Assets where to get them. Assets and liabilities

Do you want to get rich? Just don’t think about how to live from paycheck to paycheck, but know for sure that in any case, a certain amount will arrive in your bank account every month?

Then you will have to take a short course in applied accounting for home use and figure out what your individual assets and liabilities are, what makes a person richer, and what invariably leads to poverty.

Introduction

Any balance sheet consists of two parts: assets and liabilities. But we will not deal with the intricacies of accounting, we will understand one thing for ourselves: an asset is what brings profit and a liability is what takes profit, that is, your money.

In relation to your own wallet, you can say this: sources that generate income (various types of business, salary) are an asset, and sources that require spending (utility payments, car insurance, loans, taxes, etc.) are a liability.

Robert Kiyosaki described this concept very well. The table below clearly shows what brings in income and what takes it away:

A simple diagram by Robert Kiyosaki showing us how the sources of assets and liabilities influence.

But money can also get into your wallet in different ways. If this is borrowed money, then we will have to pay it back, and sometimes even with interest. Then it is no longer an asset, but a full-fledged and burdensome liability. Managing your own cash flow is the main task facing a person who wants to achieve sustainable wealth.

How to create an asset

Your assets can become.

• PAMM accounts
• Business, etc.

Financial literacy

Financial literacy even at the most basic level can help shape the worldview of a wealthy person. But a rich man really thinks differently. His thought is not aimed at spending what he has saved up and buying another yacht. He is puzzled, first of all, by increasing his capital, which will bring profit.

In order to live without any special need, you need to keep your assets and liabilities in a state of balance. Try to make a list of your own assets: most people may only have one number in this column - their monthly salary. But the liability will be overloaded. There will be utility bills, expenses for maintaining yourself and your family, debts, and loan payments.

Yours Financial independence from external circumstances begins when the asset column begins to increase and the liabilities decrease. And here the point is not to increase the figure that indicates monthly income in the form of salary. It is important to increase assets in quality and reduce liabilities in quantity. No matter how boring it sounds, but you need to learn how to wisely save the money you receive. And instead of unreasonable and unnecessary expenses, invest money in acquiring assets.

Ideally, assets generate income for their owner without his participation. For example, you put money on a deposit. The bank charges you interest; your participation in generating income ends with the procedure for making the initial deposit. Then the asset is formed independently. Subsequently, your management of the created asset can continue in the direction of increasing it: you can replenish your account, transfer money to a deposit with more favorable interest rates, withdraw money and invest it in stocks, gold, etc.

This way your “active” column will multiply and diversify. The day will come when you won't have to worry about losing your paycheck. The previously invested money will work for you. And if you continue the process of investing money in profitable financial instruments, you can consider yourself a wealthy person.

Below you will find several useful articles that will help you take the first steps towards financial independence:

So, what are the differences between the rich and the poor? Rich man:

• Constantly trains the mind to develop new ways to make money from money.

• He is not afraid of healthy risks when investing money, takes advantage of every chance that arises, and believes in a favorable combination of circumstances.

• Practices constant self-discipline in spending funds.

• Focused on the goal of increasing one's own assets.

• Invests money profitably, prefers planning for the future.

• Does not seek immediate benefits.

Conclusion

To achieve sustainable wealth, it is not enough just to learn how to make money. To reduce the share of liabilities in your balance sheet, you need to learn constant self-control in spending and spend money so that the liability turns into an asset.

For example, you decide to invest money in real estate. If you use it personally, then, despite such a seemingly significant purchase, indicating the availability of finances, it will be a clear liability for you. After all, you will have to pay for the maintenance of the apartment, utility bills, and make repairs from time to time.

And if the same purchased apartment will be used for rental, and the amount of monthly income from its rental exceeds the costs of maintenance and operation, then the apartment can be recognized as an asset, because you receive income from owning this property.

In conclusion, I would like to give some practical advice on mastering the skills of a rich person.

• Learn to manage your money.

• Communicate with wealthy people and observe their financial mentality, learn from them.

• Master financial literacy.

• Be willing to change your money habits and break down the psychological barrier that separates you from wealth.

• Constantly strive to reduce liabilities, avoid debts and loans, and control unproductive expenses.

Assets- This is everything that can generate money. And the liability, accordingly, is everything that takes away this money. According to many economists, in order to become rich you need to get rid of liabilities and acquire assets. Yes, it's a simple formula, but if you look at it, that's how it is.

Many people who are not at all familiar with the economic topic often confuse these concepts, but if you look into it, it is not at all difficult to understand their differences, because these are completely opposite definitions.

