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New Rule of Money #8: Since Money Is Becoming Worth Less and Less, Learn To Print Your Own

Learn how you can use financial education to print your own money—legally

This is the eighth in a series on the new rules of money. I lay the foundation for this series in my post “ The Real Reason You Feel (and Are) Poorer ”. I highly suggest you read that post in preparation for this and the following posts on the new rules of money.

Over the last two decades, the average wage of the American worker has either dropped or gone flat. Meanwhile, inflation has continued to grow. What this means in simple terms is that your money buys less than it used to and you’re making less of it.

In today’s economy, it’s lunacy to think you’ll get ahead by getting a good job and saving money. Your money becomes worth less and less each day. In the new world of money, it’s imperative that you learn how to print your own money—legally.

An infinite return

To me, one of the best advantages of financial education is the ability to print your own money. The way you can do this, legally, is via a financial term known as return on investment (ROI).

When you talk to most financial experts, they’ll tell you that 5 to 12 percent is a good ROI. And it is, if you don’t have financial education. Another thing they’ll say is that the higher the return, the higher the risk. That is also true, if you don’t have financial intelligence.

Personally, I always look to have an infinite return on my investments. And this can be achieved if you have a high financial IQ.

The definition I use for an infinite return is “money for nothing.” More specifically, an infinite return is when you get all your money back from an investment in a cash-flowing asset, you still own that asset, and you still enjoy the cash flow month in and month out.

Printing your own money in business

Kim and I started the Rich Dad Company at our kitchen table. Rather than use our own money, we raised $250,000 from investors. In less than three years, thanks to the growth of our business, we paid back our investors 100 percent plus an additional 100 percent to purchase back their shares. Today, our business puts millions into our pockets even though we have none of our own money invested in it. That’s an infinite return. In other words, our business prints money for us.

Printing your own money in real estate

We work with our real estate partner, Ken McElroy, to print money through real estate all the time. We will find an underperforming apartment community, purchase it with investor money, do upgrades, raise rents, and increase the value of the property. We can then refinance that property tax-free and pay back our investors from the loan proceeds—while still enjoying positive cash flow. Once all investors are paid back, we still enjoy the cash flow. That too is an infinite return.

Those are just two examples of how you can, with the right financial education, print your own money. And doesn’t it make more sense than working harder at a job to pay more in taxes, saving money in the bank and losing purchasing power, or risking your money for the long term in the stock market? I think so. I hope you do to.

Increase your financial IQ today and start printing your own money the legal way.

Original publish date: July 12, 2016

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