What is an Asset?
Most of the people struggle financially because they don’t understand the basic difference between the words Assets & Liabilities. Let us today understand that What is Asset and Why is it so important in being Rich & Financially Free.
In Layman’s language, Asset is something which is likely to appreciate in future (Capital Gains) and/or gives you a regular Income (Cashflow). In short, Asset is something which puts money into your pocket.
See the above line diagram. On your Financial Statement, There is a Balance sheet which has the Asset Column and a Liability Column. Asset is a thing that can give you a passive income. A Passive Income is one to earn which you have to do one time hard work only and after that that income flows into your pocket for the rest of your life weather you work or not?
Examples of Assets are Stocks, Bonds, Gold, Real Estate, Mutual Funds, Art, Web Properties, Businesses, Intellectual Properties, and anything else which puts money into your pocket.
While the examples of Passive Income are Dividend Income, Interest Income, Rental Income, Business Income, Royalties, Online Income, Capital Gains…etc…
Rich always focus on growing their Asset Column of the financial statement and that’s why they become and stay rich. While everyone else mainly focuses on growing their Income and that’s why they struggle financially.
Remember, if you want to become rich than you have to grow your Assets. You have to focus only ine one thing if you want to become rich and financially free and that is Assets.
Most of the people struggle financially because they don’t understand the basic difference between the words Assets & Liabilities. Let us today understand that What is Asset and Why is it so important in being Rich & Financially Free.
In Layman’s language, Asset is something which is likely to appreciate in future (Capital Gains) and/or gives you a regular Income (Cashflow). In short, Asset is something which puts money into your pocket.
See the above line diagram. On your Financial Statement, There is a Balance sheet which has the Asset Column and a Liability Column. Asset is a thing that can give you a passive income. A Passive Income is one to earn which you have to do one time hard work only and after that that income flows into your pocket for the rest of your life weather you work or not?
Examples of Assets are Stocks, Bonds, Gold, Real Estate, Mutual Funds, Art, Web Properties, Businesses, Intellectual Properties, and anything else which puts money into your pocket.
While the examples of Passive Income are Dividend Income, Interest Income, Rental Income, Business Income, Royalties, Online Income, Capital Gains…etc…
Rich always focus on growing their Asset Column of the financial statement and that’s why they become and stay rich. While everyone else mainly focuses on growing their Income and that’s why they struggle financially.
Remember, if you want to become rich than you have to grow your Assets. You have to focus only ine one thing if you want to become rich and financially free and that is Assets.
0 comments:
Post a Comment