In the video, Robert Kiyosaki (of Rich Dad, Poor Dad fame and someone with more knowledge than me) explains exactly why (with a helpful accounting diagram) the house you own is not an asset and, instead, is a liability.
Kiyosaki makes some very helpful points, such as:
- People today call their liabilities “assets”;
- The concept that an item that takes money out of your pocket is a liability, and an item that puts money in your pocket is an asset; and
- The power of cash flow.
It’s a short and very insightful video. Enjoy!