💵Finances💵 Assets and liabilities

Hello steemians, I hope you are very well, today I bring you another section of 💵Finance💵, in this opportunity I will talk about assets and liabilities, in books you can get definitions that tend to confuse people and this is a serious problem, since Many end up increasing their liabilities instead of increasing their assets, it is very common to read that real and personal property are assets, but to what extent is this true?

Robert Kiyosaki is one of my favorite book authors. He explains in a simple way the difference between these two concepts.

Assets

Are all those goods or stocks that leave you a dividend over time, or if you do not generate a cash flow (dividend) at least should be revalued over time, say you buy shares in Google or Amazon, historically these companies have managed to increase the value of your shares which would generate a percentage of annual return on your investment, if you buy a bag making machine, even if the machine depreciates, the productive activity generated by the machine will be greater than its depreciation.

Liabilities

They are all those debts or obligations that you acquire during your life, in other words the liabilities are all that take money out of your pocket or a good that depreciates in time and that does not generate dividend.

Source

It is common that some goods tend to confuse them with assets when they usually represent a liability, an example of this is the cars, when you buy a car as soon as you leave the agency it costs less because your condition goes from being new to used, apart from generates maintenance and fuel costs, then it is a good that depreciates in value and separately generates monthly expenses. Of course there may be exceptions, if you buy a limited manufacturing car that is increasing its value as time passes.

Source

Another good that tends to confuse people is the main house, it is very likely that most of the dream is to have a large house with several rooms and because no pool included, it is common to hear "buy the best house you can as you will be your greatest asset ", but nothing is further from reality, the bigger houses represent a higher maintenance cost and as if this were not enough in many countries the services are more expensive in the areas where the big and beautiful houses are, then you buy a house for which you acquire a mortgage for 30 years, it generates more expenses in services and maintenance than a small house, definitely the house happened to make a liability, it only involves spending money and in normal conditions the value of the house does not It varies a lot, just as with cars there are exceptions,If you buy a house or apartment to rent it and the rent payment is higher than the mortgage fee, the service and maintenance expenses definitely acquired an asset, another option is to study the real estate market and buy in pre-sales projects in which The costs of the finished goods will be higher than in pre-sale.

It is very important to know how to correctly identify the difference between assets and liabilities, since this is a crucial factor to have a financially healthy life, remember that no matter how much money you earn if you are full of liabilities the money will never be enough, it will always be scarce and you will have to Work harder and more hours to try to pay the bills, while the more active you have, the more money will go into your pocket and you will have more free time to enjoy life.

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See you later, steemians and remember HOLD !!!

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