The rich are rich because they buy assets Meaning Factcheck Usage

Context

In the book, Kiyosaki is hammering home the point that the old advice—”go to school, get a job, save money”—is fundamentally broken. He positions this “assets first” idea as the central strategy the wealthy use to navigate modern financial systems, insulating themselves from risk and taxes while their assets work for them 24/7.

Usage Examples

I use this all the time when talking to people about money. For the young professional just starting out, it’s about prioritizing a Roth IRA over a flashy new lease payment. For the small business owner, it’s about reinvesting profits into marketing or equipment before taking a massive bonus. You can even use it for a windfall – instead of blowing a tax refund, use it to buy a asset that pays you. The audience is anyone who earns an income but feels like they’re on a hamster wheel.

To whom it appeals?

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FAQ

Question: What exactly counts as an “asset” in this context?
Answer: Anything that puts money *in* your pocket without you trading time for it. Think rental properties, dividend stocks, bonds, a business that doesn’t require your day-to-day involvement, intellectual property like a patent or a book. Your primary residence? Usually not, because it takes money out for maintenance and taxes.

Question: So does this mean I can never buy anything nice?
Answer: Not at all! It’s about the *order*. It’s the discipline of funding your assets first, and then using the *income from those assets* to enjoy the luxuries. It delays gratification, but it makes the gratification sustainable and guilt-free.

Question: Is this realistic for someone with a low income?
Answer: It’s a mindset that scales. The principle is the same whether you’re investing $50 or $50,000. It’s about building the habit of “paying your asset column first” before your lifestyle expenses. Start small. The amount is less important than installing the correct financial operating system in your brain.