How to be rich

How to be rich

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In the book rich dad poor dad author said that middle class and poor people are buying liabilities rather than assets. But rich people buy assets. The key difference between liabilities and assets is, assets make money work for you, but liabilities make you work for money. So if we have financial education we can buy assets rather than liabilities, but with lack of financial education rich becoming richer and poor becoming poorer. If you want to be rich you want to make money work for you.

Small example If you want to buy a car but you didnt have money to buy car, so used your credit card and bought a car. But in future you want to pay car debts, and after buying a car you want to buy a house and you didn’t had money so you take loan. And in future you want pay them, likewise you are increasing your debts. The credit card debts, loans these are liabilities. If you want to be rich don’t buy liabilities.

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