Your house is not an asset… it’s a line that stops most people cold. Kiyosaki’s point is that we’ve been sold a definition of wealth that keeps us financially stagnant. Let’s break down why this perspective is so crucial for building real, lasting wealth.
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Meaning
At its core, this quote redefines the word “asset” from an accounting term to a cash-flow term. An asset, in Kiyosaki’s world, isn’t just something of value—it’s something that puts money in your pocket.
Explanation
This is where it gets really interesting, and honestly, it’s a mindset shift that changed everything for me. See, your primary residence is what Kiyosaki calls a liability in disguise. Think about it. Every single month, it costs you money. Mortgage, taxes, insurance, repairs… money flows out. It’s a wonderful place to live, sure, but it’s not working for you financially.
Now, contrast that with a true asset. A rental property that generates positive cash flow after all expenses. A dividend-paying stock. A business. These are things that, month after month, increase your income. They feed you. Your primary residence, on the other hand, you have to keep feeding it. It’s a subtle but monumental difference in how you view your personal balance sheet.
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Wealth (107) |
| Topics | assets (6), money (27) |
| Literary Style | analytical (121), blunt (8) |
| Emotion / Mood | challenging (24), rational (68) |
| Overall Quote Score | 79 (243) |
Origin & Factcheck
This concept is the absolute bedrock of Kiyosaki’s 2017 book, Why the Rich Are Getting Richer. It’s a direct continuation of the ideas he first introduced in Rich Dad Poor Dad way back in 1997. While the quote is often shared in isolation, its power comes from the entire framework he builds around it. And no, he didn’t say your house is worthless—he’s just reclassifying it based on its financial behavior.
Attribution Summary
| Context | Attributes |
|---|---|
| Author | Robert T Kiyosaki (98) |
| Source Type | Book (4032) |
| Source/Book Name | Why the Rich Are Getting Richer (52) |
| Origin Timeperiod | 21st Century (1892) |
| Original Language | English (3668) |
| Authenticity | Verified (4032) |
Author Bio
Born in Hilo, Hawaii, Robert T. Kiyosaki graduated from the United States Merchant Marine Academy and served as a Marine Corps helicopter gunship pilot in Vietnam. After stints at Xerox and entrepreneurial ventures, he turned to financial education, co-authoring Rich Dad Poor Dad in 1997 and launching the Rich Dad brand. He invests in real estate and commodities and hosts the Rich Dad Radio Show. The Robert T. Kiyosaki book list spans personal finance classics like Cashflow Quadrant and Rich Dad’s Guide to Investing, along with educational games and seminars.
| Official Website | Facebook | X| Instagram | YouTube
Where is this quotation located?
| Quotation | Your house is not an asset unless it makes you money |
| Book Details | Publication Year/Date: 2017, ISBN/Unique Identifier: 9781612680811, Last edition: 1st Edition, Number of pages: 256 |
| Where is it? | Chapter 3, Misunderstood Assets, page 45 |