Assets and Liabilites

[Maxwell Emerson]

I just finished reading Rich Dad Poor Dad and I loved every bit of it.  I don't necessarily agree with every point he makes, but it's been an eye opening book and has made opened me up to many more schools of thought!  I loved what I learned from the book, but I wanna hear from members new and old on what their take is.  

First, what do you think about Robert's stance on Assets and Liabilities?  When I first bought my house, I thought I was investing in an asset.  I thought it was a smart investment in a nice neighborhood in a nice town.  I was able to buy the house at a price that I was comfortable with, with the intention of doing a live in flip and renting out the house when I move.  While I still feel like I did the right thing and that I'm following the right steps to where I eventually want to get to, I think Robert's statement about my house not being an asset is really interesting.  I understand where he is coming from, with the simple definition that a liability is anything that makes cash flow out of my pocket, then my house is definitely a liability.  But I still see my house as an asset seed, it's an investment that isn't cash flowing for me right now, but I've planted the seed and I'm going to keep watering it until it finally grows into a cash flowing investment.  What are your thoughts on whether a house (not a rental) is an asset or a liability?

After reading Rich Dad Poor Dad, and playing cash flow a few times, I've been wondering what other people are investing in?  What are you adding to your asset column, and what are you staying away from?  I know for me, I want to add single family homes and plexes to my portfolio and to build my base.  I like doing projects around the house, and I know my wife loves making houses cute and she has great interior design tastes.  What are your investment plans and strategies?

[Neil Crook]

I've just finished the audio version of the book and ever since I have been walking around with a slight smug feeling I know more than the average Joe. It's totally true (in my opinion) in his teachings, which they are. My father was a successful accountant but taught me nothing really about money other than don't spend more than you can afford, get a good education, get a good job and then buy a house, car and then work till your 65.... 

Rich Dad is totally worth the read just to open your mind to the possibilities! My wife and I are now on our investing road and working hard to buy assets, our house is not one of them. We own it in full, but this is still a liability. Watching my friends and my sister increase their mortgage to make an extension or buy a new kitchen, so the house is worth more hurts me to see! If only they knew! 

We are purchasing low end small houses for rent, because the apartment market vs return is not worth investing in this area now. 

Just working on the financials for my FIRE number, looks high but you need big goals :-)