What is an asset ? An asset is simply something that brings money into your pocket.
Liability is opposite. It is something that takes money out of your pocket.
Personal loan is a liability, your credit cards debt are liabilities. Your car, your everyday expenses are also liabilities. We have so much liabilities that we have to get a job if we want to pay them...
So we go to work and try to work harder so we can earn more money to pay bigger liabilities. Then we have a house, children, a family to take care of, a dog, a cat, another car so your wife or husband can go to work and bring in a little bit more money, then comes babysitting expenses, and so on, and so on... You know what I'm talking about? Don't you?
So we hope for a pay raise because liabilities are piling up.
How can we get out of that? Get out of rat race ?
The answer is very easy.... YOU HAVE TO OWN ASSETS. How do I get assets, you might ask ?
You have tools ? You can rent them to someone. They become an assets. You have a spare room in your appartment ? You rent it to someone, there it goes... another asset. You buy stocks from whatever companies of futur and they rise to roof ? You have another asset. You have capital to buy a franchise of best coffee shop in your area ? there you go... another asset.
Most of assets comes under 3 categories.
1) REAL ESTATE 2) STOCKS, MUTUAL FUNDS, INVESTING PLANS 3) BUSINESSES
In most cases, to own some assets we need capital. Here we go again with old adage that says ''We need money to make money''
You know what ? It is not true anymore. Especially since Internet age. It has been easier than ever to create assets, create businesses, create money...