Straight from Rich Dad Poor Dad · Retirement CASH FLOW

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Straight from Rich Dad Poor Dad

Asset or Liability? 🤔

Most people never get this one simple idea:

An asset puts money in your pocket.A liability takes money OUT of your pocket.

That’s it. That’s the whole game. 👇

1️⃣ Your house

If it costs you money every month (mortgage, taxes, repairs) and doesn’t pay you… it’s a Liability.
If it’s a rental that sends you cash flow every month after all expenses… it’s an Asset.

2️⃣ Your car

Car payment, insurance, gas, repairs = money leaving your pocket every month 🚗💸
Unless that car is being used to produce income (delivery, Turo, business vehicle that nets profit), it’s a liability.

3️⃣ Your credit cards

If you’re using them to buy stuff that doesn’t pay you back… that balance is a liability.
Debt tied to cash-flowing assets (notes, rentals, etc.) can be good if the cash flow > payment.

4️⃣ Investments

Stocks that don’t pay you? You hope they go up. That’s speculation.
Notes, rentals, private lending, cash-flow deals? They PAY YOU while you sleep. That’s an asset.

5️⃣ Retirement accounts

A 401(k) sitting in mutual funds, praying the market behaves = 🚩
A self-directed account owning notes, rentals, private deals spitting out cash flow = real assets.

If you look at your life right now…

Are you stacking assets or collecting liabilities with fancy names?

👇 Drop one thing in your life that you thought was an asset… but now realize is actually a liability.

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