RAISING YOUR FINANCIAL I.Q.
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Assets v Liabilities
Our Goal - To Improve The Financial IQ Of Everyone.
It is absolutely vital to improve your financial IQ that you understand the difference between Assets and Liabilities.
Assets
Assets are things you purchase that pay you for owning them or that continually go up in value. The most obvious assets are rental properties, shares and businesses.
All properties, business and shares are not assets. Any one of these that costs you more then it pays you is a liability.
Only invest in assets. You cary the risk and you should be paid for that risk.
Liabilities
Liabilities are any thing that costs you money. So purchases at a shop are liabilities, some poor investments are liabilities. Avoid liabilities at all costs.
Hot Tip!
Spend and invest on assets, they add to your income, giving you more money to spend and invest on assets. If you continue with this philosophy your income will grow like a snowball rolling down a hill.
One program we use to continually snowball our income is Commission Blue Print. It allows us to continually develop new forms of income using click bank affiliate marketing. (see income)
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Disclaimer - this information is general in nature and does not take into account your individual circumstance. You should always seek professional independent advice prior to acting on this information or making any decisions based on this information.
Having a continuing Credit Card Debt is the number 1 enemy to gaining financial control. It is ridiculously expensive and it is almost always a sign of severe overspending. Read More.
Good debt is where borrowings are used to fund investments and Bad debt is debt used to fund purchase of liabilities and consumer items such as clothing, jewelry, Jet skis etc. Read More.
MOST financial problems are caused by over-spending on wants rather then needs.
Save 10-20% of every dollar you ever earn or receive. Automate the process. Then invest.
Assess every purchase or investment on how it will affect your Cash Flow.
Develop the correct types of income and from multiple sources. Create Income from ideas.
Assets are cash flow positive and generally go up in value. Liabilities are cash flow negative.
Investment is about buying new and additional forms of income to provide comfort and security.
It is vital to insure your earning capacity and wealth. Income, medical and life insurance is an absolute must for most people.
There is a lot to think about and calculate it is vital you plan and discuss your life goals with time to implement them. Read More.
Wealth is a measure of how long you or your family could survive if you stopped working today.
.. is about being able to make choices without strict limitations imposed by work commitments or finances.
Ultimately we develop a sense of worth by how we contribute to the lives of others. Give with time then money as you can afford it. .
Goal setting will improve results dramatically. Remember to live life and enjoy the journey.
