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Saturday, 29 April 2017

Few powerful tips to help you to help you stay out of recession


The problem with financial education is that it is not taught in schools. Unless your parents are at the top class they would never teach you how to be wealthy not because they don’t like you but because they don’t know how to. There are some important things to note. Your;

Assets

Liability

Income

Expenses

Assets

Are those things that bring money into your pocket, just anything that brings money into your pocket is an asset; It could be your job, business and so on. For example your job brings you monthly income that job is an asset. Some of us gather so much liability that we think are assets. For example our smart phones; they are liability because they have to recharge from time to time which takes money from our pockets. Even when we decide to sell them their monetary value reduces.

Liability

It Is anything that takes money out of your pocket, anything at all it could be your car, your Smartphone when money goes out of your pocket to pay for anything that thing is a liability.

Income

It is the total money you earn from your assets. The total money that comes to you from all the sources you have

Expense

It Is the total money you spend on you liabilities.



Unfortunately most of us only have liabilities and so our expenses are high. The rich buy assets they acquire so much assets to an extent that it outweighs their liabilities and so their expenses is less that their income. No matter how much you earn from your income you will always spend it on liabilities, you need to acquire so much assets in so much that it outweighs your liabilities and so the amount that comes into your pocket outweighs your expense. If you want to get rich you have to make your money or assets work hard for you. The idea of going to school to get a job after graduation is obsolete. In this age of recession and lack of jobs that idea will not work. There is a new idea which is financial intelligence and entrepreneurship.

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