In his opinion, it's more important to systematically invest a portion of your income than to pay your bills or to pay your taxes. Robert also has a definition of an asset versus a liability that is different from conventional accounting. Investors generally focus on accumulating assets and avoid liabilities. Simply stated, assets generate income or cash. Liabilities consume cash.
Rich people accumulate assets.
People who aren't rich accumulate liabilities. When we accumulate these things, we are not really accumulating wealth, we are consuming it. Instead, we should emphasize regularly acquiring stocks, bonds, tax lien certificates, rental real estate, and other investments. We also need to learn to build value and get some tax shelter by building our own business. Robert acknowledges that it is possible to use the principle of compound interest and regular saving to achieve financial independence.