The Power of Investing

Well, I think it’s out of topic, but still, I want to write it.

I want to analyze which type of income is AdSense in cash flow quadrant (wrote by Robert T. Kiyosaki) (Although it has been critized by many people, I still think I'll write it, without telling you to stop working)

But, before that, I’ll tell you about the difference between rich and poor people.

Kiyosaki believes that the thing that makes difference between rich people and poor people is investment. Poor people never bother to invest their money. Rich people used to invest, so that after one point, their passive income will surpass the expenses.


What does investing mean? Investing means “buy” assets. An asset is everything that could make you money. For example, you buy a house, and then you lease the house, so that the house earns you money.

Contrary to asset, liability is everything that takes money from you. For example, you buy a television. Because of the television, you have to pay electricity bill. If you sell the television, the price is cheaper than when you buy it.

Poor people never bother to buy assets. They spending money on expenses and buy more liability. They need to work hard to cover their expenses. If they got raise, they will buy even more liability instead of asset. Because of that, they should work even harder to cover the expenses.

Unlike poor people, rich people always try to buy asset. They buy asset after another asset, until those assets make them more money than they need to cover their expenses. They could live, even if they don’t go to work. Money is not a problem for them, because of that they can concentrate to reach their dream instead of thinking of financial problem.

Assuming you are now working on a company. Should you stop to go to work? No! If you want, you do it, but if you don't want to, don't do it. The key is just investing, not resigning from your company.