第12部分(第4/7 頁)

en　invested　instead　of　paying　for　high…maintenance　expenses　related　directly　to　the　home。

3。　Loss　of　education。　Too　often；　people　count　their　house；　savings　and　retirement　plan　as　all　they　have　in　their　asset　column。　Because　they　have　no　money　to　invest；　they　simply　do　not　invest。　This　costs　them　investment　experience。 Most　never　bee　what　the　investment　world　calls　a　〃sophisticated　investor。〃　And　the　best　investments　are　usually　first　sold　to　〃sophisticated　investors；〃　who　then　turn　around　and　sell　them　to　the　people　playing　it　safe。　I　am　not　saying　don't　buy　a　house。　I　am　saying；　understand　the　difference　between　an　asset　and　a　liability。　When　I　want　a　bigger　house；　I　first　buy　assets　that　will　generate　the　cash　flow　to　pay　for　the　house。

My　educated　dad's　personal　financial　statement　best　demonstrates　the　life　of　someone　in　the　rat　race。 His　expenses　seem　to　always　keep　up　with　his　ine；　never　allowing　him　to　invest　in　assets。　As　a　result；　his　liabilities；　such　as　his　mortgage　and　credit　card　debts　are　larger　than　his　assets。 The　following　picture　is　worth　a　thousand　words：

Educated　Dad's　Financial　Statement

Ine=Expense

Asset　《　Liability

My　rich　dad's　personal　financial　statement；　on　the　other　hand；　reflects　the　results　of　a　life　dedicated　to　investing　and　minimizing　liabilities：

Rich　Dad's　Financial　Statement

Ine　》　Expense

Asset　》　Liability

A　review　of　my　rich　dad's　financial　statement　is　why　the　rich　get　richer。　The　asset　column　generates　more　than　enough　ine　to　cover　expenses；　with　the　balance　reinvested　into　the　asset　column。　The　asset　column　continues　to　grow　and；　therefore；　the　ine　it　produces　grows　with　it。

The　result　being：　The　rich　get　richer！

Why　the　Rich　Get　Richer