Assets vs. Liabilities
Something that puts money in your pocket
What is: an asset
According to "Rich Dad Poor Dad," where is financial education primarily taught?
What is: at home
What is passive income?
What is: income earned from assets, requiring little to no effort to maintain
According to "Rich Dad," what is the mindset that keeps people poor?
What is the scarcity mindset, or fear of taking risks
What is the primary advantage of investing in assets?
What is generating passive income
Something that takes money out of your pocket
What is: a liability
Why does "Poor Dad" struggle financially despite having a good job?
What is: because he lacks financial education and understanding of assets and liabilities
What is earned income?
What is: income received from working a job
What attitude does "Rich Dad" have towards mistakes and failures?
What is viewing them as learning opportunities
According to "Rich Dad," what is a key characteristic of successful entrepreneurs?
What is the willingness to take calculated risks
According to "Rich Dad", a house is considered this (asset/liability)
What is: a liability
What is the first step to financial independence according to Kiyosaki?
What is: understanding the difference between assets and liabilities
What is portfolio income?
What is income from investments such as stocks, bonds, and real estate
How does "Rich Dad" define wealth?
What is the number of days you can survive without working
What is the importance of diversification in investing?
What is reducing risk by spreading investments across various assets?
Name 2 examples of personal liabilities
What is: a boat, a car, a home, credit card debt, college loans
What does Kiyosaki suggest you should do instead of saying "I can't afford it"
What is: asking, "How can I afford it?" to encourage creative thinking
Name 3 examples of passive income
What is:
Investment Income (Dividend stocks, Bonds (including bond ladders and municipal bonds), High-yield CDs or savings accounts, Preferred stock, Annuities, Closed-end funds)
Real Estate Income (Rental income (including short-term rentals), Real Estate Investment Trusts (REITs), Crowdfunded real estate, Renting out a parking space)
Online Business (Affiliate marketing, Creating a blog or YouTube channel, Sponsored posts on social media, Buying a blog, Creating an app, Website display ads)
Lending (Peer-to-peer lending, Buying small-business bonds)
Creative Products (Write an e-book, Create an audiobook, Sell photography online, Sell designs online, Create a course)
Physical Product Sales (Flip retail products, Art and design)
Digital Product Sales (Other digital products (such as software, templates, prints))
Advertising (Advertise on your car, Vehicle ad space)
Licensing and Royalties (Licensing music, Buying royalties)
Rental Services (Renting out useful household items, Renting out your home short-term)
What is the significance or definition of the phrase "The Rat Race" in the book?
What is the endless cycle of working for money without achieving financial freedom?
What does Kiyosaki mean by "letting your money work for you"?
What is investing in income-generating assets rather than solely relying on earned income
What differentiates a rental property from a personal residence in terms of assets and liabilities?
What is: a rental property generates positive cash flow making it an asset, while a personal residence is typically a liability
How does "Rich Dad" view the role of formal education in achieving financial success?
What is: that formal education is important but not sufficient for financial success; financial education is also necessary
How does "Rich Dad" differentiate between job security and financial security?
What is job security is dependent on one's employer, while financial security is built through income-generating assets
How does Kiyosaki describe the importance of one's mindset in achieving financial success?
What is that a positive, proactive mindset focused on learning and growth is crucial for financial success
According to "Rich Dad," why is starting your own business a recommended path to financial freedom
What is because it allows you to create and control assets that generate income