In his influential book Rich Dad Poor Dad, Robert Kiyosaki famously declared, “Your house is not an asset.” This assertion challenges conventional financial wisdom, which often regards homeownership as a cornerstone of wealth building. Kiyosaki's perspective is rooted in his broader philosophy that emphasizes financial literacy, making smart investments, and the importance of distinguishing between assets and liabilities.
Kiyosaki defines an asset as something that puts money into your pocket, while a liability takes money out. Under this framework, a primary residence - which typically incurs ongoing expenses such as mortgage payments, property taxes, maintenance, and insurance - qualifies as a liability rather than an asset.
