Definition of Assets
One statement made throughout the book was the cause of both criticism and praise in the media. In the book, Kiyosaki claims that an individual's house is not an asset, although bank permits people to enlist it as such. In fact, a house is a liability. His definition of assets and liabilities are somewhat simplistic, and are written as such: "During hard times assets feed you, and liabilities eat you". Kiyosaki was indicating that liabilities are, by definition: "anything that takes money out of your pocket"; while assets, are "properties that bring money into your pocket." Therefore a house that cost you money is a liability, and a rental property that produces positive cash flow income is considered to be an asset. A profitable business is also an asset, while a business that loses money is considered a liability.
Read more about this topic: Rich Dad Poor Dad
Famous quotes containing the words definition of and/or definition:
“The physicians say, they are not materialists; but they are:MSpirit is matter reduced to an extreme thinness: O so thin!—But the definition of spiritual should be, that which is its own evidence. What notions do they attach to love! what to religion! One would not willingly pronounce these words in their hearing, and give them the occasion to profane them.”
—Ralph Waldo Emerson (1803–1882)
“The definition of good prose is proper words in their proper places; of good verse, the most proper words in their proper places. The propriety is in either case relative. The words in prose ought to express the intended meaning, and no more; if they attract attention to themselves, it is, in general, a fault.”
—Samuel Taylor Coleridge (1772–1834)