Understand the difference between Assets (things that put money in your pocket e.g., rental properties, stocks, bonds, intellectual property) and Liabilities (things that take money out of your pocket e.g., mortgages, car loans, credit card debt) is crucial for building wealth.

It is important to learn Financial Education. Schools teach us professional and scholastic skills but they failed to teach us Financial Literacy.

Rich people invest their income in assets (e.g., rental income, dividends, and royalties). And use the interest to spend on expenses. This process makes them wealthy.

Kiyosaki shares the story of wealthy businessmen from the 1920s who lost their fortunes due to a lack of financial intelligence. He emphasizes that intelligence solves problems and produces money, while money without financial intelligence is soon gone.

Middle Class and Poor people spend their income in liabilities which makes them depended on their jobs and they trap in the ‘Rat Race’.

Don't follow social rules. Question your financial habits and control your money.

House is a liability. Kiyosaki believes that a house is an asset. He explains that a house often drains money through mortgage payments, property taxes, maintenance, and utilities.

Don't let increasing income lead to increasing expenses.