~ Robert T. Kiyosaki
Most people go on with their lives acquiring money problems, not because they are not smart, but because they fail to learn the simplest rule in financial education -- identifying which is an ASSET and which is a LIABILITY.
Let me show you the three different types of CASH FLOW, one of the poor, the middle class and of the rich. These are FINANCIAL STATEMENTS and BALANCE SHEETS that show the flow of money into our lives.
This is the cash flow pattern of the POOR:
Their income just flow to expenses and out of their pockets.
This is the cash flow pattern of the MIDDLE CLASS:
Their income goes to liabilities, believing that they are buying assets, thereby incurring more debts and adding more expenses.
This is the cash flow pattern of the RICH:
Their income goes to ASSETS, thereby producing more income. This is the very reason why the rich gets richer. They invest into increasing their asset columns.
So what exactly is an ASSET and a LIABILITY?
An ASSET is anything that puts money into your pocket.
A LIABILITY is anything that takes money out of your pocket.
So yes, your house, if you are still paying for mortgage is a LIABILITY. It takes out money from your pocket every month. While, if you have a house and have it for rent, then it is an ASSET, since it puts money into your pocket regularly. I am not saying you don't buy a house, I am just giving you an idea that if you want a bigger house, increase your asset column first to generate more cash for you to buy your house using your asset cash, not your working income.
FINANCIAL EDUCATION is important if you want to get ahead in life. These ASSET vs LIABILITY rule is one of the simplest yet overlooked by people. Do not fall into the trap of doing what most people are doing. Take control of your life and your money. THE FUTURE IS YOURS, take it!
Kate Cu (+639178808021)
Life and Business Coach
www.ca2020.net
ckatecu@createabundance2020.com
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