Page 218 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

Rich Dad's Wisdom:

The Power of Words

Words are gasoline for your brain. If you improve your financial
vocabulary, you will become richer and richer. The good news is: words are
free. Which proves, once more, that it does not take money to make money.
To expand your vocabulary beyond the financial terms in the glossary

you’ll find on the Rich Dad web site you might consider acquiring a
dictionary of financial terms. When you look up financial words on a
regular basis (or look the definition of a term you hear but do not
understand) you may find yourself becoming richer and richer.

An example of the power of words: When people advise you to get out of
debt, do they know what they are talking about?

When you buy a bond, you are buying debt. For example, a U.S. T-
bill is a bond—an IOU from the U.S. government. So when you buy a
bond you are buying debt... debt that is an asset to you and a liability

to the government. So debt can be good. Some of the richest people in
the world (as well as financial institutions) get richer becausethey
invest in debt.

When a banker says your house is an asset... ask yourself: Whose asset is it?
By definition, assets put money in your pocket and liabilities take money
from your pocket. When you look at your bank’s financial statement, you
can better see whose asset your home really is...

To improve your brain’s financial power... improve your financial
vocabulary. Words are fuel for your brain!