Periodic Table of Frameworks · Decision · Person

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2 parts

Assets and liabilities

Robert Kiyosaki

You want to know if a thing is making you rich or making you look rich. The problem is the bank form lies. One question: does it put money in, or take money out. Call a liability an asset and you will decorate your way into a job you cannot quit. Name it honestly and the next buy is a decision, not a costume.

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In one line

If it puts money in your pocket it is an asset. If it takes money out it is a liability. The name on the bank form does not matter.

Use this on a thing. It answers: How do you decide?

The other half

Cashflow quadrant

The quadrant is who is earning. Asset or liability is what the money is pointed at.

How this talks to the others

  • Leads into

    7 Powers

    A power is an asset that compounds. A vanity metric is a liability dressed as a moat.

Seminars