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Choose assets over liabilities from "summary" of Wisdom from Rich Dad, Poor Dad by Robert Kiyosaki
The key to financial success is understanding the difference between assets and liabilities. Assets put money in your pocket, while liabilities take money out of your pocket. Assets are things like real estate, stocks, bonds, businesses, and intellectual property that generate income for you. Liabilities, on the other hand, are things like mortgages, car loans, credit card debt, and other financial obligations that drain your resources. Many people make the mistake of accumulating liabilities instead of assets. They buy expensive cars, houses, and other luxury items that don't generate income. This creates a cycle of debt that can be difficult to break. Instead, focus on acquiring assets that will produce passive income for you. This will allow you to build wealth over time and achieve financial freedom. One way to start building assets is to invest in real estate. Real estate can provide a steady stream of income through rental properties or appreciation in value over time. Another option is to invest in stocks and bonds, which can generate dividends and interest income. Starting a business is another way to create assets that can generate income for you. By choosing assets over liabilities, you are putting yourself on the path to financial independence. It's important to educate yourself about different investment opportunities and to make informed decisions about where to put your money. Remember, the goal is to build a portfolio of assets that will provide you with a reliable source of income for the future. Don't get caught up in the cycle of accumulating liabilities that will only weigh you down financially. Focus on building assets that will help you achieve your financial goals.
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