How to stop wasting money on liabilities and start buying assets
minnowsupport·@davidwardlow·
0.000 HBDHow to stop wasting money on liabilities and start buying assets
 # How to stop wasting money on liabilities and start buying assets # [](https://amzn.to/2laNhvy) *The secret to building wealth in the recent times is assumed to be “buy assets and avoid liabilities”. Before implementing this rule in real life, it is important to assess the difference between assets and liabilities. As per the stated definitions of “assets”, it is defined as the commodity which is able to generate a positive cash flow over the given course of time. Similarly, on the other hand, any commodity that is capable of taking money out of your hands or pockets is termed as “liability”.* *Having understood the potential differences in the meaning of the assets and liabilities, it is important to focus on building assets and stop wasting money on liabilities in order to acquire some substantial wealth over a given course of time.*  ## If you are looking forward to making more money by investing the same on assets and avoiding wasting the same on liabilities, then here are some helpful tips from us for effective wealth management: ##  • Invest in Real estate: Real estate is considered to be the biggest and the most profitable forms of valuable assets. When you purchase any property, you are required to pay the mortgages, insurances, utilities, HOA, repair & maintenance fees, etc. There is indeed a lot of money going into the property. However, if you are using them as rental properties and the rent covers your out of pocket expenses and you have some left over it is an asset. With the prices of the houses as in the real estate markets keep growing over a certain period of time you can add the gain as additional earnings if you decide to sell the property. Real estate is considered a good option for investing in assets because it forces the individuals to make conscious efforts in generating income.  # Remember the home you live in is not an asset. It is a liability! #  # How about investing in Cryptocurrency? Or Social Investing # There are many options out there today and it is easy to get confused but do your diligence. Look at [eToro social investing app](https://www.etoro.com/?dl=30001923&utm_medium=Affiliate&utm_source=71576&utm_content=0&utm_serial=&utm_campaign=&utm_term=&from_lp=whiteLP). They have a cryptocurrency option but since I have not started investing in cryptocurrency yet I have not looked into it as of yet and do not know much about it. Outside of what I am earning here on Steemit. You will see once you sign up with them and put in the required investment amount, I think it is $200, you will get a commission for everyone that signs up. I have done the same. Please click on my link so we both win. Now follow my outline below but select Europe as your target market if you do this with [eToro](https://www.etoro.com/?dl=30001923&utm_medium=Affiliate&utm_source=71576&utm_content=0&utm_serial=&utm_campaign=&utm_term=&from_lp=whiteLP). • Avoid new Cars: For many people, cars come 2nd after home as far as building assets is concerned. However, a car is not an asset! A car might be a necessity for some, while for some individuals, it might simply be an item of luxury that they must have bought as a so-called status symbol. A car is certainly not an asset. It is basically a money pit that you need to spend money on again & again without expecting any profitable return out of the same. As such, the wealth experts strongly recommend against purchasing a car. You want to build income streams out of buying assets, and not liabilities.   *It is better to buy a used car that is a couple years old or even lease a vehicle.*  ## • Take It Easy with Unimportant Things: If the primary focus in your life is with respect to earning and creating additional income streams and enhancing your personal investments, then you must take it easy on your other unimportant items. The various other items sitting around your home including furniture, TV, electrical appliances, kitchenware, expensive clothes, and so more are simply churning money out of you. If possible, it is recommended to just sit back and then take it easy step by step as you build your important assets first over everything else. ##  ## • Use Assets to Pay for Your Liabilities: By increasing your overall assets in the form of real estate, investments, and other options, you are able to increase your overall cash flow on a monthly basis. As such, when you have saved enough, you can then utilize your assets and its respective values towards paying off for your liabilities. You can use this hardcore principle towards building effective wealth out of your assets. ##  __ Learn the difference between good debt and bad debt__  • Budget Surplus Serves as an Asset: One of the most important lessons while learning to maximize asset-building is to make your surplus the expense. Rather than viewing it as an asset, you should consider the same as a means to covering your extra expenses in an effective manner. Remember saving money in the bank is losing money every year! The interest rates banks pay you for using your money doesn't keep up with inflation. Find better ways to keep some of your cash semi-liquid for emergencies but still earning more as an investment.  ## Learn from these tips about how to build assets and minimize spending on liabilities for effective wealth management. ## [](https://amzn.to/2laNhvy) # Just imagine if you sold all your junk / stuff except the basics and invested that money! # Thanks again to the following #steemcreators #onelovedtube #payitforward #minnowsupport #sharkschool #motorpool #veterans #steemsugars Legal Information Fueducation.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Fueducation.com also participates in affiliate programs with Bluehost, Clickbank, CJ, ShareASale, and other sites. 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