Kiyosaki's Income Framework: Earned vs Passive Wealth

Robert Kiyosaki, author of Rich Dad Poor Dad, has outlined three types of income that he believes separate the rich from the poor. Earned income comes from a paycheck, portfolio income comes from investments, and passive income comes in without working.

Kiyosaki associates earned income with being poor or middle-class, while passive income is seen as a hallmark of wealth. He notes that U.S. tax treatment depends on how the income is produced.

In his latest post on X, Kiyosaki highlighted the importance of understanding the language of money and its impact on one's mindset towards work and wealth.