〃The first of the month;〃 I said。
〃Does he have anything left over?〃 he asked。
〃Very little;〃 I said。
〃Thats the main reason he struggles;〃 said rich dad。 〃He has bad habits。〃
〃Your dad pays everyone else first。 He pays himself last; but only if he has anything left over。〃
〃Which he usually doesnt;〃 I said。 〃But he has to pay his bills; doesnt he? Youre saying he shouldnt pay his bills?〃
〃Of course not;〃 said rich dad。 〃I firmly believe in paying my bills on time。 I just pay myself first。 Before I pay even the government。〃
〃But what happens if you dont have enough money?〃 I asked。 〃What do you do then?〃
〃The same;〃 said rich dad。 〃I still pay myself first。 Even if Im short of money。 My asset column is far more important to me than the government。〃
〃But;〃 I said。 〃Dont they e after you?〃
〃Yes; if you dont pay;〃 said rich dad。 〃Look; I did not say not to pay。 I just said I pay myself first; even if Im short of money。〃
〃But;〃 I replied。 〃How do you do that〃
〃Its not how。 The question is Why;〃 rich dad said。
〃OK; why?〃
〃Motivation;〃 said rich dad 〃Who do you think will plain louder if I dont pay them…me or my creditors?〃
〃Your creditors will definitely scream louder than you;〃 I said; responding to the obvious。 〃You wouldnt say anything if you didnt pay yourself。〃
〃So you see; after paying myself; the pressure to pay my taxes and the other creditors is so great that it forces me to seek other forms of ine。 The pressure to pay bees my motivation。 Ive worked extra jobs; started other panies; traded in the stock market; anything just to make sure those guys dont start yelling at me。 That pressure made me work harder; forced me to think; and all in all made me smarter and more active when it es to money。 If I had paid myself last; I would have felt no pressure; but Id be broke。〃
〃So it is the fear of the government or other people you owe money I to that motivates you?〃
〃Thats right;〃 said rich dad。 〃You see; government bill collectors are big bullies。 So are bill collectors in general。 Most people give into these bullies。 They pay them and never pay themselves。 You know the story of the 96…pound weakling who gets sand kicked in his face?〃
I nodded。 〃I see that ad for weightlifting and bodybuilding lessons in the ic books all the time。〃
〃Well; most people let the bullies kick sand in their faces。 I decided to use the fear of the bully to make me stronger。 Others get weaker。 Forcing myself to think about how to make extra money is like going to the gym and working out with weights。 The more I work my mental money muscles out; the stronger I get。 Now; Im not afraid of those bullies。
I liked what rich dad was saying。 〃So if I pay myself first; I get financially stronger; mentally and fiscally。〃
Rich dad nodded。
〃And if I pay myself last; or not at all; I get weaker。 So people like bosses; managers; tax collectors; bill collectors and landlords push me around all my life。 Just because I dont have good money habits。〃
Rich dad nodded。 〃Just like the 96…pound weakling。〃
Reason No。 5。 Arrogance。 Arrogance is ego plus ignorance。 I 〃What I know makes me money。 What I dont know loses me money。 Every time I have been arrogant; I have lost money。 Because when Im arrogant; I truly believe that what I dont know is not important;〃 rich dad would often tell me。
I have found that many people use arrogance to try to hide their own ignorance。 It often happens when I am discussing financial statements with accountants or even other investors。
They try to bluster their way through the discussion。 It is clear to me that they dont know what theyre talking about。 Theyre not lying; but they are not telling the truth。
There are many people in the world of money; finances and investments who have absolutely no idea what theyre talking about。 Most people in the money industry are just spouting of
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