Mad_About_Money_final Mad About Money_Dec 2016 | Page 22

MadAbout

MadAbout

Money

Money

P

iling on liabilities
on yourself is an
added stress and
not an asset. Still, you
create more liabilities
unreasonably rather than
investing in assets. Why?
Maybe, your inability to
differentiate between liabilities and assets keeps
you away from gaining
wealth. Those who excel
in this art carry the tag of
being wealthy, those who
don’t struggle with them
as liabilities.

Not having liability
is a great asset
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Following facts will give
you a gist of things that
will help you understand
why investing money
in liabilities isn’t wise
and how to differentiate
between each of it.

An Insight
– Liabilities
and assets
Let’s take up a simple
example of a house
you’ve purchased and

stocks you’ve invested
in enact as assets and
liabilities.
If you have bought a
flat as an investment
and just kept it just like
that, do you think this is
your asset? Think again!
Anything that demands
maintenance and cash
outflow is a liability. You
might have given a lot
of thought for this and
invested a lot of money,
but it is a sitting duck and
not giving any returns.
But, if you had put it
on rent and the rentals
were coming from that
property, it becomes an
asset as there is a cash
inflow from a source
you’ve invested.
Another example of
assets is the investments
done in stocks. The
stock market fluctuates
according to market
trends. If the market
shows positive results,
it will reap monetary
benefits to you and
build your assets in no
time. But, it can also
act in reverse direction,
which can be termed as
liabilities.
Hence, it is you who
needs to have an eye
on your actions to stop
piling upon liabilities.

Being
observant
is wise
There are times
when you miss on a
lucrative asset building
opportunity just because
you lost an important
link associated with it; or

probably you weren’t as
observant as you should
have been. For example,
losing your old business
partners or for that
matter, even employees
sometimes, act as
liabilities and all the wise
people who are wealthy
don’t work on such
principals and thus, stay
away from being liable
for anything that can
minimize their money.
Hence, every opportunity
coming your way might
not be an asset and
vice-a-versa. The only
trick to keeping up your
spirits high and play safe
is to stay focused and let
your materialistic desires
rest aside to enjoy your
wealth pot to the brim
always.

Pile up
assets, not
liabilities
Free yourself from debts
that have been going on
for a long period. Doing

so, will not only free your
mind from it completely,
you will be able to focus
on other financial aspects
related to asset building
in a better manner.

The rich and the
wealthy never
plan their wealth
maximization by
single cash inflows,
and debts don’t
have any space
in their money
making strategies.
Instead, they make
investments at
places that can
generate positive
and 100% cash
inflows. So, start
building your assets
today with a clear
vision and a rational
mind to enjoy
strong financial
holdings in future.

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