Cashflow Quadrant

All of our incomes can be divided into 4 quadrants as shown.
E - employees
S - self employed/specialists (doctor, lawyer)
   - superman (they always do all the things by themselves :p)
   - small business owners
B - big business owners (a system)
I - investors

Heard about 90/10 rule? 10% of the populations own 90% of the $ while 90% of the populations own the rest. Obviously the 10% is come from the right hand side of the quadrants which are 'B' & 'I'.
Hence should you wanna be rich or achieve financial freedom, you gotta do the 'shift'! Shift to the right hand side quadrants!
If it's not now, then when will it be? Not asking you to quit your job immediately, but it's harmless to build up your MULTIPLE sources of income from other quadrants right? Bet you get exactly what I mean.

Source: Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and the Middle Class Do Not! (Miniature Edition)

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Assets vs Liabilities

Is your car an asset? How about your fancy boat? or even your home? Your banker might say these are your assets, but you yourself shouldn't take it as one! Because they're all LIABILITIES!
Per what rich dad said, asset is the one who feeds you while liability is the one who eats you if you stop working tomorrow. Literally, the former puts $ into your pocket while the latter takes $ out instead.
You pay monthly installment & maintenance for your home, whereby it takes out $ from your pocket, hence it's a liability. Well, you could say that some appreciation on your house can gain you some $ when you sell it. YES definitely it could be your ASSET someday! It only happens when you sell it though. But in case you own a rental property which is giving you monthly positive cash flow, then no doubt it's definitely a valuable asset for you!

Source: Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and the Middle Class Do Not! (Miniature Edition)

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