There are 2 types of income:

Active Income: You are trading time for money. In order to make money you must perform something. Every day you start from zero.

Passive Income: You do not have to be present to generate income. Things like real estate...

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...

Kiyosaki introduces the concept of assets and liabilities, emphasizing the significance of building assets (such as real estate, stocks, and businesses) that generate income, rather than accumulating liabilities (such as consumer debt and luxury items).