Assets and Liabilities will determine your financial situation, lifestyle, livelihood and overall well being. Some people buy things without ever thinking “Is this a need or a want?” Before you buy anything ask yourself “Will this item go up or down in value? Can I sell this item for the purchase price? One-second after you buy the item can you resell it for half or a quarter of what you paid for it?” If the answer to any of these questions is no then it’s a liability! If the value goes down right after you buy it then it’s a liability! If you answered want then it’s a liability.
People will go and buy (Designer clothing, belts, vehicles, shoes, jewelry, accessories, games, electronics, phones, mansions) liabilities that they can’t afford in order to look rich to/impress someone else that is doing the same exact thing but in reality both parties are broke! Millions of people are going broke buying liabilities to keep up with the Joneses. People are out here going broke buying liabilities to impress people that don’t like them regardless of what they wear! Its cool to wear/buy designer clothing, accessories, jewelry, super/luxury cars, shoes, mansions, bags if you can easily afford them.
Liabilities will ruin your life and kill your dreams if you let them. People can be liabilities too, If you let someone steal from you or leach off of your resources/money then they are a liability! I understand helping someone that is helping themselves but if a person is a bum or a junky they should be deleted from your life ASAP! Liabilities cost money and most of the time the item depreciates at the speed of light. Liabilities will stop you from getting rich and accomplishing your dreams if you let them! Needless consumables like cigarettes, alcohol, cable subscriptions, junk/fast food, pops/sugar drinks, overpriced drinks/food, large amounts of food, lotto tickets, gambling, artificial hair, energy drinks, pills, hard drugs, late/overdraft fees, high priced gas (Buy an Electric Vehicle), gas/electric bills (Buy Solar panels) are a liability too!
Assets put money in your pockets. Liabilities take money outta your pockets. Assets make you rich and Liabilities make you poor! Assets go up in value, liabilities go down in value. You should focus on assets and avoid liabilities! Assets work for you so you don’t have to work for money. Assets are the endgame.
Earning assets are gold! Earning assets are stocks, real estate, art, “Sales/royalties from music, books, movies,” gold/silver bullion, cryptocurrency, Passive businesses, rental properties! Assets are very important to your well being. Use Active income to obtain Portfolio income and Passive income, once your portfolio/passive income is greater than your active income you can stop making active income and start enjoying your freedom. Never put a want before a need, get what you need then get what you want!