Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money by Robert T. Kiyosaki

Author:Robert T. Kiyosaki [T. KIYOSAKI, ROBERT]
Language: eng
Format: epub, pdf
Tags: BUS050020
ISBN: 9780446515917
Publisher: Business Plus
Published: 2008-03-25T16:00:00+00:00

1. Net worth is often an estimate based upon opinions, not facts. The value of a home is only an estimate. You will not know the true price until the house is sold. This means many people overinflate their home’s estimated value. Only until they sell their home will they know the facts: the real price and the real value. Unfortunately, many people may have already borrowed against the perceived value of their house and may owe more than they can sell the house for.

2. Net worth is often based upon possessions that have a declining value. When I fill out a credit application, I’m allowed to list most of my possessions in the asset column. I’m allowed to list my business suits, shirts, ties, and shoes as assets, just as I can list my cars. You and I know that a used shirt has very little value, and a used car has considerably less value than a new car.

3. Net worth going up is often caused by the dollar going down. Some of the appreciated value of a house is due to the decline in value of the dollar. In other words, the house is not going up in value. It just takes more dollars to buy the same house because the government and central banks keep injecting more funny money into the system to keep the economy afloat, and to keep the feel-good illusion of prosperity alive.

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