When we go to school and college, they do not teach us everything. There are lot of things that we need learn to make progress in life. That includes money, how to treat people who disrespect us, what to do to grow in real life. And today, we will see what is liability and you should not buy one.
What is liability and you don’t want one
What is their definition of liability?
In education system, they teach you anything you own is a liability. Most people in world follow it and they are poor. its definition according to them is: Anything you owe is a liability.
What is our definition of liability?
For us, its definition will be different. If we all are same, then we will get same results as everyone. We have to do extra to get more results in life. And that is how we become different than other because they are not ready to do that extra work. It is easy to do that extra work because no one is there. Since no one is there, you might think to give up, but you should not. You have to do it, no matter what happens. To do that extra work, it is you against you. You have to break your own records and you grow even further. You have to leave your comfort zone, be ready for it. Remember, in the end, it is worth it.
Liability definition for us is: Anything that takes money out of your wallet is a liability. Or anything that brings you down financially or mentally. Liabilities are not only physical, but they could also be at physiological level, too. You will see how to identify asset and liability, read till end.
What are physical liabilities?
First thing, your home and car are not your asset until unless they are making money for you. If you home is not generating any rent, as you bought duplex and you rent out other part and start making money. If you rent your car, then it is your asset. People’s home and car are liabilities for them, and they assume as they are their assets. Your home needs maintenance, you need to pay taxes on that real estate, in return of what you get to live there? You can live on rent and invest rest of money or start your own business and make millions. Your car need fuel to run, if its expensive then you need to pay too on everything. If you can use normal and cheap car instead of expensive one, then you saved lot of money. Buy old car because its price gets near 5 years of purchase. And sell that car after 5 years to buy new old car.
This is how you minimize your liability if you can not remove it. That’s what you have to do with each liability. People are not seeing these things and they say, “Home is their biggest asset.” Its not their fault because they have been taught in such way. You are different from them, and you want to be financially free unlike them financially dependent.
What are psychological liabilities?
We talked about physical liabilities and now its time to get psychological level. This type of liabilities are living creatures. They could be your pet, people Yea, people can be liability, too and let that sink in. If you have a pet, consider a dog and it is not making money for you then it is a liability. It does not mean that you should not love pets.
People can be liability, if they are not making money for you. But this will mean that you should not have family. Your children are your liability. As they grow, you need to spend more money on them. Because they go to college, their expenses and inflation causing price to go high. It does not mean that you should not have kids. They are good. Spending time with them is most valuable moments that you do not want to leave them. They grow too fast, and you won’t even realize it. Similar for your friends, they will be with you when you need them, and we all are humans. If you like this, then consider subscribing to our newsletter:
Psychological liabilities are people because they bring you down and make you look stupid in front of other people. If they do this for fun, they are not matured. Tell them that you don’t like it and stop doing it. Having liability make your finances go down, your mental health goes down and you do not feel good. That’s why you should buy assets.
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