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What are liabilities?

If you've never read the book "Rich Dad, Poor Dad" before, it is a read that I highly recommend. You can grab a copy here: https://amzn.to/3yWPEaL


It's a book that set in stone and changed my perspective on what assets and liabilities truly are. In it's most simplest form, an asset is something that puts money in your pockets and a liability does the opposite- it takes money OUT of your pockets.


But let's take a deeper dive into what liabilities are:


✅ Something that takes money out of your pocket.


✅ It depreciates.


✅ Doesn’t pay you any money.


✅ Gives you a big ol’ headache.


So if assets put money IN our pockets and liabilities take them away, how do we reframe our spending habits to purchase more items that would benefit us in some way?


Think of it this way: is this going to take money out of my pockets?


Yes, ok well is it worth it?


Maybe?


Sometimes taking money out of our own pockets brings us great joy and for that I say go for it. BUT do it when you aren’t strapped and struggling for cash.


Pay yourself first and then spend what's left over.


And do yourself a favor and get invested.


Develop a source of passive income that will allow you to live life on your own terms. It only starts with one and can snowball from there.


𝐋𝐞𝐭 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐞𝐬𝐭𝐚𝐭𝐞 𝐩𝐚𝐲 𝐟𝐨𝐫 𝐲𝐨𝐮𝐫 𝐟𝐮𝐧 𝐭𝐡𝐢𝐧𝐠𝐬!

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