Page 142 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

debt, as those who follow the rules of old capitalism do, we work hard to
find ways to get into more good debt and use more leverage.

Starting with Nothing

To some of you a $17 million, 300-unit apartment building sounds like a
big investment. To some of you, it’s a small investment. Ten years ago,
buying a 300-unit apartment seemed big to Kim and me. Ten years from

now, I am certain it will seem like a small investment. Kim, Ken, and I are
already planning much bigger projects to take on. Donald Trump and I are
looking at a massive project not far from my home, a project we will break
ground on in ten years.

I mention the size and dollar amounts of projects to make three points:

1. Being born poor and financially uneducated does not mean you cannot

become rich. Very few people are born rich enough to buy a $17 million
apartment complex. And no one is born smart enough to acquire, finance,
and manage a 300-unit apartment complex by themselves. In other words,
not having any money or financial education isn’t an excuse not to get

started. Yet billions of people let the problem of not having money or
enough education stop them from becoming rich. They fail to take the first
step. And if they do take the first step and then fail, make a mistake, lose
money, or run into problems, many quit. That is why for billions of people,

a $17 million project will always seem like a big project, a project bigger
than their dreams.

2. Start small and take baby steps. In 1989, Kim’s first investment was a
$45,000 two-bedroom, one-bath home in Portland, Oregon. She put $5,000
down and made $25 a month. She was extremely nervous when she took
her first step. Today, a $17 million apartment house is boring to her. She is
ready for bigger projects.

In 1997 Ken McElroy started with a two-bedroom, two-bath condo in
Scottsdale, Arizona. It cost $115,000, and he put down $23,000. He made