ell　them　to　the　people　playing　it　safe。　I　am　not　saying　don't　buy　a　house。　I　am　saying；　understand　the　difference　between　an　asset　and　a　liability。　When　I　want　a　bigger　house；　I　first　buy　assets　that　will　generate　the　cash　flow　to　pay　for　the　house。

My　educated　dad's　personal　financial　statement　best　demonstrates　the　life　of　someone　in　the　rat　race。 His　expenses　seem　to　always　keep　up　with　his　ine；　never　allowing　him　to　invest　in　assets。　As　a　result；　his　liabilities；　such　as　his　mortgage　and　credit　card　debts　are　larger　than　his　assets。 The　following　picture　is　worth　a　thousand　words：

Educated　Dad's　Financial　Statement

Ine=Expense

Asset　《　Liability

My　rich　dad's　personal　financial　statement；　on　the　other　hand；　reflects　the　results　of　a　life　dedicated　to　investing　and　minimizing　liabilities：

Rich　Dad's　Financial　Statement

Ine　》　Expense

Asset　》　Liability

A　review　of　my　rich　dad's　financial　statement　is　why　the　rich　get　richer。　The　asset　column　generates　more　than　enough　ine　to　cover　expenses；　with　the　balance　reinvested　into　the　asset　column。　The　asset　column　continues　to　grow　and；　therefore；　the　ine　it　produces　grows　with　it。

The　result　being：　The　rich　get　richer！

Why　the　Rich　Get　Richer

Ine　…》　Assets　…》　More　Ine

Expenses　are　low；　Liabilities　are　low

The　middle　class　finds　itself　in　a　constant　state　of　financial　struggle。　Their　primary…　ine　is　through　wages；　and　as　their　wages　i