1) Assets vs. liabilities: assets put money in your pocket even when on vacation. Liabilities take money out of your pocket, e.g., your house is a liability
2) Wealthy buy assets first, and then let assets buy luxuries from the surplus cash flow.
3) Wealthy people continuously increase their assets by reinvesting their surplus cash flow in more assets.
4) Three primary asset classes: Real Estate, Businesses, and Paper assets (stocks bonds notes, etc)
5) Cash Flow is more important than Net Worth. Net Worth is to use it you have to spend it, then it is gone. Cash Flow is like power that can be constantly replenished.
6) The rich don’t work for money, they work for assets.
7) learn how to use the tax laws. Passive income is taxed less, and it’s also a result of cash-flowing assets, not selling your time as an employee.; the majority percent of the tax law is written to help you reduce your taxes, therefore understand how to use it!
