The document discusses the concepts of assets and liabilities from the perspective presented in the book "Rich Dad, Poor Dad". An asset is traditionally defined in accounting as something that generates future economic benefits, while a liability is an obligation that requires money to be paid out in the future. However, the book provides an alternative view of an asset as something that generates a positive cash flow and income, while a liability generates a negative cash flow and expenses. It suggests determining if a house is an asset or liability based on comparing its costs to potential rental income it could generate. The document concludes by summarizing some of the book's suggestions, such as focusing on assets first and letting money work for you.

1. Your House: Asset or Liability ?
from <<Rich Dad, Poor Dad>>
Presented By Wenbin
July, 2009

2. Agenda
 Asset and Liability: Concept in Accounting
 Asset and Liability: New perspective from Rich Dad, Poor Dad
 Balance Sheet vs. Income Statement
 What’s the criteria to determine
 Suggestions from the Book
 Discussion

3. Asset and Liability--Accounting
•Asset
●
Something possessed by a business entity from which future economic
benefits may be obtained.
Any item of economic Value owned by an individual or corporation
●
•Liability
●
A liability is defined as an Obligation of an entity arising from
past transactions or events, the settlement of which may result in the
transfer or use of assets, provision of services or other yielding of
economic benefits in the future.

4. Asset and Liability--Rich Dad , Poor Dad
•Asset
●
Definition: Puts Money in Your Pocket
●
Feature : Positive Cash Flow and Generate Income
●
Examples: Stocks, bonds, notes, real estate, business, IP etc.
•Liability
●
Definition: Takes Money away from You
●
Feature : Negative Cash Flow and Generate Expense
●
Examples: Mortgage, car loan, credit cards, school loans etc.

5. Balance sheet vs. Income Statement
Balance Sheet
Assets Liabilities
Income Expense
Income Statement

6. What’s the criteria to determine
•Your house is NOT paid off :
●
More money out than renting income---Liability
●
Less money out than renting income--- Asset
•Your house is paid off:
●
You are having the house as residence--Liability
●
You paid less money out than your renting income--Asset
Income vs. Expense !!

7. Suggestions from the Book
•Asset always comes first .
●
It is never too late to start building your financial empire
• Let Money Work for You.
●
Every RMB is an employee. They works to bring more RMB while you’re asleep
• Invest in Yourself !
●
Work to learn: manage people/biz system/cash flow etc
• Always Prepare to Run Your Own Business

8. Make Your Dream Comes
True !!