QUIET MONEYWhy Your House Isn't Actually an Asset
Robert Kiyosaki's rule flips conventional wisdom on your home. Learn why your house is a liability and how to focus on actual cash-flowing assets.
Key numbers
- LIABILITY
- COSTS YOU
- RAT RACE
- MORE BILLS
- CASH FLOW
- THE CATCH
- DEBT RISKS
The full story
Your home isn't an asset. Robert Kiyosaki wrote in Rich Dad Poor Dad that it's actually a liability. Here's why. An asset puts money in your pocket. A liability takes money out. Your house takes cash every single month for mortgage, taxes, and repairs. It doesn't pay you. Most people stay stuck in the rat race because they buy a bigger house as soon as they get a raise.
Expenses rise right along with income. You're forced to keep working just to pay the bills. Kiyosaki says true wealth comes from buying things that generate cash flow without your labor. But here's the honest catch. Real estate takes heavy capital, and Kiyosaki's own company once filed for bankruptcy. Leverage cuts both ways. Debt can break you just as fast as it builds you.
This week, audit your monthly spending and separate things that pay you from things that drain you. Follow for the money rules school never taught you, because...
Sources and math
- In 2012 his company Rich Global LLC filed for bankruptcy after a court ordered it to pay $23.7 million. (Verified research brief fact on Robert Kiyosaki.)
Questions
- What is the main lesson of "Why Your House Isn't Actually an Asset"?
- Robert Kiyosaki's rule flips conventional wisdom on your home. Learn why your house is a liability and how to focus on actual cash-flowing assets.