Assets and Liabilities

I have been reading the book Rich Dad Poor Dad. It is an interesting story of a person being trained from a very early age to simply understand money. The book was written to the financially inept with a lack of actual information. It seems that the author tries to tell his story in a way to exonerate him from actually giving advice. With that said, I am glued to this book. It explained the one concept that I needed to understand. Assets make you more wealthy; they provide you with money. Liabilities make you less wealthy; they provide you with expenses. Therefore, in order to be wealthy, you must acquire assets rather than liabilities. I did not come from a wealthy family, I do not expect to receive an inheritance other than momentos. In order for me to be wealthy, I have to work for money, I can then use that money to acquire assets which will then put my money to work. The author symbolically describes your dollars as employees, you can give away your employees, or you can put them to work.

Anyway, I have put myself in a situation that makes acquiring assets more slow. But eventually, I will have it figured out. I really hope I don't have to work for the next 40 year just to die on the street because I couldn't afford a nursing home...