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The monetary stream defines, is The given thing an active or a passive

Continuing simple, but extremely important lesson, the rich daddy has told: itthe Direction of a monetary stream defines, than is the given thing it an active or a passiveit.

To it he has added: itActives force money to flow in a column of incomesit (see the scheme).

Then the rich daddy has told: "Passives force money it and to follow from a column of expenses".

The passive is everything that takes out money from your pocket. It means that the private-type dwelling it dream of middle class, is a passive, than an active is more often. If the person has leased this house and the income of rent has exceeded all expenses the same house moves from a column of passives to a column of actives.

Transformation of a private-type dwelling into the rent property

Still the young boy I have acquired that the house can be both an active, and a passive. This simple small lesson has changed all my life, as me

It was already impossible to force to believe that my house is an active. Otherwise I simply would go in the footsteps of my parents and have bought the house, the car, furniture, the TV and jewelry, minutes without doubting that I buy actives. I mum with the daddy sincerely believed that buy actives, but actually they have been made a fool by popular financial myths of an average and poor class.

Some of you speak: "And what, if I do not have mortgage on the house? What, if in this plan my house is pure as glass?" Or: "And how about my car? Unless it not an active?"

Answers to these questions are given in "the Rich daddy, the poor daddy" both other my books and audiocourses. But basically the answer always same: only the monetary stream defines, than is the given thing - an active or a passive. In other words, the house without debts all the same can be a passive because at all debts is defined, is it an active or a passive is is defined by a direction of a monetary stream between the report on incomes and balance.

The purpose of this book not in discussing a question on that, is your house an active or a passive. It consists in proving that millions people have threatened the life on pension as did not buy actives. Millions and millions workers examine extracts from the pension bills and are surprised, where their money has got to. In other words, in what party the monetary stream flew? In millions cases the monetary stream went not to that party, and it means that they invested in passives which considered as actives. ________________

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