Over the next few weeks, this article will be dedicated to educating all that are ready for a substantial change in their life. For disclosure, nothing written below is easy.
Let's get started:
Assets produce income every month
Liabilities take money from you every month
Everything else is doodads
Men and women have within themselves the need to gather, to accomplish, even to purchase. If you do not concentrate on purchasing assets (things that produce income), you will by default purchase doodads or worse liabilities.
Doodads: golf clubs, ink pens, watches, ATV's, albums, cookware, plasma TV's, iPods, cloths, etc.
Liabilities: cars, your personal home (and your second home, as well), boats, motorcycles and investment property that is not set up properly.
Assets are, for instance, appropriately purchased and structured rental property (maybe with an actual down payment to lower the mortgage which lowers the monthly payments which causes the property to have a positive cash flow), stocks and bonds that are paying dividends, business's that make money for you while you are at rest or play; of course there are a few more but you get the point.
Well just to make sure you get the point, your house, everyone's home, is not an asset.
I'll prove it to you. If I purchase a $100,000 house, will it do everything a $500,000 home will do? Can I sleep there? Can I eat there? Can I raise my kids there? Sure I understand we all want a nicer house with a three or four car garage to put all of our doodads and other liabilities in. I get it.
Three years ago you could hear some say: "The value of a house in America will never go down." I get it. A house should be your largest investment. Right?
ONLY THE POOR AND WORKING CLASS BELIEVE THIS B.S. THE RICH, THE ONES THAT LOAN YOU THE MONEY, PUT YOUR HOUSE/LOAN ON THEIR BALANCE SHEET AS AN ASSET. FOR YOU, IT'S A LIABILITY.
SORRY. THE BANKS HAVE BEEN LYING TO YOU. THEY LET YOU LIST YOUR HOUSE ON THE ASSET SIDE OF YOUR BALANCE SHEET JUST TO KEEP YOU FROM JUMPING OUT OF THE WINDOW. BUT, (AND I NEED LARGER ALL CAPS) YOUR HOUSE, CAR, BOAT, JET SKI AND YOUR FURNITURE ARE NOT ASSETS.
If what you own does not produce income, it is not an asset. I told you I would prove it to you. Yes, I understand that your house may be an asset if it goes up in value. Question: any houses in your area not going up in value? Any houses in your area costing the owner more than he thought it would? Any owners in your area strategically defaulting from their assets? No, they are strategically defaulting from their liabilities. If it were producing income, would they walk away? I told you I would prove that not all houses are assets.
Homework:
1. List all of the assets that you own that are really liabilities and include the monthly cost for same.
2. List all of your real assets, the stuff that produces money each month
3. List all of your doodads, how much you have spent on them.
Then read the next statement:
What should you do differently, what do you need to learn, what do you need to change in order to stop purchasing liabilities that take money out of your pocket every month and just as important, what should you do today that will cause money to come to you each month?
If you are an originator, credit repair company, or you have moved on to the loan modification business, and have not gone back to delivering pizza at night, ask yourself, how do I obtain business?
If you must breathe in order for business to come in, if you must be there in order to make money, you just have a glorified job. If you want to know how to turn that J-O-B into a business, are just curious, or you think you already know everything and are still reading this article, sign up at
