To complete your financial education, we'll discuss some concepts of accounting including l´importance of the difference between active and passive.
The assets consist of all values capable of directly or indirectly generate revenue materialized by the sums that come into your bank account. An asset is something that hopefully a future economic benefit. More simply and to better understand I take the definition of Robert kiyosaki, assets are something that puts money in your pocket.
The most common assets and the associated revenues are as follows:
• work and salary;
• the real estate will be considered as an asset only if it generates rents, so incomes;
• the actions of a company that produce dividend;
• financial investments that generate interest income.
Liabilities are materialized by the various debts, as well as the cost of the necessities you need to assume and that generate spending.
The most common liabilities and associated expenditures are:
• taxation and income tax,
• credits and interest expense,
• all the necessities of life: food, clothing, recreation, etc. objects.
• alimony, fines, etc.
Why acquire more d´actifs?
You need to possess and acquire more assets than liabilities. Indeed if you want to enrich you your assets are as the source of life and your liabilities are death, I simplify to l´extreme in this example. In fact if you have much d´actifs you increase your margin for manoeuvre, because you can afford more stuff or more breakage. Conversely liabilities you cost money, for example, if you buy a brilliant Ferari and new, cost maintenance for a vehicle of this type will eventually suffocate more one d´entre we.
In addition, if you have many assets you can maintain greater liabilities. So now you have investments such as those from my article d´investissement families
Your target with these sub-objectives
With three still present objectives in mind:
• grow your assets,
• control and reduce your liabilities,
• ensure that your recipes are greater than your expenses.
1 / invest only in assets that will be worth potentially more expensive tomorrow, and/or capable of generating wealth and income. (Your relationship, bonds)
2 / never use credit to buy something that can potentially be cheaper tomorrow. (Typically a beautiful car)