Assets vs Liabilities – Why the Rich Make Much More Money than Everybody Else?
Ever wondered why it is always that the rich make much more money than everyone else?It turns out, the list of explanations is rather limited. Frankly, the top cause why the wealthy make much more money is because the wealthy understand how to think wealthy! Earning money, building wealth, getting rich; these are all skills, just like reading, writing and arithmetic. Most of the people teach their kids to go to school, study hard and go get a good job. The rich don’t teach their kids to find jobs, but instead to create jobs!The good news is, everything there is to know about money may be summed up in four easy to understand points:AssetsLiabilitiesLeverageResidual IncomeWe’ll save the last 2 for some other time, for the time being let’s talk about Assets vs Liabilities. For our needs, an asset is something that can make you profit phen375 . A moneymaking home business, a stock that pays dividends, rental homes, a hammer & screw driver can all be assets. A liability is something that costs you money. A small business that manages to lose money and a rental building that does not generate more than enough rent to pay the mortgage are liabilities.Top-Secret Method of the Poor – Acquire Liabilities. Top-Secret Method of the Rich – Acquire Assets. One good reason the rich make much more money compared to the poor and the middle class is these people recognize that getting through your life with more debts than assets is just like trying to swim with cement blocks tied to your feet! The majority of people seem to make a hobby of accumulating liabilities; they’ll buy products on credit cards, they mortgage their home, they buy their car or truck with monthly payments.