In order to answer the question of how to acquire assets, you need to understand for what purpose you need to attract them to yourself, and, on the contrary, move away from liabilities as far as possible.

In simple words, we can say that an asset is the generation of cash flow, that is, the sale of what you have.

What can be an asset?

The following things can act as an asset:

• Bank deposit;
• Property that is leased;
• Securities;
• Other items that are rented out for profit include cars, personal items, and clothing.

But the car and the apartment where you live are a liability, because you invest in these things yourself, take care of them and spend money on their maintenance. And, for example, if you use your car as a taxi driver, then it acts as an asset. Passive– this is something that can take away money.

Below are some tips on how to how to acquire assets. If you chose real estate as an asset, it is best if these are foreign assets from which you can get higher income. You just need to approach the choice of country wisely; it is worth remembering that it must first of all be economically developed. If you learn everything, then you can receive rental income of up to thirty percent per year.

If you don’t have enough money to buy a home, you can also buy it on credit by cooperating with banks in other countries; in practice, it shows that there are more favorable offers for customers there. But if this option does not suit you, then you can purchase real estate under construction, and when the time comes, sell it at a profit.

Developing companies will bring good income, but you just need to first study this area of ​​the market.

If you want to work with assets, but do not have the opportunity to purchase them, you need to start saving for them. Each salary needs to be set aside ten percent to invest assets. At first glance, this may not seem profitable, but in practice it brings good income.

It must be remembered that only those who invest large amounts of money in them can earn big money from assets.

Anyone should gain as much knowledge as possible about how to profitably buy assets and limit their liabilities.

The video below shows what they are.

Most people who have a more or less significant amount of money understand that keeping it in their nightstands at home is stupid. Money must work. This financial axiom is deeply entrenched in the minds of every person. At the same time, potential investors understand that the investment process is associated with the risk of partial or complete loss of funds. Such people are looking not only for profitable, but also for reliable investments.

Moreover, for many investors, investment safety is the main criterion by which they evaluate investment instruments. Fortunately, there are now several avenues for investing money that represent safe investments.

Today, all bank deposits in Russia in the amount of up to 1.4 million rubles can be considered extremely reliable. Moreover, they should be considered as a risk-free investment. This is explained simply.

The fact is that, in accordance with the current financial legislation of the Russian Federation, each bank is obliged to insure the deposits of its clients. Strict compliance with this provision of the law is ensured by the Deposit Insurance Agency.

In the conditions of recent years, when the Central Bank of the Russian Federation annually revokes licenses from several dozen commercial banks, this insurance mechanism has been repeatedly tested in practice. It really works. Moreover, in addition to the deposit amount itself, the bank client receives back the interest that should have been accrued while the financial and credit organization was still functioning.

Thus, every investor who wants to increase money, but does not want to take risks, can invest it in the bank. In addition, with an effectively functioning deposit insurance system, there is no need to delve deeply into the essence of the issue. It is enough to contact the financial and credit organization that currently offers the maximum interest rate on the deposit.

Advantages of investing in a bank deposit:

• it is a simple, understandable and familiar investment instrument;
• Even the owner of a small amount of 1000 rubles can open a deposit;
• a huge number of products with different conditions;
• high liquidity of the financial instrument, since the investor can receive his money in cash at any time.

Currently, bank deposits have only one disadvantage, but for many potential investors it is decisive and forces them to look for other options for investing money. Deposits are not the most profitable investments. Often they may not allow you to increase capital at all.

The fact is that when we analyze capital investments, we should never forget about inflation, which annually depreciates money by several percent. Let's take 2017. According to forecasts by the Central Bank of the Russian Federation and leading financiers, inflation rates for the year should be 4.5–5.5%. At the same time, interest rates on deposits fluctuate between 5.4–10.5%.

Gold and precious metals

When it comes to safe investments, many people think of gold and gold bullion coins. Everything that will be said below will equally apply to other precious metals (platinum, silver). However, for convenience and brevity of presentation, we will use only the term gold.

Traditionally, investing in gold is viewed from the point of view of high reliability. If we look at the dynamics of the exchange value of this precious metal, we can see constant and sustainable growth.

An investor who decides to invest in gold will inevitably face the problem of which financial instrument is best to choose. Gold bars and bullion coins come to mind. You can store your money in both.

However, it is much preferable to choose investment gold coins. By some strange whim of Russian legislators, any person who wishes to buy a gold bar from a bank will be required to pay VAT or value added tax. Its rate is 18%. But if we pay 18% in addition to the cost of the investment asset, then it is impossible to talk about any highly profitable investments.

