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    Inside this book

    The story of David and Goliath was one of rich dad’s favorite stories. I suspect he may have seen himself as David, a man who started with nothing, yet rose to compete against the giants of the business. Rich dad said, “David could beat Goliath because David knew how to use the power of leverage. A young boy and a simple slingshot were far more powerful than the feared giant, Goliath. That is the power of leverage.”
    My previous books were on the power of cash flow. Rich dad said, “Cash flow is the most important term in the world of money. The second most important is leverage.” He also said, “Leverage is the reason some people become rich, and others do not.” Rich dad went on to explain that leverage is power and that power can work in your favor or against you. Because leverage is power, some use it, some abuse it, and others fear it. He said, “The reason less than 5 percent of all Americans are rich is that only 5 percent know how to use the power of leverage. Many who want to become rich, fail to become rich because they abuse power. And most people do not become rich because they fear the power of leverage.”
    There Are Many Forms of Leverage Leverage comes in many forms. One of the recognized forms of leverage is the leverage of borrowing money. Today we are aware of the severe problem of people abusing this powerful form of leverage. Millions of people struggle financially because the power of debt leverage is used in Introduction 2 against them. Because of the consequences of the abuse of debt leverage, many people now fear this form of leverage, saying, “Cut up your credit cards, pay off your mortgage, and get out of debt.”

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    • Author: Robert Kiyosaki
    • Published in: 2002
    • Genre: Self-help and Personal Finance

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