Page 105 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

Two years ago, I wanted a new car—a Bentley convertible. The price:
$200,000. I had the money in my asset column. I could’ve purchased the

car for cash. The problem with buying a $200,000 Bentley with cash is that
the car is worth only $125,000 the moment I drive it off the lot. That is not
a smart use of my cash.
Instead of spend my cash, I called my stockbroker Tom and authorized

him to convert some of my gold and silver shares into $200,000 cash. His
job was to take the $200,000 and turn it into $450,000. The project was
named The Bentley Account. It took Tom about eight months, but he finally
called and said, “You can buy your Bentley.” I then wrote a check and paid

for the Bentley with the cash that had been created by my assets. The
transaction looked like this:
Starting balance-sheet position:

Ending balance-sheet position:

The reason I needed the account traded up to $450,000 is because the

extra $50,000 was to offset the taxes on the capital gains and the
commission that Tom made. At the end of the day, I had my Bentley, and I
still had the original $200,000.
If I had just paid cash for the Bentley, without trading the account, the

ending balance-sheet position would have looked like this: