Whats the Difference between Assets & Liabilities?

Hey Guys……. This is one of the questions that I always pose to all new prospects that I speak to when talking about starting a business. I have noticed that a lot of people don’t really understand the difference, and I think its KEY to understand before you go into any type of business where you expect to make money.                                                                                                                             images (2)

So What is an Asset? The dictionary describes an asset as a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.  Most people I speak with consider their job an asset. IMO I believe a job only helps you make money, but does not guarantee that you will “HAVE” money. Sometimes people get so comfortable with just being able to make money to pay bills, put food on the table but yet still have more month left at the end of the money. Unfortunately some people who just work a job are the brokest people in the world and they simply don’t know it. My examples of assets are:

Businesses – Something that brings in income

Your Brain (IQ) – I consider this one of the most valuable assets you can have. Don’t believe me ask Bill Gates, Steve Jobs, or Any other Multi-millionaire whose IQ allowed them to achieve success.

Property – If you invest in property then most likely you are getting a residual income that is definitely an asset.

Now what are Liabilities? Liabilities are simply anything that is taking away income as opposed to bringing it in. Often times when people live beyond their means they have far more liabilities than Assets, causing them to have to go find additional sources of income. Most of the times getting another job, not realizing that 2 jobs are for 2 people. If the first one wasn’t enough, why would the second one be? I consider liabilities to be:

House – A house that isn’t used for making money such as property, home business I do consider a Liability. If it isn’t generating income, then it          must be decreasing your income to maintain thus being a Liability.

Bills – Unfortunately we all have them, and one of the worst feelings is getting that check on friday, writing out all the bills to pay, and realize all the      money is accounted for by the end of the day. (Ever had that happen to you? I can relate)

Too many Liabilities is definitely a problem. This is why I believe is a great idea to start a home based business. Something you can do from the comfort of your home that can generate an income. The right home based business can actually keep your from enduring the dreaded “frozen account syndrome”. download (2) This happens to people when their bank accounts seem to be frozen at the same point year after year after year without any growth. They keep making the same goals every year, and after 1 month are right back into the same cycle. (Sound familiar?)

Now how do people move beyond this? Once they realize that it’s not the economy that is causing these problems they can begin to put together a plan of action. One KEY thing to realize is that the same things that get you into debt, will not be the same things that will get you out. One of the biggest complaints I hear from people is that their bills seem to always catch up with them at the worst times. (I admit I have said this numerous times in the past).

How can I possibly answer that. Well honestly I simply tell them that I can show them how to turn their biggest Liability into their greatest stream of income. I don’t know who wouldn’t love to get paid every single time they pay their bills, mind you people all over the world pay bills. This could be the single most important idea I could share with anyone who has ever felt that way about their bills.

Click here to find out exactly how you can also get paid over and over and over, for people simply doing what they always do, and that’s paying their bills every month. http://goo.gl/PdELbb

PS. If you got any value from this please don’t be stingy……share the wealth 🙂