[rovicer20]

Any one knows the way how to increase financial intelligency(moral) without only solution: work hard, save and borrow.

Thanks

Rov

[darren]

"Without"? That implies the idea of studying, working hard, saving up and investing in a house is financially intelligent. According to the author of Rich Dad, Poor Dad, this means of living is not being financially intelligent.

He talks about buying assets that generates revenue. A house is not an asset unless you buy it outright (no mortgage). It is a liability. If you just stop working, all assets generate income, all liabilities create expense. So where does the house sit? Many accountants will be very unfamiliar with this mode of thinking, of course, but it certainly is food for thought. He talks about making money work for you rather than working for money.

According to the author, someone once defined wealth as how long you can live without having to work to earn a living...

[rovicer20]

Thanks Darren for that information but,
something I dont really understand is,
if you buy a house, is it better to use it as a business in order to get some sort of income out of it instead of using it as a home?
Cause he says that dont create or avoid expences, and a home is an expence.
Then when will it be the time to own a house as an expence?
I really dont understand the point, can you help me to understand it please

Thanks for your time

j

[darren]

well, that's it. a home is an expense. unless you can rent out the rooms, for instance, or rent out the entire building and live in a flat!