@@@@@Mike and I understood the simple drawings,
@@@@@Mike and I understood the simple drawings, the jargon, the movement of money, and then in later years, rich dad began adding numbersToday, Mike has gone on to master much more complex and sophisticated accounting analysis because he has had toHe has a billion-dollar empire to runI am not as sophisticated because my empire is smaller, yet we come from the same simple foundationIn the following pages, I offer to you the same simple line drawings Mike's dad created for usThough simple, those drawings helped guide two little boys in building great sums of wealth on a solid and deep foundationYou must know the difference between an asset and a liability, and buy assetsIf you want to be rich, this is all you need to knowThis may sound absurdly simple, but most people have no idea how profound this rule isMost people struggle financially because they do not know the difference between an asset and a liability
"Rich people acquire assetsThe poor and middle class acquire liabilities, but they think they are assets"
When rich dad explained this to Mike and me, we thought he was kiddingHere we were, nearly teenagers and waiting for the secret to getting rich, and this was his answerIt was so simple that we had to stop for a long time to think about it
"What is an asset?" asked Mike
"Don't worry right now," said rich dad"Just let the idea sink inIf you can comprehend the simplicity, your life will have a plan and be financially easyIt is simple; that is why the idea is missed
"You mean all we need to know is what an asset is, acquire them and we'll be rich?" I asked
Rich dad nodded his head
"If it's that simple, how come everyone is not rich?" I asked"Because people do not know the difference
between an asset and a liability
I remember asking, "How could adults be so sillyIf it is that simple, if it is that important, why would everyone not want to find out?"
It took our rich dad only a few minutes to explain what assets and liabilities