8. Assets vs Liabilities - Deepstash
8. Assets vs Liabilities

8. Assets vs Liabilities

Assets are investments that generate income, while liabilities are debts or expenses that drain resources. To build wealth, it's important to focus on acquiring assets and reducing liabilities.

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"Rich Dad Poor Dad" is a personal finance book written by Robert Kiyosaki that challenges traditional beliefs about money and investing. The author draws on his experiences growing up with two father figures, one of whom was financially successful, and the other who was not. He teaches readers about the importance of financial education, asset-building, and the differences between assets and liabilities. Kiyosaki shares practical lessons and advice on managing debt, building wealth, and developing financial intelligence.

Similar ideas to 8. Assets vs Liabilities

Assets And Liabilities

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...

Assets vs. Liabilities:

Assets vs. Liabilities:

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).

Calculating your assets and liabilities

Assets are anything of value that you own that can be converted into cash. Examples include:

  • Investments
  • Bank and brokerage accounts
  • Retirement funds
  • Real estate
  • Personal property: vehicles, jewellery and collectables.
  • Cash

Your...

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