At the same time, transactions for the purchase and sale of gold investment and collectible coins are not subject to additional tax burden.

The benefits of purchasing gold are that it is also a stable and virtually risk-free investment. But the shortcomings should again be sought in the extremely low reliability. If we exclude short-term speculative market issues, then the rise in precious metals prices follows inflation. That is, such an investment of money is primarily intended to save it during periods of economic instability or crisis.

Residential and commercial real estate

Smart investments in real estate allow you to get quite a substantial profit in a relatively short period of time. In addition, apartments, office premises, buildings and structures are actually existing tangible objects. This circumstance always adds confidence to the investor.

High-yield real estate investments involve two main strategies. The first is to buy a property at one price and then sell it for more. This is a common speculative approach. The second strategy involves purchasing an apartment or non-residential premises for the purpose of subsequently renting them out.

In addition, if an investor has serious financial capabilities, he can purchase real estate not only in Russia, but also abroad. Apartments and non-residential premises located in large cities in highly developed countries of Western Europe, East Asia and North America can bring the greatest profit. We are talking about China, Japan, USA, Canada, Switzerland and Germany. If you are interested in specific cities, these are Shanghai, Tokyo, New York, Toronto, Zurich and Dusseldorf.

Reliability is not the only advantage of investing in real estate. In addition, this is a highly profitable asset, the value of which will constantly increase. The last statement will be true provided that you buy an apartment or office in the right location.

However, investing in real estate also has significant disadvantages. First of all, this is the low liquidity of the asset. Simply put, it is quite difficult to sell an apartment or office space quickly at an attractive market price. In addition, real estate implies constant expenses that fall on its owner. These are taxes, expenses for utilities and repairs.

Currency

Until recently, currency was also considered as an extremely reliable and quite profitable investment object. However, today everything is not so clear.

In recent years, Russians have most often invested their own savings in euros or American dollars. But at present the situation in the United States and the European Union can hardly be called completely stable. This concerns the United States of America to a lesser extent, and the EU to a greater extent.

In this regard, if out of habit you want to invest your money in foreign currency, then you should choose the American dollar. But there are also big questions about the profitability of such investments in the near future.

conclusions

Investment morals are always very simple: there are no both high-yield and low-risk investments. Remember, if some company offers you to invest money on too favorable terms and talks about 100% guarantees, then this is another reason to be wary and carefully analyze the current situation.

While reading R. Kiyosaki’s book “Rich Dad, Poor Dad,” the most difficult thing for me seemed to be the statement that you don’t need money to make money. My brain, accustomed to clear and understandable algorithms, simply refused to understand this. But now, having completely devoted myself to the topic of investment, I realized that I myself could create new assets without absolutely needing cash. Initial data. Borrower B owes me $1,000 as interest under the loan agreement, $260 as a penalty and $840 as payment of interest for the previous month, issued in the form of a receipt, a total of $2,100, but the ability to pay the entire amount is he is not there. Partner B. owns a plot of 10 acres 16 km from the Moscow Ring Road, which he values ​​at $5,000 and which is listed as a liability in his financial report. Client M. wishes to place $2,000 on a loan at 5% per month. I owe partner B.

How to acquire assets

His thought is not aimed at spending what he has saved up and buying another yacht. He is puzzled, first of all, by increasing his capital, which will bring profit.
In order to live without any special need, you need to keep your assets and liabilities in a state of balance. Try to make a list of your own assets: most people may only have one number in this column - their monthly salary.
But the liability will be overloaded. There will be utility bills, expenses for maintaining yourself and your family, debts, and loan payments. Your financial independence from external circumstances begins when the asset column begins to increase and the liabilities begin to decrease.
And here the point is not to increase the figure that indicates monthly income in the form of salary. It is important to increase assets in quality and reduce liabilities in quantity.

Assets and liabilities

Where to get assets? How to earn money? and Where to find business ideas? Not everyone who strives to earn a million earns it, but those who do not strive will never earn it. The main postulate in the question of how to get rich is that wealth is the result of actions, but not knowledge.

A rich person is a person who has the potential for income. That is, in a broad sense, this is what brings you profit, and not necessarily only monetary.

The actions of those who strive to get rich (and this is exactly what we should strive for) should be aimed at increasing the quantity and quality of their assets. Where to get assets? How to make money and where to find business ideas? There are two options: you can buy them, or you can start creating them. There are also rare cases, such as receiving an inheritance, but we will not consider them due to their uniqueness. To purchase an asset, you need money.

