Magic words Quote by Robert T. Kiyosaki
““terms. The net effect is that I have created $30,000 in my asset column for which I am paid interest, just like a bank gets paid interest for the loans it makes. I was beginning to be a bank, and I loved it. Remember that rich dad said, “Be careful when you take on debt. If you take on debt personally, make sure it’s small. If you take on large debt, make sure someone else is paying for it.” In the language of the B and I side, I “laid off” my risk, or “hedged” my risk to another buyer. That is the game in the world of finance. This type of transaction is done all over the world. Yet wherever I go, people come up to me and say those magic words: “You can’t do that here.” What most small investors fail to realize is that many large commercial buildings are bought and sold exactly in the manner described above. Sometimes they go through a bank, but many times””
About This Quote
Source Book: Rich Dad Poor Dad, 1997
Creating assets that generate interest mimics banking, but risk must be managed and debt used wisely.
In simple terms: Build interest‑generating assets, manage debt.
Key Takeaway
Invest in income assets.
Themes
finance
risk management
wealth building
Mood
advisory
motivational
Type
financial
strategic
When to use this quote
- personal investing
- real estate
- business ventures
Key Concepts
leverage
asset allocation
financial education
Questions to Reflect On
- How do you assess safe debt levels?
- What safeguards protect against risky hedges?
A Different Perspective
Risk of over‑leveraging can cause loss.
![“I've come to understand that arguing with [my wife] about it has never solved anything. So instead of denying it, I've learned to take her hands, look her in the eyes, and respond with those three magic words every woman wants to hear: "You're right, sweetheart.” quote by Nicholas Sparks](https://sms4smile.com/quotes/img-quotes/638/nicholas-sparks-93_arguing_i-ve-come-to-understand-that-arguing-wit_197655.jpg)
