No Your Assets And Liabilities, Differentiate Them, Then Know The One You Are Investing On.

Assets Defined

In financial accounting, an asset is any resource owned own by the business. Anything tangible or intangible that can be owned or controlled to produce value and that is held by a company to produce positive economic value. In other words’ Assets represent positive value of ownership that can be converted into cash.
But Robert Kiyosaki simplified it in Rich Dad Poor Dad as; “something that puts money in your pocket”

Liabilities Defined

Financial accouting define liabilities as the future sacrifies of economic benefits that the entity obliged to make to other entity as  a result of past transaction or other past event,  the settlement of whichmayresult in transfer or use of assets, provision of service or other yieldinding of economic benefit in future.
Robert Kiyosaki sated it as “something that takes money from our pockets”. 

Most of the times we struggle financial not because we do not earn enough, but because we don’t differentiate our assets from liabilities. Other times we see our self going over and over on one circle without development or growth. For we to be financially buoyant, we must learn how to save and invest no matter how little; because  the empire you see today started from a basement. Don’t wait till you win jackpot before you start because it may never come. 

According to Robert Kiyosaki and Sharon Lechter in Rich Dad Poor Dad; it is important to be financial literate (to understand money, its circle). To be financial independent (not to depend on salary), build wealth through investment by being your own boss (owning your own businesses) and increase your financial IQ (financial intelligence).

Cash flow of the three class of people: poor, middle class and the rich respectively.
According to Robert Kiyosaki and Sharon Lechter:


Job _ Income (paycheck) 

Expenses _ tax, food, rent, cloths, transportation, fun etc.

Assets _ no assets


Job _ income (paycheck)

Expenses _ tax, food, rent, cloths, transportation, fun etc.

Liabilities _ mortgage, consumer loan, credit card.

Assets _ no assets


Business _ income (dividends, interests, rental income, royalties)

Expenses _ tax, food, rent, cloths, transportation, fun etc.

Liabilities _ none

Assets _ stock, bounds, rates, real estates, intellectual property etc.

With the above illustration you find out that the middle class and the poor spend more than the rich but the rich earn more, save more, invest more.  The poor and the middle class usually have one legal source of income (salary) and dozens of bills to pay

The missing factor of our education is not how to make money, but how to spend it, what you do with it after you make it (financial aptitude), how to keep it from people taking it away from you (saving), how long you can keep it and how resourceful is to you (how hare the money works for you). Some at a point earn more than they need while some win jackpot, but at the long-run, they end up with nothing.


The Japanese this covered these three powers;
The power of Sword, symbolize the power of weapon. America has spent trillions on arms and ammunition, because of this, it is the supreme military presence in the world.

The power of Jewelries symbolizes the power of money. There is some degree of truth on the saying “remember the golden rule, he who has the gold makes the rule”.

The power of mirror symbolism the power of self-knowledge, according to the Japanese legend, self-knowledge is the treasured of all three. 

Work smartly not harder.