Asset Vs Liability

A liability takes money out of your pocket.

An asset increases the value of your money.

The cash flow patterns of poor, middle-class, and rich people differ based on their assets and liabilities.

Income Sheet:

Income: Money earned from various sources.

Expenses: Mone...

According to Kiyosaki in his book "Poor Dad, Rich Dad", rich people do certain things poor people don't:

1. The rich buy assets (things that generate revenue like bonds), not liabilities (things that cost money like rent).
2. The rich be...

Being rich is, at its very core, about being patient with your money and the accumulation of knowledge, experience and your net worth. If you are investing in appreciating assets instead of spending it on liabilities (like a fancy car), you will experience true wealth.

If we curb our resta...