Another thing that sets the Rich Dad company apart is, most people think that debt is a four letter word, which it is and they keep saying, "Get out of debt, get out of debt." But, if you're going to be financially intelligent today, you have to know there's good debt and bad debt. Simply put, good debt makes you rich and bad debt makes you poor. What I said earlier, is that my rich dad taught me to be a rich man playing Monopoly. So, the formula is very simple, one four green houses, one red hotel. So, let me say I have a house here, but it's my dream house and I have a big mortgage, interesting the word mortgage means death, engaged until death. So, if the cash is flowing out of your pocket every month, which most dream houses do, then that is bad debt. At the same time, if I have a dream house and I still have a mortgage or debt, but the cash is flowing into my pocket, then that's good debt.
So to be rich, the Rich Dad company really believes that improve your financial IQ, noticing good debt and bad debt and if you have good debt you get richer and richer. If you have bad debt, which is debt that takes money out of your pocket every month, like a credit card, your card payments and stuff like that, then that's bad debt. So, in this day and age it's important to know the difference between good debt and bad debt. That's what makes the Rich Dad company different.
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