How Lack of Financial Discipline Fuels an Explosive Growth of African Government Debt
In his work Rich Dad, Poor Dad , Robert Kiyosaki attempts to dissect the mentality of the poor, the middle class, and the rich. Among all the differences he notes of the three, one is constantly repeated and stands out as pivotal in the difference. The rich, he argues, invests in assets and not liabilities. And when the rich makes these investments, they do so through incomes earned through assets, and not by taking on more liabilities in the form of loans to be repaid. By wisely investing in income-generating assets within their means and then reinvesting resulting incomes in more assets, a small initial capital can quickly turn into a large sum.