Robert Kiyosaki defines three income types for wealth building

Author Robert Kiyosaki has identified three distinct types of income that he claims differentiate the wealthy from the poor and middle class: earned, portfolio, and passive income.

In a recent social media post, Kiyosaki categorized earned income as wages from employment, portfolio income as returns from investments held by savers, and passive income as money generated without active labor. He emphasized that a person's mindset and the language they use regarding money are their most valuable free assets, noting that negative phrasing can act as a financial barrier.

Kiyosaki also addressed the tax implications of these income streams, suggesting that earned income is often taxed most heavily while passive income can sometimes be taxed at zero. However, tax experts note that IRS rules regarding passive activity and portfolio income are complex and depend on specific participation and activity types.