Posted by Steve on May 14, 1999 at 19:41:37:
I have just been to an intense 2 day seminar taken by RK, in which he again went through his ideas (as written in RDPD and Cashflow Quadrant). I think he is trying to educate the masses about the differences between his definition of assets (that feed you + generate cashflow) and liabilities (that eat you + take money away from you).
Unfortunately, most people fund too much equity in their family home (a liability by RK definition as it generates only -ve cashflow until sold). They then have no money to invest because there is a tendancy to fund credit cars and personal loan payoffs with the home equity. This creates a spiral of money troubles and in the end they may own their house but have no passive income for retirement.
RK’s number one teaching is to become financially intelligent, which he defines as thoughts and actions that improve (financial) survival. Or, how to make it AND keep it.
It appears that people who use this site are well on the way to achieving that goal! p.s. RK recommended this site at the seminar.
Hope that everything is going well with your expected child.