21 May 2020
“Rule #1: You must know the difference between an asset and a liability. Then buy or create assets.
If you want to be rich, this is all you need to know. This is rule #1, it is the only rule.
This may sound absurdly simple, but most people have no idea how profound this rule is.
Most people struggle financially because they do not know the difference between an asset and a liability.
An asset puts money IN your pocket. A liability takes money OUT of your pocket.
Here’s a question for you…
Is the home in which you live an asset or a liability?
In my view, your house is a liability. Even if you own the property with no mortgage, you still pay property taxes, utilities, insurance, maintenance, etc. Therefore: money is being taken out of your pocket.
Once you understand this simple rule… all you have to do is follow it to gain wealth.
To your wealth-building,”
– Robert Kiyosaki