Rich Dad Poor Dad is a starting point for anyone looking to gain control of their financial future


This is the cash-flow pattern of a liability



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Rich Dad Poor Dad - Robert T Kiyosaki

This is the cash-flow pattern of a liability:
Assets
BALANCE SHEET
Liabilities
Income
Expenses
INCOME STATEMENT
Now that assets and liabilities have been defined through pictures, 
it may be easier to understand my definitions in words. An asset is 
something that puts money in my pocket. A liability is something 
that takes money out of my pocket. This is really all you need to 
know. If you want to be rich, simply spend your life buying assets. If 
you want to be poor or middle class, spend your life buying liabilities.
Illiteracy, both in words and numbers, is the foundation of
financial struggle. If people are having difficulties financially, there is 
something that they don’t understand, either in words or numbers. 
The rich are rich because they are more literate in different areas 
than people who struggle financially. So if you want to be rich and 
maintain your wealth, it’s important to be financially literate, in 
words as well as numbers.


Rich Dad Poor Dad
49
The arrows in the diagrams represent the flow of cash, or “cash 
flow.” Numbers alone mean little, just as words out of context 
mean little. It’s the story that counts. In financial reporting, reading 
numbers is looking for the plot, the story of where the cash is flowing. 
In 80 percent of most families, the financial story paints a picture of
hard work to get ahead. However, this effort is for naught because
they spend their lives buying liabilities instead of assets.
This is the cash-flow pattern of a poor person:
Assets
BALANCE SHEET
Liabilities
Income
Expenses
INCOME STATEMENT
Taxes
Rent

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