Fwd: Rich Dad's Secret To Success

---------- Forwarded message ----------
From: Mike Litman Radio Show <radio@themikelitmanshow.com>
Date: Wed, Nov 14, 2012 at 5:02 AM
Subject: Rich Dad's Secret To Success

Rich Dad's Secret To Success Join the conversation from the 'Mike Litman Show' with Mike and Sharon Lechter, the co-author of Rich Dad, Poor Dad... Mike: I want to bring up something right away. We talked earlier about the difference between a rich dad and a poor dad. The poor dad doesn't have as much capital and stuff going on. What is the cause of the poor dad mindset? Where does that all come from? Sharon: Well, you said the word, Mike, mindset. It's all a mindset. Let's talk a little about Robert's rich dad and his poor dad. His poor dad constantly said, "I can't afford that." Saying stuff like that closed his mind to possibility. In contrast, his rich dad would say, "How CAN I afford it?" His poor dad didn't want to talk about money at the dinner table. His thinking was, "Do you think money grow on trees? I can't do this. I can't afford this." Whereas his rich dad would say, "HOW can we create this asset to pay for things?" If I want a luxury, I need to buy an asset that will generate the revenue to pay for the luxury. It's all in how your attitude and how your mindset is related to money. Mike: Ok, let's stay here on mindset. You said something very interesting. You said, 'your assets buy your luxuries.' Most people have their earned income buy their luxuries. Is that right? Sharon: Absolutely! And once it's gone, it's gone. If you want a new car, you can just go out and write a check to buy your new car. But, when that car is gone, then that money and the car are both gone. So, let's just tweak it a little bit. Instead you go out and you write that same check and you buy a duplex or a four-plex. It's a piece of real estate that generates cash flow every month. Then you can use that positive cash flow to buy your car. And when that car is old and rundown and tired and you need to get rid of the car, guess what, you still have your asset. It's still generating revenue. You still have that real estate generating cashflow. Mike: Answer this question, Sharon, is my home, is your home, is somebody else's home an asset or a liability?  Sharon: So glad you asked that question, Mike. 'It depends' is the answer. Let's talk about your house. Is this the house you're living in? Mike: Let's take that as the example, yes. Sharon: So, it's your house that you're living in. Let's talk about the definition of an asset. An asset puts money in your pocket. Does your house put money in your pocket each month? Mike: NO. Sharon: OK, let's look at the definition of a liability. A liability takes money out of your pocket. Does your house take money out of your pocket every month? Mike: Absolutely. Sharon: Exactly. You have to pay the bank. You have to pay the government through real estate taxes. You have to pay for the yard upkeep and electricity. So, in rich dad's definition, "assets put money in your pocket. Liabilities take money out of your pockets." Which one is your house? Mike: It's a liability. Download 'The Mike Litman Show' on itunes and listen to Mike interview the world's most successful people   320 Runnymede Road Essex Fells, NJ 07021 Unsubscribe here

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