Rich Dad's Guide to Becoming Rich Without Cutting Up Your Credit Cards. Robert T. Kiyosaki

the full price. They violate a universal law.”

      Mike chimed in, “That is why it takes two people to have a fight. And to be a good detective, you have to also be a good crook. To lower risk, you have to take risks. To be rich, you have to know what it is like to be poor. To know what a good investment is, you have to also know what a bad one is.”

      “And that is why most people say investing is risky,” I added. “Most people think that, to invest in a safe investment, you must also lower your return on the investment. That is why so many people put money in a savings account. They put it in for security and are willing to take less interest for that safety. But their money is being eaten away by inflation. And the interest on their money is taxed at a high rate. So their safe-as-money-in-the-bank idea is not such a safe idea.”

      Rich dad concurred. “Having money in the bank is better than not having money in the bank. But you are correct by saying that it’s not as safe as they may like to think. There is a price for that illusion of safety.”

      Mike then turned to his dad and said, “You’ve always said that it’s possible to have low-risk investments with very high returns.”

      “Yes,” replied rich dad. “It is relatively easy to have security and still get a 20 to 50 percent return without paying a lot in taxes or using much of your own money—if you know what you are doing.”

      “So what you’re telling us now,” Mike said, “is that the price you paid was higher than what the average investor is willing to pay.”

      Rich dad nodded. “Always remember that everything has a price, and that price is not always measured in money.”

      The Price of Being Cheap

      When I hear money gurus say, “Cut up your credit cards, buy a used car, and live below your means,” I know they mean well. But as my rich dad said, “Everything has a price.” And the price for becoming rich by being cheap is that you still wind up being cheap. And living life as a rich but cheap person is, in my opinion, a very high price to pay.

      Rich dad also said, “The problem is not the credit cards. It is the financial illiteracy of the person holding the credit cards that is the problem. Getting financially literate is part of the price you need to pay to become rich.”

      And that is why so many people do not like the idea of cutting up their credit cards and living below their means. Given the choice, I think most people would rather enjoy this life as rich people who enjoy rich lives. And they can, if they are willing to pay the price.