This is also one of my question in life. I have been working for almost 13 years and yet there are lots of things that I need to accomplish to become a rich man. I am rich spiritually but I think financial resources should follow. Today during my reading of the Cash Flow Quadrant by Robert Kiyosaki, he mentioned that we need to start building list of assets that brings income and not expenses.
What he mean, is that our assets should make cash-in and not cash-out. As an example a loaned car is not an asset but liabilities if it is not being use to earn but only for leisure and comfort. However if this loaned cars will be used to fetch kids at school and it’s earnings will be more than that of it’s monthly payment then it can be called as an asset and not a liabilities.
He is right, in all our expenses its should add up in our income and not drawing out from our income. Just imagine if we have lots of assets that making money for us, then it can be called a passive income. A small income is still an income.
I will update you on things that I will do in the future on how I can acquire a new income generating assets.
By the way I also learn that there are 2 types of Debt, a Good Debt and Bad Debt. Perhaps I will have to discuss those things in my next post.
Update : Difference of Bad Debt and Good Debt