Do you know the difference between an asset and a liability? Some people will say the most common definition of both which is: An asset is anything that you own is worth something-that could be “turned into money.” Liabilities are the opposite of assets. Liabilities take money out of your pocket.
We often see our possessions like our car, computer, phone, tablet, etc. as assets but what we must realize is that all of those things lose their value and when we go to sell them or trade them, we are actually losing our money. Now, of course we have to have all of these “assets” but we can make up for the loss we encounter by investing in bigger assets that will actually make us money. Like a business.
Your business has the potential to become your most valued asset if you are willing to put the time and effort into building it. Instead of worrying about having the newest phone or vehicle, we should be worrying about constructing a strong platform for our business to be built on. I put my heart and soul into my business and it has become my greatest asset and I continue to work hard to build it even bigger each day. I know that if I continue to focus on the bigger picture, my other depreciating assets won’t be as great of a liability as before.
When constructing your business try to think of the residual income that can be acquired if you work it the right way. If you can manage to build your business into your strongest asset, you won’t have to worry about what car you purchase, or what phone you have, because your business will counteract all of those liabilities and you will have a steady stream of income. Your profits will outweigh your expenses greatly!!
This week I want to encourage you to focus on your business and building your real assets. Invest your time into something that will continue to bring you income after years have passed, not something that will lose it’s value and cost you more money in the long run!!