Types of income

In "The Four Streams of Income," Robert Kiyosaki argues that traditional financial advice, such as living below one's means and saving for retirement, is not enough for achieving financial freedom. He encourages readers to think differently about money and to focus on building multiple streams of income.

Kiyosaki defines four streams of income:

1. Earned income, which is money earned from a job or a business. This is the most common form of income and the one that most people rely on.
2. Portfolio income, which is money earned from investments, such as stocks, bonds, or mutual funds.
3. Passive income, which is money earned from rental properties or other passive investments, such as a business that requires minimal involvement after it has been set up.
4. Royalty income, which is money earned from intellectual property or licensing, such as royalties from a book or music or patents.

He argues that having multiple streams of income provides financial security and freedom, as it reduces the risk of relying on one source of income. He also stresses the importance of financial education, and understanding the difference between assets and liabilities. Assets put money into your pocket, while liabilities take money out of your pocket. He also encourages readers to focus on building assets, rather than saving money, in order to achieve financial freedom.

Overall, Kiyosaki's book encourages readers to think differently about money and to focus on building multiple streams of income in order to achieve financial freedom. He encourages readers to focus on financial education and understanding the difference between assets and liabilities and to build assets rather than saving money