ough　pictures；　it　may　be　easier　to　understand　my　definitions　in　words。

An　asset　is　something　that　puts　money　in　my　pocket。

A　liability　is　something　that　takes　money　out　of　my　pocket。

This　is　really　all　you　need　to　know。　If　you　want　to　be　rich；　simply　spend　your　life　buying　assets。　If　you　want　to　be　poor　or　middle　class；　spend　your　life　buying　liabilities。　It's　not　knowing　the　difference　that　causes　most　of　the　financial　struggle　in　the　real　world。

Illiteracy；　both　in　words　and　numbers；　is　the　foundation　of　financial　struggle。　If　people　are　having　difficulties　financially；　there　is　something　that　they　cannot　read；　either　in　numbers　or　words。　Something　is　misunderstood。　The　rich　are　rich　because　they　are　more　literate　in　different　areas　than　people　who　struggle　financially。 So　if　you　want　to　be　rich　and　maintain　your　wealth；　it's　important　to　be　financially　literate；　in　words　as　well　as　numbers。

The　arrows　in　the　diagrams　represent　the　flow　of　cash；　or　〃cash　flow。〃　Numbers　alone　really　mean　little。　Just　as　words　alone　mean　little。　It's　the　story　that　counts。