Asset vs Liability
It’s a common misconception: many people mistakenly label certain purchases as assets when, in fact, they are liabilities. Let’s delve into this further.
1- New Car.
2. House
3. New Boat
This is to mention a few things people spend their hard-earned dollars on. A new car is a liability, not an asset because you will keep maintaining it. A house that you made a down payment for $100,000 and still have the mortgage to pay off in the next 30 years is also truly only an asset if it is a rental property and you are making money from it. If the house is not a rental property, it is only an asset once you pay it off. The mortgage company owns This asset by name, and you are just leasing from the mortgage for the next 30 years. When it comes to the issue of the boat. You have to maintain the boat to keep you safe in the water.
For instance, if you have $100,000 in cash, investing this money first might be more beneficial. Use the profits from your investments to fund your desired purchases. This way, your wealth can continue to grow while you enjoy the fruits of your financial prudence. Are you one of those people who spend their money on liabilities, thinking it is an asset? If you are, then the team of experts at PD Group can help you get out of the mess.
