Richdads-CASHFLOW-Quadrant-

Chapter Thirteen
I use the age 45 because it is halfway between 25, the age when
most people begin to work, and 65, the age when most people plan on
retiring. By age 45, if a person has managed their cash flow properly,
their asset column should be longer than their liability column.
This is a person who takes risks, but not excessive risk, and is in the
upper 10 percent of the population. But if they do what the other 90
percent of the population does, which is mismanage their cash flow and
not know the difference between an asset and a liability, then at age 45,
their financial picture looks like this:
Job
Income
Expenses
Assets
Liabilities
These are the people who most often say, “Investing is risky.” For
them, it is risky, but not because investing is risky. It is their lack of
knowledge and formal financial training that makes investing risky.
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