Rich vs Poor People’s Cash Flows

The ideas in this article are originally the ideas of Robert Kiyosaki, described in his magnum opus ”Rich Dad Poor Dad.” Described herein is a key concept Kiyosaki meant separates the rich from the poor — their different cash-flows, specifically, how the rich have a constant endeavor to acquire assets.

Definitions and the Cash-Flow chart

Let’s start with the necessary definitions. First of all, the image below — the cash flow statement — is essential to comprehend the differences in cash flow between the rich and the poor.