Start by understanding the difference between assets and liabilities from "summary" of Rich Dad's Guide to Becoming Rich Without Cutting Up Your Credit Cards by Robert T. Kiyosaki
To become rich without cutting up your credit cards, you must first grasp the fundamental concept of assets versus liabilities. Assets are things that put money in your pocket, while liabilities are things that take money out. Understanding this difference is crucial to building wealth. Many people mistakenly believe that their home is an asset because it has value. However, if your home is taking money out of your pocket every month in the form of mortgage payments, property taxes, and maintenance costs, then it is actually a liability. True assets are investments that generate income, such as rental properties, stocks, businesses, or intellectual property. By focusing on acquiring assets that produce income, you can increase your cash flow and build wealth over time. This requires a shift in mindset from simply accumulating possessions to strategically investing in income-generating assets. It's not about how much money you make, but rather how much money you keep and how hard it works for you.- You must focus on acquiring assets that will continue to generate income even when you're not actively working. This passive income is what will ultimately allow you to escape the "rat race" and achieve financial freedom. By understanding the difference between assets and liabilities and choosing to prioritize the former, you can set yourself on the path to becoming rich without sacrificing your credit cards.
