Now, accounting is possibly the most boring subject in the worldIt also could be the most confusingBut if you want to be rich, long term, it could be the most important subjectThe question is, how do you take a boring and confusing subject and teach it to kids? The answer is, make it simpleTeach it first in pictures
My rich dad poured a strong financial foundation for Mike and meSince we were just kids, he created a simple way to teach usFor years he only drew pictures and used wordsMike and I understood the simple drawings, the jargon, the movement of money, and then in later years, rich dad began adding numbersToday, Mike has gone on to master much more complex and sophisticated accounting analysis because he has had toHe has a billion-dollar empire to runI am not as http://www.enluxury.com/categorys_12_Earrings_1.html" target="_blank sophisticated because my empire is smaller, yet we come from the same simple foundationIn the following pages, I offer to you the same simple line drawings Mike's dad created for usThough simple, those drawings helped guide two little boys in building great sums of wealth on a solid and deep foundationYou must know the difference between an asset and a liability, and buy assetsIf you want to be rich, this is all you need to knowThis may sound absurdly simple, but most people have no idea how profound this rule isMost people struggle financially because they do not know the difference between an asset and a liability
"Rich people acquire assetsThe poor and middle class acquire liabilities, but they think they are assets"
When rich dad explained this to Mike and me, we thought he was kiddingHere we http://www.muluxury.com/scategory_30_Cartier-Watches.html" target="_blank were, nearly teenagers and waiting for the secret to getting rich, and this was his answerIt was so simple that we had to stop for a long time to think about it
"What is an asset?" asked Mike
"Don't worry right now," said rich dad"Just let the idea sink inIf you can comprehend the simplicity, your life will have a plan and be financially easyIt is simple; that is why the idea is missed
"You mean all we need to know is what an asset is, acquire them and we'll be rich?" I asked
Rich dad nodded his head
"If it's that simple, how come everyone is not rich?" I asked"Because people do not know the difference
between an asset and a liability
I remember asking, "How could adults be so sillyIf it is that simple, if it is that important, why would everyone not want to find out?"
It took http://www.enluxury.com/scategory_30_Cartier-Watches.html" target="_blank our rich dad only a few minutes to explain what assets and liabilities were
As an adult, I have difficulty explaining it to other adultsWhy? Because adults are smarterIn most cases, the simplicity of the idea escapes most adults because they have been educated differentlyThey have been educated by other educated professionals, such as bankers, accountants, real estate agents, financial planners, and so forthThe difficulty comes in asking adults to unlearn, or become children againAn intelligent adult often feels it is demeaning to pay attention to simplistic definitions

Rich dad believed in the KISS principle-"Keep It Simple Stupid"-so he kept it simple for two young boys, and that made the financial foundation strong
So what causes the confusion? Or how could something so simple be so http://www.naluxury.com/scategory_11_Prada.html" target="_blank screwed up? Why would someone buy an asset that was really a liabilityThe answer is found in basic education
We focus on the word "literacy" and not "financial literacy What defines something to be an asset, or something to be a liability are not wordsIn fact, if you really want to be confused, look up the words "asset" and "liability" in the dictionaryI know the definition may sound good to a trained accountant, but for the average person it makes no senseBut we adults are often too proud to admit that something does not make sense
As young boys, rich dad said, "What defines an asset is not words but numbersAnd if you cannot read the numbers, you cannot tell an asset from a hole in the ground
"In accounting," rich dad would say, "it's not the numbers, but what the numbers are http://www.naluxury.com/scategory_21_Tiffany-Jewelry.html" target="_blank telling