the Rich Dad Company. By Robert Kiyosaki
Congratulations as you continue your journey to increase your financial IQ. I’m Robert Kiyosaki, author of the all time, best selling, personal finance book of all time, Rich Dad Poor Dad. In my first letter to you, I explained the CASHFLOW Quadrant. In this second letter I will share another “Rich Dad Difference”, how we view Assets and Liabilities.
In 1997, when I released Rich Dad Poor Dad, I caused a bit of a commotion when I stated that your house is NOT an asset. If you want to be rich, you have to know the difference between assets and liabilities.
|Many people are struggling financially today because they think some of their liabilities are assets. Your house is not an asset. Your car is not an asset. What makes something as asset is that it puts money into your pocket.
A liability takes money out of your pocket. Your house is probably NOT an asset because it takes money out of your pocket. Even if your mortgage is paid off, there is insurance and taxes and other expenses TAKING MONEY OUT OF YOUR POCKET.
Welcome to my world.
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