I recently attended a seminar and had the privilege of listening to Sharon Lechter. For those of you unfamiliar with Sharon, she has co-authored several books with Robert Kiyosaki. (If you have never read any of their books, you are missing a wonderful resource for learning about financial freedom.)
o 90% of the population are living pay check to paycheck
o Many do no have the Financial Education they need to get out of the rat race
o Our educational system does not teach financial basics and freedom
o If you want Financial Freedom, you have to educate yourself
o Income - Money coming In
o Expense - Money going Out
o Asset - Brings Money In
o Liability - Sucks Money Out
IS YOU HOUSE AN ASSET?
I just gave you a list of definitions. Based on the definitions, is your house an asset? Does your house bring money in? I know for myself, that is definitely not the case! It continually SUCKS money out. It is therefore a LIABILITY. I know you are going to argue with this logic. I did the same. Yes, a house typically appreciates in value. Yes, you will probably make money when you sell your house. BUT, if it is not a source of income, it is by definition a liability.
What about your other possessions?
o Car - liability
o Swimming Pool - definite liability
o Boat - liability
Let's think about assets. What assets do you own? Do you have a savings account? Your savings is an asset. Due to low interest rates, the income it produces is small. But none the less, it is an asset. What about stocks, bonds? These are assets. Rental Properties? Assests.
If your response is: "I'm so strapped that I can't think beyond paying the bills today." ;you need to educate yourself. You do not need to be in bondage. Go to the library and read some of the books by Robert Kiyosaki and Sharon Lechter.
I will be writing a series of articles highlighting all the relevant information I gleaned from this conference. If you are looking for a 'Get Rich Quick' scheme, look elsewhere. After you have exhausted you time and resources, come back and learn how you can gain financial freedom the only way.