rich-dad-poor-dad-pdf

Rich Dad Poor Dad

This is the cash-flow pattern of an asset:

The top part of the diagram is an Income Statement, often called
a Profit-and-Loss Statement. It measures income and expenses: money
in and money out. The lower part of the diagram is a Balance Sheet.
It’s called that because it’s supposed to balance assets against liabilities.
Many financial novices do not know the relationship between the
Income Statement and the Balance Sheet, and it is vital to understand
that relationship.

So as I said earlier, my rich dad simply told two young boys that
“assets put money in your pocket.” Nice, simple, and usable.

Assets

BALANCE SHEET

Liabilities

Income

Expenses

INCOME STATEMENT