4 Comments

  1. Fadi

    I remember struggling with this concept when i first read it. the idea that my house is not an asset was hard to accept.
    however it does make sense, and asset will generate cash flow that you can use to acquire new assets that generate more cash flow. that is the formula suggested by rich dad for financial freedom.

    thanks for an interetsing post : )

    Fadi

    • Gomer Magtibay

      You’re welcome, and thanks for reading.

      The principle that made that house an asset or a liability is the same principle at work when evaluating a business. “Cash flow”. When more cash is flowing out than flowing in, then the business becomes a liability to you. You either fix it by working harder, putting out more promo, or you close the business. Same thing applies in online business. I’m sorry to say that, but it is.

      Now, to win your battle in asset vs liability, then before you set out on starting an online business, plan everything first. Have a plan on how will you attack the market, so that you turn a profit early on. If you don’t do it, then soon you will find yourself spending more money than making.

  2. Will G

    Great article, thank you. 

    There is no doubt that Robert Kiyosaki has by far gone far and beyond teaching and instructing people when it comes to financial matters.

    His books give great advice on where one could begin and all of the ways one can grow into what they may dream of. 

    Best man to help lay down pathways.

    • Gomer Magtibay

      You’re welcome. 

      Do you also have an online business? How do you find your online business in the “Asset vs Liability” perspective? 

      I hope, it falls on the asset column, and not in the liability column.

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