Know the Difference of Asset and liability
The most important knowledge if you want to stay out of the rat race and stay out debt forever, Is knowing the difference of asset and liabilities.
This is simple i might not even take a 500 word to tell this secret of the rich.
Asset - Is something that puts money in the Pocket. Ex, Trust Funds, Investment, Paper Assets, Business, Real Estate properties.
Liabilities - Something that takes out the money in your pocket. Many will dis agree, i know but this is the truth. Ex, Appliances, Car, HOUSE, many people will hey! the says my house is my asset? i tell you they don't know a thing about it. A house eats money, electricity, Water bills, etc. And as the definition says something that take out money.
regular people live pay check by pay check i see most of them get there money, pay bills, and that is it no more left for anything sometimes it is not even sufficient and buying things like clothes is not gonna happen.
This is a Poor persons activity.
Pay Check
1. Pay Bills
2. Buy basic Needs
3. Invests???
Sometimes the number three is omitted.
Here is a Rich person does.
Income from assets or businesses
1. Invest in assets
2. Buy Basic Needs
3. Pay bills.
See how rich people gets richer? they invest back profit and we know money makes money.
This is simple if we are to apply it in our daily life, maybe all people will never had money problems,
As i said in some of my post i am a rich dad enthusiast and this tips are all learned form him. I applied this strategy even i was still studying in college before and did manage to finish school by myself and even get to have some cash as a start up capital to a good business that i run now. And also applied the good debt method.
All of this is doable if we just keep an open mind, see there are no rich people who is a employee? i am not against it but if money is your problem and wealth is what you want, then working for someone is not the right way for you. Have you noticed? all of the rich persons do have business and tons of assets they didn't steal those, they worked for those, they had the skills to do it, that is never learned in school. Open mind is very important. if what you keep on doing now don't seem to solve problems specially monay matters then, there might be something wrong to what you are doing? make this article in to consideration and look around you? things is passing by fast. Do something, start by learning this simple lesson.
Assets vs liability this is very simple. simple enough for a grade school to understand because they have open minds. I know you could do better maybe you are here because you think you need something to change, You are getting information here for a purpose. I tell you again, look around and see those things that you want that you don't have now? why they have those and you didn't? are doing the same thing? maybe not? why can't you do those? maybe you can? you just needed to take action and start. Don't believed in the saying that ou will never be rich, you can if you want it to and take action. Debt is forever be vanished in your nightmares if you take steps now. Time is gold.
