The Balance Sheet Assets VS Liabilities

Hence,

So the Rich Dad says, "If house and car are your biggest "asset", you are in trouble.They are liabilities!

Dictionary:
Asset

1. A useful or valuable thing, person, or quality: "quick reflexes were his chief asset".

2. Property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies: "growth in net assets".

Liabilities

1. The state of being responsible for something, esp. by law.

2. A thing for which someone is responsible, esp. a debt or financial obligation.

2 simple definitions from Rich Dad

Assets :     Things that put money in your pocket monthly, or yearly.

Liabilities : Things that take money from you monthly.

So, what asset do you have?

Me myself got.. er... er.... liabilities =.="

I think this blog will bring in some passive income in the future :)

Because you are reading... hehe..

~~jerryteh

Book : Rich Dad, Poor Dad

If you do read, "Rich Dad Poor Dad" is just like McD in the world of reader."thumb up" if you agree.

I read few years back, untouched.(  Maybe was too innocent:'(  )

Few weeks back I read for second time, amazed! Now I know why one of my successful friend always re-read a book, which I thought was boring.

Just to share some inspiring quotes from the book for this article, more summary will be shared next,

1. Today, the most dangerous advice you can give a child is                                                    "Go to school, get good grades and look for a safe secure job".
2. The loveLACK of money is the root of all devil!
3. "How can I afford it?" rather than "I can't afford!"
4. Rich = Earn > Spend > Tax                                                                                                         Middle class = Earn > Tax > Spend
5. We have a price because of human emotions named fear and greed. That is the biggest trap.
6. Try to own the corporate ladder.
7. Financial literacy bring wealth, not income.
8. Wealth is a person's ability to survive so many number of days forward... or if I stopped working today, how long could I survive?
9. Definition :

10.  Optimum  :

More detailed-summary for the next article:)