Assets and Liabilities

Do you know what the difference is between and Asset and a Liability? 

In Robert Kiyosaki's words (author of Rich Dad, Poor Dad) an asset is something that puts money into your pockets and a liability is something that takes money out of your pockets.

So why does it matter? 

The wealthy purchase assets. The poor and middle class purchase liabilities that they think are assets. 

What do you spend your money on? Are you putting it towards assets that pay you or are you purchasing things that drain you? If you'd like to learn more I highly recommend reading Rich Dad, Poor Dad. And if you would like to learn how to have more money available without needing to make more, check out The Big Split Course where I teach you how to improve your finances quickly!