358. Leverage

The next most imprtant word (after "Cashflow") in the financial world is "Leverage." This is the reason some become rich while others do not. Leverage is power. Some learn to use it, others have it used against them and yet others fear it. Learn to use the power of leveraged debt in your favour. There are two types of debt : good and bad. Leveraged debt is good debt. Good debt is defined as debt that makes you rich, an example is debt incurred while trading options. Bad debt is defined as debt that makes you poor, an example is excessive consumer debt.
Rich Dad's CASHFLOW Quadrant: Rich Dad's Guide to Financial Freedom