In Rich Dad Poor Dad, Robert Kiyosaki defines assets and liabilities in simple, practical terms:
- Assets:
- Definition: Anything that puts money into your pocket.
- Examples: Rental properties, stocks, bonds, businesses, and other investments that generate income or appreciate in value.
- Purpose: Assets generate positive cash flow and contribute to building wealth.
- Liabilities:
- Definition: Anything that takes money out of your pocket.
- Examples: Mortgages, car loans, credit card debt, and any other expenses or debts that require regular payments.
- Purpose: Liabilities create expenses and reduce cash flow, which can hinder wealth accumulation.
Key Concept: Kiyosaki emphasizes focusing on acquiring assets that generate income rather than liabilities that incur expenses, as this is the path to financial independence. Let’s go FIRE!
Source : Rich Dad Poor Dad, Robert Kiyosaki
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