The Biggest Distinction Between the Rich and the Poor
In the world we live in there is always going to be 2 kinds of society social groups, the rich and the poor.
There are many differences between each of these types of people that people are not usually aware of.
Of course everyone is familiar with the difference that one is rich and the other one is poor.
But the biggest distinction between these two types of people is that the rich obtain assets while the poor obtain liabilities.
An asset is a possession of value that is within your ownership, money that does the work for you.
A liability is something you obtain but has no value and can even start taking the value away from you.
Some examples of an asset are real estate properties, mutual funds, stock bonds and corporations.
A liability is something that increases your expenses and diminishes your profit.
It holds you back or bring you completely down depending on how bad the liability is.
Some examples of liabilities are a new car, a big house, all the luxuries and toys.
Most poor people believe that when they buy a big house of a car they are actually having an asset added to the asset column but the truth is that it is a liability.
There is a big confusion between the two and this is why so many people are poor and few people are rich.
The rich understand the difference between a liability and an asset and this financial knowledge is what makes them wealthy.
When most kids go to school they never learn anything about financial.
The worst thing about this is that the patterns encourage the kids to go to school and are not able to give them financial education.
This is why doesn't stop because the cycle just keeps on going from generation to generation.
One of the best ways to start having your own asset is to start your own business.
You're going to be able to work your business and then you are going to be able to get into the point that your money is going to start working for you.
Since you're new to this whole business and assets thing what you should do is focus on finding a business that is affordable.
There are many differences between each of these types of people that people are not usually aware of.
Of course everyone is familiar with the difference that one is rich and the other one is poor.
But the biggest distinction between these two types of people is that the rich obtain assets while the poor obtain liabilities.
An asset is a possession of value that is within your ownership, money that does the work for you.
A liability is something you obtain but has no value and can even start taking the value away from you.
Some examples of an asset are real estate properties, mutual funds, stock bonds and corporations.
A liability is something that increases your expenses and diminishes your profit.
It holds you back or bring you completely down depending on how bad the liability is.
Some examples of liabilities are a new car, a big house, all the luxuries and toys.
Most poor people believe that when they buy a big house of a car they are actually having an asset added to the asset column but the truth is that it is a liability.
There is a big confusion between the two and this is why so many people are poor and few people are rich.
The rich understand the difference between a liability and an asset and this financial knowledge is what makes them wealthy.
When most kids go to school they never learn anything about financial.
The worst thing about this is that the patterns encourage the kids to go to school and are not able to give them financial education.
This is why doesn't stop because the cycle just keeps on going from generation to generation.
One of the best ways to start having your own asset is to start your own business.
You're going to be able to work your business and then you are going to be able to get into the point that your money is going to start working for you.
Since you're new to this whole business and assets thing what you should do is focus on finding a business that is affordable.
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