The Fundamentals of Financial Competence


The fundamentals of financial competence are consisted in mastering one and the only rule:

It is necessary to understand the difference between assets and liabilities, and acquire assets.

According to Robert Kiyosaki, following this rule can help everybody become rich and relieve from financial difficulties.

This rule is the first and the only one. Perhaps it seems absurdly simple but a lot of people don’t understand how important it is. Many people have financial hardships just because they do not understand the difference between assets and liabilities.

Rich people acquire assets. Poor people and middle class buy liabilities and see them as assets.

What are assets and liabilities and what is the difference between them?

Asset is what yields money.

Liability is what takes money from you.

These are the fundamentals of financial competence – the basis of your future financial success. If you have known it, sorry. Otherwise, let me congratulate you on the fact that you have just acquired the fundamentals of funancial competence. However, the knowledge is death until you come it into you consciousness and start doing something. What assets you have and what you can create or acquire?

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