Things which bring you money

"There are 2 types of things in the world when it comes to money - things which bring you money (Assets) and things which take money away from you (Liabilities)"

And so the goal of a successful person is to build and accumulate more and more Assets and to keep the Liabilities to the minimum. That does not mean that one will never use liabilities. Borrowing money is a liability but can be used as a temporary tool to create, build or accumulate certain assets. That said, let's keep this simple for now.

• If you buy a house with a mortgage then every month this house will be taking money away from you.
• If you buy a car, then again, every month the car will be taking money away from you.
• If you buy something like a TV or a new coat then these are comfort or pleasure items, they take money away from you for the purchase and they can also take time away from you (e.g. TV, phone), but they definitely do not bring you money.

On the other hand you have things which bring you money every month and these are called Assets. Rich and successful people aim to get more and more Assets because this will enable them to earn more and more income every month even if they do nothing. And moreover, later down the road, they can pass on their Assets to their children who can use this wealth to create an even bigger empire. That's how, for example, royal families are so rich and powerful. Their wealth and education / knowledge has been passed on generation to generation.

Now there are 3 types of Assets as Robert Kiyosaki explains.

• Business
• Real Estate
• Paper

Business is the hardest one, but has the highest reward potential. This is because you have to be actively involved in setting it up and running it up to the point where you can assign someone else to manage it.

Real Estate is less difficult than business but still requires your attention and actions to maintain it and keep it running. It has less reward potential than business but more than paper.

Paper is a general word to describe all sort of financial instruments like shares, bonds, and any other financial instrument which pays you monthly or annually depending on your investment. These are easier to maintain and will give the least reward compared to business or real estate. Note here we are not talking about day trading or short term manipulations, we are talking about long term investment which pays dividends or interest or whatever other payment.

Rich and Successful People's Mentality

Their aim, as mentioned, is to gather more and more assets. You can start with smaller things naturally if you don't have a lot of money, but there is always something you can start accumulating which can begin bringing you whatever amount of money. And, in a way, it almost doesn't matter where you start or how much you earn as long as every month you keep creating more and more and earning more and more.

Here you will make decisions like:

• I will not buy that nice house i wanted and will live in a smaller place and with the difference in cash i will buy more Assets. 
• I will not buy my dream car now and will buy a second hand not-so-awesome car which is just enough to get me from A to B but with the difference in cash i will build or buy more Assets.
• I will not buy a new sofa or whatever new furniture just to impress people who visit my house and with that money i will get more Assets.
• Etc.

Every month, every week, every day you must make the correct choices which will result in you accumulating more and more assets and growing your income!