The Difference Between an Asset and a Liability
Many people don’t know the difference between an Asset and a Liability;
which is why many people stay poor.
An Asset is something that puts money into my pocket
A Liability is something that takes money out of my pocket
Eg. An asset would be your job/ business, stocks/ real estate/ dividends
A liability would be your monthly expenses (food, water, electricity)
luxury expenses, rent)
Once your asset income (stocks, real estate, dividends) reaches high enough to
replace your job , you are not required to work anymore; money works for
you. Each dollar in your asset column is a great employee, working hard to
make more employees and buy the boss a new Porsche . That’s where the rich
get richer. Rich people buy assets whereas the poor buy liabilities which they
think are assets (eg. a Gucci bag).
An important distinction is that rich people buy luxuries last. While the poor
and middle class tend to buy them first. They buy big houses, diamonds,
designer clothes because they want to look rich. They do look rich, but in
reality they just get deeper into credit/ debt. The old money people, (the long
term rich) built their asset column first. Then, the income generated from their
asset column bought their luxuries. The poor buy liabilities with their won
sweat and hard work whilst the rich buy them using effortless money.
THE POOR SAY THAT THEIR PROFESSION IS THEIR INCOME WHILST THE RICH
SAY THAT THEIR ASSETS ARE THEIR INCOME
Many people don’t know the difference between an Asset and a Liability;
which is why many people stay poor.
An Asset is something that puts money into my pocket
A Liability is something that takes money out of my pocket
Eg. An asset would be your job/ business, stocks/ real estate/ dividends
A liability would be your monthly expenses (food, water, electricity)
luxury expenses, rent)
Once your asset income (stocks, real estate, dividends) reaches high enough to
replace your job , you are not required to work anymore; money works for
you. Each dollar in your asset column is a great employee, working hard to
make more employees and buy the boss a new Porsche . That’s where the rich
get richer. Rich people buy assets whereas the poor buy liabilities which they
think are assets (eg. a Gucci bag).
An important distinction is that rich people buy luxuries last. While the poor
and middle class tend to buy them first. They buy big houses, diamonds,
designer clothes because they want to look rich. They do look rich, but in
reality they just get deeper into credit/ debt. The old money people, (the long
term rich) built their asset column first. Then, the income generated from their
asset column bought their luxuries. The poor buy liabilities with their won
sweat and hard work whilst the rich buy them using effortless money.
THE POOR SAY THAT THEIR PROFESSION IS THEIR INCOME WHILST THE RICH
SAY THAT THEIR ASSETS ARE THEIR INCOME
