Growing up most of us learn money habits from our friends and family. Far too often we take the trust we have in our friends and family and replace logic with that they can help us with money. For most of us when we look around all we see is people in debt and not much wealth at all. Another strange fact is that most of the time they could change their direction with very little efforts at all. The missing factor tends to be two fold financial intelligence and self control.
When spending your money it is important to spend it wisely. When we look at what we spend our money on we first need to think about if it is a liability or an asset. Liabilities cost us money and assets build us money. This is something if you do not have the understanding fully you should research. I would highly recommend the book “Rich Dad Poor Dad” as a starting place.
Here Are Just A Few Assets
- Real Estate Investments
The reason most people stay in perpetual poverty is because of not understanding what a liability truly costs. When buying a car they look at it as an asset. Why is this because they were taught bad banking. While a car if bought at the right price then sold for more could be an asset. What most people do is buy a car and drive it for years. This means it is a liability because year after year you will pay insurance, oil, to wash it, to service it, and so on. All the while you do not make anything off of it. Then you may argue but I need to get to work. Yes this is true but you do not need the high grade car you have till your cash producing assets can pay for it. This is buying ahead of affording.
Here Are Just A Few Liabilities
The Time Is Now
Now that you have been introduced to this idea you need to decide. Are you the doubter who thinks I am wrong or are you sick of being poor? The more you know the more you grow. While money does not create happiness it sure beats poverty. Thanks for reading today and if you like this blog make sure to check out www.realfactsonrealestate.com for our Podcast, Facebook group, newsletter, and so much more. If you have any questions or comments please leave them below.