So after months of having my younger cousin nag me about reading Rich dad Poor dad, I finally picked up the copy of it and started reading it.
It might have taken me awhile to fully understand the concept behind it all and for all I know, I’m still very much lost in the financial illiteracy forest. The mere idea of the idea that “The rich don’t work for money, they make money work for them” was mind blowing, literally just had me thinking how does money work for anyone, of course other then the standard savings account with bare minimum interest that barely makes a difference after months/years of saving.
Knowing the difference between an Asset and a Liability was said to be one of the first lessons I was introduced to.
An Asset basically puts money into your pocket.
A liability takes money out of your pocket.
So is a house still an Asset or is the mortgage bill paid every month making it a liability …..?
Clearly this understanding might take awhile…… see ya