The primary cause of financial struggle is simply not knowing the difference between an asset and a liability. The cause of the confusion is found in the definition of the two words. If you want a lesson in confusion, simply look up the words "asset" and "liability" in the dictionary.

Now it may make sense to trained accountants, but to the average person, it may as well be written in Mandarin. You read the words in the definition, but true comprehension is difficult.

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

"This is Cash Flow pattern of a liability."