Learn how to manage money like the rich do by pay- ing less in taxes Diane and 1 produced these tapes, and we walk you through the process ofgetting out of debt. More importantly, how- ever, you will learn how to manage your money like the rich 182 Rich Dad's Guide to Investing do. This is important because most people think that making more money will solve their money problems. In most instances, it does not. Learning to manage the money you do have like a rich person does is how you can solve your short-term money problems. Doing so also gives you the op- portunity to possibly become financially free. The audiotape set and workbook are contained in a program titled "Your First Step to Financial Freedom." The information found in this educational package is simple, easy to understand, and essential to start building a strong financial founda- tion. You can find out more information about this audio- tape package in the back of this book or from our website at www. richdad. com. Who Are You Making Rich? Literacy Lesson #2: It takes at least two financial statements to see the entire picture. Rich dad said, "Sophisticated investors must see at least two financial statements simultaneously if they want a true picture." You_ Sonwoiw Ehse Financial Literacy Made Simple 183 During one of my lessons, rich dad drew this diagram: "Always remember that your expense is someone else's in- come. People who are out of control of their cash flow make the people who are in control of their cash flow rich." Tit Bank What an Investor Does He then drew this diagram, saying, "Let me show you what an investor does, using a home owner and banker as an example": I sat there looking at the diagram for a moment and then said, "The person's mortgage appears on two financial state- ments. The difference is that this same mortgage appears under two columns: the asset column and the liability column." Rich dad nodded. "Now you are seeing a true financial statement." "That is why you say it takes at least two different financial statements to see the entire picture," I added. "For every one of your expenses, it is someone else's income, and each one of your liabilities is someone else's asset." 184 Rich Dad's Guide to Investing Rich dad nodded, saying, 'And that is why people leaving school who have not been trained to think in terms of finan- cial statements often fall prey to those who do. That is why each time people use their credit card, they are actually adding to their own liability column and simultaneously adding to the bank's asset column." "And when a banker says to you, 'Your home is an asset,' they are not really lying to you. They're just not saying whose asset it really is. Your mortgage is the bank's asset and your li- ability," I said, beginning to more fully understand the impor- tance of financial statements and why it takes more than two statements to gain a more accurate picture.