ntants　and　financial　professionals　do agree　with　the　definitions；　but　these　simple　drawings　were　the　start　of　strong　financial　foundations　for　two　young　boys。

To　teach　pre？teen　boys；　rich　dad　kept　everything　simple；　using　as　many　pictures　as　possible；　as　few　words　as　possible；　and　no　numbers　for　years。

〃This　is　the　Cash　Flow　pattern　of　an　asset。〃

The　above　box　is　an　Ine　Statement；　often　called　a　Profit　and　Loss　Statement。　It　measures　ine　and　expenses。　Money　in　and　money　out。　The　bottom　diagram　is　the　Balance　Sheet。　It　is　called　that　because　it　is

supposed　to　balance　assets　against　liabilities。　Many　financial　novices　don't　know　the　relationship　between　the　Ine　Statement　and　the　Balance　Sheet。　That　relationship　is　vital　to　understand。

The　primary　cause　of　financial　struggle　is　simply　not　knowing　the　difference　between　an　asset　and　a　liability。　The　cause　of　the　confusion　is　found　in　the　definition　of　the　two　words。　If　you　want　a　lesson　in　confusion；　simply　look　up　the　words　〃asset〃　and　〃liability〃　in　the　dictionary。

Now　it　may　make　sense　to　trained　accountants；　but　to　the　average　person；　it　may　as　well　be　written　in　Mandarin。　You　read　the　words　in　the　definition；　but　true　prehension　is　difficult。

So　as　I　said　earlier；　my　rich　dad　simply　told　two　young　boys　that　〃assets　put　money　in　your　pocket。〃　Nice；　simple　and　usable。

〃This　is　Cash　Flow　pattern　of　a　liability。〃

Now　that　assets　and　liabilities　have　been　defined　thr