359. Differences between the Rich and the Poor

The Rich keep getting richer and the Poor poorer because the each keep on doing what they have always done. Take all the wealth in the world (which, incidentally, is concentrated in the hands of about 5% of the population) and re-distribute it so that everyone has an equal share and within a few short weeks, it would end up again in the same hands, for the same reason.

"Rich" and "Poor" are not genetic or mathematical conditions although they can be measured mathematically, rather, they are states of mind.  One primary difference between the rich and the poor is that the poor say "I can't afford it." much more often than the rich do. (Instead they should be ASKING the question : "How can I come to afford it ?")  The first sentence on your list of forbidden statements ought to be "I can't afford it".  In planning your life and career, do not, like most people, plan to be poor or fail to plan at all. Plan, instead, to be wealthy. Plan your life so that you will retire young and rich. Always remember that retirement is not a function of your age but of your wealth.

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