Page 106 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

I would have lost my $200,000 in cash assets (i.e., gold and silver
certificates), and I would have lost an additional $75,000 due to the instant

depreciation when I drove the car off the lot.
In the chapter on financial IQ #2: protecting your money, I wrote about
how good brokers can make you rich and bad brokers make excuses. The
Bentley Account is an example of a good broker making me rich and happy,

allowing me to afford the luxuries of life. So, keep looking for a good
broker if you don’t already have one.

Assets = Luxury Liabilities

One of the benefits of being an author is that when I want a new liability, I

first write a book, like this one, and the royalties from the book pay for the
liability. The future transaction looks like this:

At this point it might be beneficial to remind you what an asset and a
liability are. In my book Rich Dad Poor Dad I defined them as simply as

this: An asset is something that puts money in your pocket. A liability is
something that takes money out of your pocket. There is nothing wrong
with enjoying liabilities—as long as you continue to pay yourself first and
purchase them through the income generated by your assets. In the example
above I used my assets to purchase my liability, and at the end of the day I

still had my asset and my Bentley.
Examples of other assets’ buying liabilities are shown in the diagram
below.