You can see the dilemma. Most would list their Mercedes as an asset or something of value. However, I would list the Mercedes as a liability because every month it takes money out of your pocket. “But it’s paid for!” you argue. The car loan may be paid for, but what about gasoline, tune-ups and repairs, and insurance? The biggest fight we get at The Rich Dad Company is when we tell people your home, your personal residence, is not an asset. We received a lot of flack for that, especially when times were booming and people were taking out loans against their home, sometimes two or three times. It wasn’t until the real estate market crashed and people found out that they owed more on their house than it was worth before they started to understand their home was not an asset. Robert Kiyosaki
Posted on: Mon, 07 Oct 2013 23:40:28 +0000