I was just reading the Cashflow Quadrants by Robert Kiyosaki where he highlights something his rich dad pointed out. Is what you hear a fact? Or is it an opinion? The answer to this question should have repercussions for how you act in response. If a valuer tells you your house is worth $1m, is that a fact or an opinion?

Facts are things that you find in your business statements, cold, hard, data. People who can’t read business statements (myself included) rely on people to explain them, and that explanation is also an opinion. Also, if you aren’t sure if something is a fact or not, it’s an opinion. Opinions have the latent problem of sometimes being wrong. So, when it comes to investing, and I would add other decisions in life, don’t rely on opinions and emotions. You can use them for guidance towards building your opinion, but don’t rely on them completely. Search for the facts and let them guide your actions.

I was also reminded that your primary housing is a liability, unless it brings in cashflow. Just a reminder to my future self, an asset is something that brings in cashflow. A liability is anything that loses it.