4. Buy assets, not liabilities
Buy things that will increase your wealth, not things that make you owe money! For example, if you invest in a stock that pays a dividend of a portion of the profits that a company shares with you, you will receive cash every three months for doing absolutely nothing. Buying assets can be a smart investment choice as their value grows over time. Rich people buy assets, middle-class people buy liabilities that they think are assets, and poor people only have expenses. An asset puts money in your pocket, while a liability takes money out of your pocket.