Rich dad chapter 2

What are the differences between educated dads financial statement and rich dads financial statement

For the poor dad it shows that his income and expenses are equal while his liabilities are larger than his asset. For the rich dad, it reflects the results of a life dedicated to investment and minimizing liabilities

What solves most money problems

Intelligence

What is the authors definition of wealthy

Persons ability to survive so many number of days forward-or, if I stopped working today, how long could I survive

When your only source of income is your paycheck, who is your financial well-being dependent on

Their employer

Describe what happens to the recently married, happy, highly educated young couple in terms of income and expenses

They don't spend their money the right way. They keep using their credit cards to make unnecessary purchases. Instead of saving

What is work for government and work for bank mean

Work for government means that the government takes its share from your paycheck before you see it. Work for bank means that after taxes, your next largest expense is usually mortgage and credit-card debt

What is rule #1

You must know the difference between an asset and a liability

Why can't educated dad invest in assets

His expenses match his income, never allowing him enough left over to invest in asset and his liabilities are larger than his assets

What is the authors definition of an asset

Something that puts money in your pocket

What is the authors definition of a liability

Something that takes money out of your pocket

If you want to be poor or middle class what should you do

Spend your life buying liabilities

If you want to be rich what should you do

Spend your life buying or building asset