- Personal Finance
Inception of Assets
The one thing this economy has spotlighted above anything else is the necessity of building assets. Assets produce income on a regular basis whether or not income from a job exists. How can assets help secure your financial future?
“An asset is anything that puts money in your pocket and a liability is anything that takes money out of your pocket:” for example, a house is considered a liability because the monthly mortgage, insurance, utilities, and maintenance costs must be paid out of your pocket every month.
That same house becomes an asset if rented out so the tenant pays you every month. Those wanting to learn different ways to make and spend money could benefit from a strategic multi-tactical approach of working a job while simultaneously building assets, and monitoring liabilities.
Building assets that provide passive income is a way to make money work for you. Passive income is money produced without laboring at a job. Working at a job is the way to work for or earn money. My tactic; work while simultaneously learning and investing in acquiring assets until the passive income from assets surpasses the earned income from the job. This was accomplished by planning a set amount of time to learn, work, network, and invest.
The inception of knowledge gained from learning about the businesses, real estate, commodities, or paper assets categories that produce passive income can positively affect the future. There are many ways to secure your future financially and getting started is always the hardest part so start by applying this checklist to daily life:
- Spend time each day using the resources below to build your financial knowledge base
- Create a budget and consistently set a portion of money aside each pay period for investing
- Choose friends and mentors that are already where you want to be or working toward that direction
- Keep expenses low by deferring luxury purchases until income from assets can support them
- Use financial pressures as motivation to develop innovative legal ways to create money
Use credit wisely such as financing for assets and not to purchase liabilities
The checklist above and the recommended resources located below are a good start on the journey toward financial freedom. Pick assets you understand or are interested in from the business, real estate, commodities, or paper categories and start learning. Then start investing. Education along with good advisors, mentors, and friends are your most powerful assets. Reach out, stay connected with others, and enjoy the journey.
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