same reason.

In this e~onomic environment, savers are losers and debtors are
winners. You should always be careful when using debt for any
reason.

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