The rich acquire assets and the poor and middles class acquire liabilities, but what the difference between assets and liabilities?
An asset is something that takes money in my pocket, and a liability is something that take money out of my pocket.
we listen the phrase that money make money this is the idea, before to expend the money you need first made the money increase then after you can expend one part.
People that know very well this form to work with money can call in the future rich people.
Rich people buy luxuries last, while the poor and middle class tend to buy luxuries fist.
But way poor and middle class peoples go in this way?
Because for the majority of people want to show to other people status. They want to look rich.
They look rich, but in reality they just get deeper in debt on credit.
We can divide our accountancy in three column: expense, liabilities and assets.
We consider expensive money that we use to pay things how tax to government, liabilities things that we buy and takes money out of our pocket example a mortgage that we pay for the bank, and the last the assent that generate income for us.
We need to made a struggle to built a power assent column first, then the income generated from the asset column bought their luxuries.
The middle class and poor people made the opposite the liabilities column is strengths, the asses column is weaknesses consequently the need to work hard to other person to earn money generate income to pay the bank and generate income too for the owner of the company that they work.
For the middle class and poor people the profession generate their income, for the rich people the assents generate incomes.
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1 comment:
Excellent post!
I totally agree, and you understand exactly what the message of the book is. So your reading comprehension is very good. Keep up the good work...
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