In fact, when Robert Kiyosaki’s name was first mentioned here, I posted a message which was pretty favorable to his ideas, in spite of his pro-MLM writings.
His credibility has waned somewhat in my eyes as a result of all the things I’ve read about him and his work since then.
One thing I believe he writes
about is his feeling that a house is not an asset, but a liability, because of all the money that must be put into it – from the mortgage to maintenance. At first, I thought that was an unusual idea with some merit.
I have since reached the conclusion that his assessment of home ownership is not correct. Yes, the mortgage is an expense, and painting the house is an expense. All those other maintenance and upgrade costs are expenses, too. But the house, ITSELF, is an asset. It CERTAINLY isn’t a liability – unless, of course, it’s on fire with you in it!
Those things that enhance your lifestyle, in a real way, are assets. Liabilities are those expenses that do not enhance the way you live. Heating your home is an asset. No, it does not make money for you, but who cares when it’s 20 degrees outside!
His view of assets (things that earn money for you) and liabilities (things that don’t) seems a bit one-dimensional to me, now.
And, unfortunately, that may be one of the reasons he appeals to MLM organizations.