The Cash Flow of a Poor Person

So we have the income statement on top, which is income and expenses. We have the balance sheet on he bottom, assets and liabilities. Liability takes money out of your pocket or out of your bank, right? Therefore it creates an expense. That's how a liability works. Poor people use their income for expenses. They buy food, transportation, clothes, computers, phones, whatever,. Middle class people take their salary and they buy liabilities. What are liabilities? He gives home examples. Each one creates an expense, right? There's the mortgage. The mortgage, the loan for the house, creates the expense of a monthly mortgage payment. So these are very simplified. These are simplified