Assets and Liabilities: Are You Getting Richer or Poorer?

Everyone wants to get rich. But, who gets rich eventually? If you make $10,000 per month, spend $2,500 of it, save the rest and then buy assets with your savings, you will get rich, and richer. But, even if you make $1 million per month and spend all of it to buy liabilities, you are poor, because as soon as your income stops for any reason, you will be broke.

It means, getting rich is not always the matter of the amount of the money you make. It is the matter of spending your money on assets or liabilities.

Assets are your belongings that make money for you. The house you live in is not an asset, especially when you have to pay the mortgage. It is just the money that you have frozen in a property you use to live, and so it doesn’t make any money for you. Besides, most of it can belong to a bank. If the value of your house goes up over time, you might make some profit, but to do that, first you must sell your house. As long as you are living there and paying the mortgage, you are losing money on it. Therefore, your house is not an asset. It is a liability.

I am not saying that you should not buy a house to live in. I am explaining the difference between assets and liabilities.

The property that you can rent to make money, is an asset, even when it has a mortgage that must be paid, because what you get from renting is usually more than what you pay for the mortgage, unless you haven’t paid a reasonable amount of down payment, and so your mortgage payment is too high. If you pay at least 30% of a property’s price and take a mortgage for the rest, you can make profit through renting it, because your mortgage payment won’t be that high.

Unlike what most people think, cars, shoes, clothes, phones, computers, furniture, etc. are not assets. You only waste money on them.

We follow the same strategy for the LuckScout family too. We build and buy assets to add more sources of income for the community. In the long-term, our active and loyal members’ shares from the community’s profit will go higher, while they don’t have to do anything. The points you bank now give you a share from the community’s monthly income, but they also generate income for you in the long-term through our assets. As a result, our members will become financially free, and maybe even rich. The dream that you may not be able to achieve alone, can be achieved with a community. Our community is a union that defends from your right of being financially free and rich.

This video explains how our system works:

You can see the same video as slides:

More about this revolutionary system:

And please see these pages too:

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See you on board!😃❤️🌺🌹💝🌸🎊🎉✨🌹👑🍺👏

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By Vahid Chaychi

To learn more about me, please visit the about page.

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