Rich Dead Poor Dead in a short video

learn this vocabulary: assets, liabilities, income, expenses, exchange risk, default risk .

A smart task in life is to work towards acquiring assets.

Financial Statement with explanations:

• assets: an asset is something that makes money every period.
  • passive income is here
• liabilities: a liability is something that takes money every period.
  • the house is here
  • money
  • things in stock
  • loan for passive income is here

Cash Flow Statement:

• incomes: is variable income
  • income from passive income is here
  • income from a job is here
• expenses: is a variable expense
  • expense for the loan is here

Risk:

• exchange risk – price may change and lower the value
  • the house is here
  • money
  • things in stock
• default risk – something may disappear and become insolvent
  • passive income

Insurance

• default insurance (swap), it is possible to ensure the loan (for the passive income) against default risk. if it is too much for you.
• deterioration insurance, it is possible to ensure the house.
• minimize the risk of exchange exposure  (insure against inflation): use money loan for short-term (current checking account),  store value in market value for long-term, every once in a while sell some real estate to cover the money loan.