What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Asset Class: Real Estate
Real estate is the asset that requires the ability to control debt and 
manage property and tenants.
In 1973, I took my first real estate sales course. Today, Kim and I are 
tens of millions of dollars in debt, debt that produces millions in income, 
much of it tax-free. In the past year, banks have lowered interest rates 
which reduces our mortgage payments and increases our profits. Real 
estate is great because debt and taxes make the investor rich.
E’s and S’s focus on income:
B’s and I’s focus on assets: 
What Is Risky?
E’s and S’s believe investing is risky because they have limited, if 
any, financial education about assets in the asset column. Investing is 
not risky. A lack of financial education is very risky.
B’s and I’s focus on assets which teaches them to manage assets and 
reduce risk.
Four Different Asset Classes
As a young boy, my rich dad taught me about the four basic asset 
classes in the asset column. He said, “The more you know about the 
different asset classes, the more your control goes up and your risk
goes down.”
Income
Expenses
INCOME STATEMENT
E-S
Assets
BALANCE SHEET
Liabilities
B-I
Assets
Business
Real Estate
Paper Assets
Commodities
BALANCE SHEET
Liabilities
Income
Expenses
INCOME STATEMENT

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Chapter Four
Unfair Advantage
149
148
Explanation 
Remember, a business creates most of the truly wealthy people, but 
a business takes the most financial education. Real estate requires the 
second-highest financial education. Paper assets are easy to get into, 
but are the riskiest. Commodities like gold and silver take the least 
financial education but are not risk-free.