Definition of Assets
One statement made throughout the book was the cause of both criticism and praise in the media. In the book, Kiyosaki claims that an individual's house is not an asset, although bank permits people to enlist it as such. In fact, a house is a liability. His definition of assets and liabilities are somewhat simplistic, and are written as such: "During hard times assets feed you, and liabilities eat you". Kiyosaki was indicating that liabilities are, by definition: "anything that takes money out of your pocket"; while assets, are "properties that bring money into your pocket." Therefore a house that cost you money is a liability, and a rental property that produces positive cash flow income is considered to be an asset. A profitable business is also an asset, while a business that loses money is considered a liability.
Read more about this topic: Rich Dad Poor Dad
Famous quotes containing the words definition of and/or definition:
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