Robert Kiyosaki in his book, Rich dad poor dad, divide people into 3 categories depending on how they treat money. Rich, middle class and poor.
Poor people make some money and spend all of it. They will pay everybody else first and make them rich and have nothing to show for themselves.
Middle class people have better income, they pay their expenses first and with money left over buy some liabilities like a bigger home or a shinier car to look rich, and in the process increase their expenses. As their income grows they increase their expenses too. They look rich but have to work all the time to support their life style.
Rich people make some money, and the first thing they do is pay themselves and buy some assets. The assets will make them more money and now they will pay their expenses and buy liabilities. Over time their income will grow faster than their expenses and that’s how they become and stay rich.
