“Distinguish between assets and liabilities.”
— Robert Kiyosaki
Simplified Meaning:
It’s important to know the difference between things that help you and things that can hurt you financially. For example, an asset is something valuable like a house or a savings account. These can give you more money over time or increase in value. On the other hand, liabilities are things that take away your money, like a credit card debt or a car loan, which you have to keep paying back. Imagine you have a friend who spends all their money on expensive clothes (a liability) instead of saving or investing in something like education (an asset). Over time, the clothes may not have value while the education could help them earn more money. By focusing more on assets than liabilities, you can gradually become more financially stable and successful. So, next time you spend money, think about whether it’s going to help you in the long run or just cost you more in the future.
