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42 votes

"Buy assets, not liabilities": How is it possible to buy a liability?

In this sense, a liability is something that would cost you additional money to continue to own, or otherwise hinder your financial position. To quote Kiyosaki directly (and explicitly explain this ...
yoozer8's user avatar
  • 9,513
24 votes
Accepted

"Buy assets, not liabilities": How is it possible to buy a liability?

The definitions in the book are: An asset is something that puts money in your pocket and a liability is something that takes money out of your pocket, Buying real estate is an example of an asset - ...
D Stanley's user avatar
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7 votes

"Buy assets, not liabilities": How is it possible to buy a liability?

In his book Rich Dad , Poor Dad Author Robert Kiyosaki mentions to "Buy Assets not liabilities". Asset means something that appreciates in value over time and Liability means something that ...
onkar's user avatar
  • 261
5 votes
Accepted

How do I use a liability account (in ledger-cli)?

The answer can actually be found in the documentation, you just have to look closer. Virtual Postings will do it. The parenthesis around the automatic transaction means that you aren't representing ...
Wayne Werner's user avatar
  • 1,159
5 votes

Receive liability as a present

A car is an asset. Just because it has maintenance costs does not mean it is a liability. You can sell the car, keep the money, and have no more costs to pay. If the car had a loan attached that you ...
D Stanley's user avatar
  • 136k
3 votes

"Buy assets, not liabilities": How is it possible to buy a liability?

Kiyosaki changes meanings, to educate. Yes, Kiyosaki does not use the standard emotional or accounting terms for things. But that is quite on purpose and for the sake of making a point. For instance, ...
Harper - Reinstate Monica's user avatar
2 votes

stockholders equity is higher than total liabilities but the stockholders equity has "()" indicating it is negative. why is that?

Look at the assets. The total assets are negative too (due to losses in "invesdtments in affiliates"). Since equity is assets - liabilities, it makes sense that equity is negative.
D Stanley's user avatar
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1 vote

How to find total equity from balance sheet of a company?

It seems to be a bad job of normalizing data by MoneyControl. If you look at the actual balance sheet and Yahoo Finance you see a value for total shareholder's equity that more closely matches what's ...
D Stanley's user avatar
  • 136k
1 vote
Accepted

Can shareholders’ equity be more than total assets?

I think the example is incorrect. Good catch.
Charles Fox's user avatar
  • 2,779
1 vote

How do I use a liability account (in ledger-cli)?

In your example, Liabilities:Tithing is being used as a "reminder to self", of how much you need to give to meet your tithing target. Nothing really to do with transaction delays in this case, ...
Simon Michael's user avatar
1 vote
Accepted

Credit card expenses showing as Liabilities in QuickBooks

Is it normal in QuickBooks to have credit card expenses being shows as liabilities? Is there a way I can correct this? If they are expenses they shouldn't be negative liabilities unless you ...
Hart CO's user avatar
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1 vote

How should I document mandatory furlough in GNUCash?

Without going into the philosophy of using gnucash to record future events that might not happen (if you quit half-way through the year, do you still half to "repay" unused furlough days?), my ...
Seth Robertson's user avatar

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