By Robert Kiyosaki

They say that a picture is worth a thousand words. Study the diagrams above and see if you can pick up some of the distinctions between the two stories:

If you’re financially intelligent, you can see important distinctions in the diagrams above.

The Power of Cash Flow

 

The first diagram depicts the actions of those who pay themselves first. Each month they allocate money to their asset column before they pay their monthly expenses.

The second diagram depicts the actions of those who pay everyone else before they pay themselves. Each month they allocate money to their expenses column and then invest with whatever is left overówhich is usually nothing.

If you understand the power of cash flow, you will understand what is wrong with the second diagram. It’s the reason why 90 percent of people work hard all their lives and need government support like Social Security when they are no longer able to work. The reason is they pay themselves last.