Assets vs. Liabilities. There is a HUGE difference between the two and if you want to retire early or “safely,” it is important for you to understand the difference.
What determines the difference between Asset and Liability? It’s the term Cash Flow. Cash Flow is More money coming In to your pocket residually than money going out.
Here are some key points and examples:
1) An Asset puts money IN your pocket, A Liability takes money out of your pocket.
2) A Business (Asset) saves you money on taxes, a Job (Liability) doesn’t offer the same tax benefits.
3) An Asset helps you get rich/secured, A Liability keeps you from getting rich and someone else can fire you at any time.
4) The more Assets you have, the sooner you can retire. The more Liabilities you have, the longer you might have to work.
I didn’t understand the difference between the two on my own. I had to get fired from a company I was with for 4 years before I understood it. And when I learned the power of having Assets, that changed everything! I refused to leave my future in the hands of somebody else.
Don’t get me wrong, everyone is in a different position. You might need a job to pay the bills, and that’s okay. I want to encourage you to take a look around and reflect on the type of life you’re living, and the type of life you want to live. A life of week to week paychecks, or a life of abundance? A life of thinking “uh oh, tax season,” or “YES! Taxes are great for me!”
There are plenty of ways to accumulate assets part time when you’re working a job. That’s how I did it and many many other successful people did too. The key is to start now.
*Next I will be talking about the 3 Types of Assets Available. So be sure to connect with me on Facebook or set a reminder to check back next week.
My passion is bringing health and freedom into people’s lives. If you know someone I can bless, please help make the introduction. Thanks!
Health and Freedom Expert