A few months ago, I wrote a post about why your house is not an asset.  I recently found the YouTube video below about the very same topic. 

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!

 

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