Want to Become Rich Quickly?Buy Assets Not Liabilities

by Gily Tenorio on May 27, 2010

in Personal Finance

Get-rich-quick schemes are often associated to scams. Getting rich in quick way is not really quick indeed. Although there are some instances you think may accelerate the growth of your wealth, it may even result to loss of your money. Many people fall to scams due to lack of proper financial education.

They want to get rick quickly in the wrong way. Even the richest people in the world like Bill Gates and Warren Buffet, didn’t get rich instantly. They were able to build up their wealth in years of hard work, right investment decisions and perseverance.

It may take many years to see your wealth increase. However, you can make it faster once you’ve learn to buy assets and not liabilities. According to Robert Kiyosaki, best selling author of Rich Dad, Poor Dad, assets are those you buy that puts money to your pocket while liabilities are those which takes away money from you. From this definition, you can see that there are many assets which you can buy so it will put money to your pocket.

Assets can be mutual funds, stocks, real estates that you lease, business or any investments that gives you income. Assets can give you passive or active income. On the other hand, liabilities can be your house, cellphones, cars, electronic gadgets and appliances that makes you spend your money.

In reality, you can’t really avoid to buy liabilities because some of it are necessities in life like your house, clothes and appliances. The important thing is to set highest priority in buying assets rather than liabilities if you want to get rich quickly.

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{ 6 comments… read them below or add one }

elleica June 16, 2011 at 02:44

really great blog! I learn so much from your posts. However, I want to know about endowment funds. They are not get rich quick schemes. In fact, my money will mature in 15 years! I have signed up with this company for such a plan but my husband feels like they are scamming me while I feel like the return is really low. Any help? Thanks!

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ruperto nambio February 20, 2012 at 05:35

Hi elleica,  re: your question above on endowment funds.  These endowment funds are operated mostly by non-profit organization like charitable institutions or done by some universities.  The purpose of which the capital invested and the return or interest from that capital are withdrawn to/put  into the  assigned fund for normally a long term, like in your case 15 years.  So, better check your assigned account to see if there amounts deposited from the interest your are suppose to have.  For additional info, visit http://www.investopedia

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Girlie February 16, 2011 at 05:31

Hi, this is off topic, but thought I ask question.

Can you please tell me about In-trust account for Education Fund. I`d like to set up an education fund for my nephew, he is 4 yrs old. Thank you..

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ruperto nambio February 20, 2012 at 05:56

Hi Girlie,  by this time your nephew is not 5 years old, since your question above was one year ago.  Regarding “in trust account”, this is set for specific purpose like in your case, an education fund for your nephew.  Normally, a trust account is opened because your trustee (nephew) cannot open an acct. for himself/herself,  so you opened in their name.  Many philippine commercial banks accept this type of account, since  the time used here is favorable to the bank and also good for you because you are taking your time without rushing to set aside the amount for your nephew.  All the best.

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Free CNA Training June 26, 2010 at 12:43

well written blog. Im glad that I could find more info on this. thanks

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ruperto nambio February 20, 2012 at 05:57

your quitely right!

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