When it comes to building financial wealth, everyone has a different strategic plan on how to do so. Moreover, when it comes to finances, people have different strategies and definitions of wealth.
For someone, wealth is having capital in real estate, for others having thousands of dollars on a bank account, while for others, real wealth is being able to earn money while others work for them, otherwise called – having passive income.
Being a millionaire nowadays is not enough, because anyone can be a millionaire.
With so many different sources on how to earn first million, being a member of a one-million-dollar-club is not that difficult. One just has to discover how to look on assets and to understand that wealth beyond only having cash.
Don't get this wrong – having cash is fine, but there is more. Being wealthy means having more: more real estate, more cars, more good assets, more neutral assets, more liabilities, and even more of worse liabilities. In this case, worse is not necessarily bad.
ASSETS AND LIABILITIES
Pros and cons are basically what they call assets and liabilities.
- Pros: properties you can rent, bonds, stocks, or real estate that produce income all belong to this category.
- Neutral goods: here are goods such as home accessories, art, gold. Moreover, anything that can be considered to be an integral part of the whole (as a collection) is a neutral asset. We call them that because they can still have a value when inflation strikes in.
- Disadvantages: deteriorate accessories like furniture, TV, and numerous personal belongings are in this group. These are usually things that are simply sitting around.
- Worse Liabilities: facilities that require monthly income in order to stay functional. Therefore, those are items such as a car, cell phone, or a boat.
Of course, to function properly in the 21st century, ...read more