Asset and Liability

IMG_1904

 

The most important rule is to know the difference between an asset and a liability. Once you understand the difference, concentrate your efforts on buying income-generating assets. That’s the best way to get started on a path to becoming rich. keep doing that, and your asset column will grow. Keep liabilities and expenses down so more money is available to continue pouring into the assets column.

My next goal would be to have excess cash flow from my assets reinvested into the asset column. The more money that goes into my asset column, the more my asset column grows. The more my assets grow, the more my cash flow grows. And as long as I keep my expenses less that the cash flow from these assets, I grow richer with more and more income from sources other than my physical labor.

Robert T. Kiyosaki

Advertisements

One thought on “Asset and Liability

  1. Pingback: A New Domestic Accounting Model based on Domestic Well-Being | Business and Finance

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s