If you don’t know the difference of Assets VS Liabilities you could be walking a very thin line between getting by and going under. I know that sounds a bit alarmist but it’s true. If you are allowing your liabilities (credit cards, car loans, etc.) to creep higher and higher as a part of your monthly budget you’re just one emergency away from going under financially. You don’t want that. I don’t want that for you. On this episode, I’m going to chat about the difference between the typical budget approach (income and expenses) and the forward-thinking budget approach I’m beginning to adopt. I hope you take the time to listen.
Outline of This Episode: ASSETS VS. LIABILITIES
- [0:40] What LIVE-BUILD-CHANGE is all about and introduction to this episode.
- [2:23] How have you been taught to think about finances?
- [3:28] Why there are not only 2 columns on your financial chart (income and expenses)
- [4:15] Defining income, expenses, liabilities, and assets (and why ASSETS are what you want to build).
- [7:21] An example of an online asset type I believe anyone can build: video courses.
- [11:18] My invitation to YOU to record a brainstorming session together.
- [13:40] Ways to use existing income to begin building assets (not financial advice, just brainstorming).
- [16:40] When you can afford that new thing and when you can’t.
Liabilities are those things that suck money OUT of your monthly budget.
You know the kind of things I’m talking about – car payments, credit card debt, credit accounts at department stores. Those are the kind of debt that do absolutely nothing for you and over time will not only deplete your monthly income but will also suck the morale out of YOU. Do what you can to begin minimizing your liabilities and begin building assets. On this episode, I’ve got some ideas about how you can start heading in that direction.
Assets VS Liabilities is a no-brainer. Assets are the way to go.
Assets are what build wealth over time. Assets are what take the pinch off of your monthly budget so that you’re doing more than just living paycheck to paycheck. They are what enable you to create margin in your expenses, breathe a little easier, and begin looking at ways you can change the world through the finances that funnel through your hands. As a steward of God’s resources, that’s your responsibility with every penny you receive.
There’s at least one way that I believe every person who listens to this episode of the podcast can begin building assets little by little in as short a time frame as 30 to 60 days. What is this magical source of assets? It’s not magic but it seems like it sometimes. It’s using your life experience and skills to create an online course. If that makes no sense to you I beg you, listen to this episode and let yourself think a big larger than you’re used to thinking.
- BOOK: Rich Dad, Poor Dad
- Dave Ramsey
- www.LiveBuildChange.com/FB – join the Live Build Change Facebook group.
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