Avoid getting into debt for liabilities that do not generate income from "summary" of Cashflow Quadrant: Rich dad poor dad by Robert T. Kiyosaki
One of the key principles of financial literacy is to be cautious when taking on debt for items that do not have the potential to generate income. This is especially important when considering liabilities that only drain your financial resources without providing any return on investment. It is crucial to understand the distinction between assets and liabilities in order to make informed decisions about where to allocate your resources. Assets are items that put money in your pocket, such as rental properties, stocks, or businesses that generate income. Liabilities, on the other hand, are things that take money out of your pocket, like consumer debt, car payments, or a mortgage on a primary residence. While it is common to take on debt to acquire assets that will appreciate in value and generate income, it is unwise to accumulate debt for liabilities that do not contribute to your financia...
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