8 Things the Middle Class Thinks Are Assets But Are Not
5th August 2024
Understanding the difference between assets and liabilities is crucial for building wealth and achieving financial freedom. An asset puts money in your pocket, generating income or appreciating in value over time.
However, many middle-class individuals and families mistakenly categorize some possessions as assets that drain their finances. This misconception can lead to financial stress and hinder long-term wealth accumulation.
Robert Kiyosaki, in his monumental Rich Dad, Poor Dad, points out that an asset is something that puts money into your pocket, while anything that takes money out of your pocket is a liability. He says “Buy assets, rent liabilities”.