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Posts Tagged ‘Wealth creation strategy’

Let us look at the explanation, according to some experts Robert Kiyosaki, Rich Dad Poor Dad In his book Rich Dad Poor Dad, Kiyosaki explains that a rich person is someone who is financially free. Financially free means he is free to use his own money, free to work whenever you want, and most importantly, free from all fears of future financial problems.

According to Kiyosaki, financial freedom can be achieved with has far greater asset than a liability. He emphasized the importance of knowing the difference of assets and liabilities if the want to be rich. Asset poured money into your pocket, and a liability takes money out of your pocket. To become rich you need a wealth creation strategy, one must find assets include everything that money into your pocket and minimize liability as wealth creation strategy and all the things that drained money from your pocket: self-occupied house, car, and so on.

Interestingly, Kiyosaki teaches that the house owned by a person who is not an asset. Why? The house was causing the owner to spend money on a regular basis, such as to pay property tax, pay maintenance fees, or other bills such as electricity for a wealth creation strategy. Although its value from year to year increase, but no real earning obtained. You will not enjoy the increase in value unless you sell or rent your house (which makes it something that includes money into the pockets).