Make Your Assets Pay The Bills

Life is like a video game and one of the quest is financial freedom. Regardless of your current level in life you have to learn some basic skills. The skill to acquire assets and the skill to let the assets pay for the liabilities.

Some people tend to confuse the word asset. They call a house an asset even when that house is costing them money. A house can be an asset or a liability depending on its current status. It could be bringing you money or it could be costing you money. So there is no confusion let us define assets and liabilities.

Assets put money in your pockets.

Liabilities take money out of your pockets.

That’s it.

Anything that is putting money in pockets is an asset and anything that is taking money out of your pockets is a liability.

Your quest should be financial freedom. Your assets should bring more cash flow than what you spend on your liabilities.

So from now on, focus on acquiring multiple sources of income. Focus on income producing assets.

If you like this post, you made also like to look at a list of Cash Flow Producing Assets To Make Passive Income