Understand the difference between assets and liabilities from "summary" of Rich Dad, Poor Dad by Robert T. Kiyosaki
One of the most important lessons I learned from my rich dad was the difference between assets and liabilities. Assets are things that put money in your pocket. They can be investments like stocks, bonds, real estate, or even a business that generates income. On the other hand, liabilities are things that take money out of your pocket. This can include expenses like mortgages, car loans, credit card debt, or any other financial obligations. Understanding the difference between assets and liabilities is crucial if you want to achieve financial independence. Many people mistakenly believe that a big house, fancy car, or designer clothes are assets. However, if these items are draining your bank account every month, they are actually liabilities. Rich people focus on acquiring assets that will...
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