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RE: The Rich and the Middle Class biggest difference in one sentence
It's so true. To buy assets you need money. If you have no money you are not able to buy any. That's how the rich get richer. The middle class borrow too much and own nothing but liabilities. An asset is not an asset until you own it debt free. Thanks for sharing.
Thats right! What is intended over here in a example is that a rich person would buy a house using it as a asset so thinking of a way for the house to provide cash flow. While the middle class would buy the same house on debt thinking it's a asset when it's actually a liability, but once it's fully paid off they would still not make good use of it, leaving it a liability.