Richdads-CASHFLOW-Quadrant-

CASHFLOW Quadrant
flowing, you’ll notice that they’ll get your savings anyway. The money
you could be saving in your asset column is flowing instead out of your
liability column in the form of interest payments on your mortgage. This
ends up in the bank’s asset column. The cash-flow pattern looks like this:
YOUR FINANCIAL STATEMENT
INCOME STATEMENT
Income
YOUR BANK’S FINANCIAL STATEMENT
INCOME STATEMENT
Income
Expenses
Expenses
Your mortgage
interest
BALANCE SHEET
Assets
Liabilities
BALANCE SHEET
Assets
Liabilities
Your
mortgage
Your
mortgage
That’s why they don’t need the government to give you a tax
incentive to save. They’ll get your savings anyway in the form of
interest payments on debt.
Politicians aren’t about to mess with the system because the banks,
insurance companies, building industry, brokerage houses, and others
contribute a lot of money to their campaigns, and the politicians know
the name of the game.
The Name of the Game
In 1974 my rich dad was upset because the game was played
against me, and I didn’t know it. I had bought this investment
property and had taken a losing position, yet I’d been led to believe
it was a winning position.
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