How to purchase assets?

Therefore, you need to set yourself a clear goal and write it down. But what is the “right goal”? This is the goal from which it is clear what needs to be done.

For example, finding 5 new clients a day is a goal, but buying a car or increasing income by $1000 per month is a wish. Wishes are always the first to come to mind, but here you need to understand what goals to set for yourself so that these wishes can come true.

We have determined how to do this. But what to do? Where to start without any assets. This is where the Internet can come to the rescue; its advantage is that it can always be at hand and accessible at any time of the day.
But remember that there are no freebies on the World Wide Web and are not expected, although many people understand this when they go through a long and difficult path, encountering all kinds of scams and pyramids along the way.
To reduce the share of liabilities in your balance sheet, you need to learn constant self-control in spending and spend money so that the liability turns into an asset. For example, you decide to invest money in real estate. If you use it personally, then, despite such a seemingly significant purchase, indicating the availability of finances, it will be a clear liability for you.

After all, you will have to pay for the maintenance of the apartment, utility bills, and make repairs from time to time. And if the same purchased apartment will be used for rental, and the amount of monthly income from its rental exceeds the costs of maintenance and operation, then the apartment can be recognized as an asset, because you receive income from owning this property. In conclusion, I would like to give some practical advice on mastering the skills of a rich person.

Where to get assets? how to earn money? and where to find business ideas?

No matter how boring it sounds, you need to learn how to wisely save the money you receive. And instead of unreasonable and unnecessary expenses, invest money in acquiring assets.

Ideally, assets generate income for their owner without his participation. For example, you put money on a deposit. The bank charges you interest; your participation in generating income ends with the procedure for making the initial deposit.

Then the asset is formed independently. Subsequently, your management of the created asset can continue in the direction of increasing it: you can replenish your account, transfer money to a deposit with more favorable interest rates, withdraw money and invest it in stocks, gold, etc. This way your “active” column will multiply and diversify.

The day will come when you won't have to worry about losing your paycheck. The previously invested money will work for you.

Creation of new assets without additional investments. example 1

For novice investors, the first purchase may be a garage in a cooperative. This asset is not so expensive compared to housing, but brings a stable monthly income. Having several garages in a cooperative, the investor will receive passive income while minding his own business. Having a certain starting capital, many people begin to acquire real estate assets. This market is full of offers from which you can find profitable options for investing your funds. Renting out real estate will allow you to receive a stable cash flow. You can purchase assets without having initial capital. Purchasing real estate on credit for subsequent rental can be an excellent way to generate passive income.
You just need to approach the choice of real estate wisely and find a favorable loan offer. Calculate your strength if you buy real estate on credit.

Purchasing assets: is it that simple?

You just need to look at the “threats” of this or that action in relation to your budget. Any transaction simultaneously affects both assets and liabilities - and this must be remembered. To put it even more correctly, you need to operate with the balance sheet, and not with actually existing objects. Let's remember the house shown in the first example. It went from being a source of income to a source of liability.

But he himself remained unchanged. This means that we need to make a minimal impact that will help get rid of the harmful influence of the surrounding buildings, increase its attractiveness for renters in other ways - then profits will also increase. Do you understand? The task is not so mechanical: buy/sell profitable or unprofitable.

The task is to correct the balance through your skillful management.

Do you want to get rich? Just don’t think about how to live from paycheck to paycheck, but know for sure that in any case, a certain amount will arrive in your bank account every month? Then you will have to take a short course in applied accounting for home use and figure out what your individual assets and liabilities are, what makes a person richer, and what invariably leads to poverty. Introduction Any balance sheet consists of two parts: assets and liabilities.

But we will not deal with the intricacies of accounting, we will understand one thing for ourselves: an asset is what brings profit and a liability is what takes profit, that is, your money. In relation to your own wallet, you can say this: sources that generate income (various types of business, salary) are an asset, and sources that require spending (utility payments, car insurance, loans, taxes, etc.) are a liability.

How to buy assets without money

An asset is anything that puts money in your pocket. A liability is, accordingly, everything that takes this money out of your pocket.

This is the most general and simplest definition of an asset and a liability. Acquiring assets and getting rid of liabilities is all the necessary amount of knowledge that is needed in order to become rich (according to Robert Kiyosaki).

Despite the apparent simplicity and unambiguity, people often confuse these two concepts or mistake one for the other. It is all the more important to clearly understand for yourself what assets and liabilities actually are and why you need to get rid of some and attract others in every possible way.

What are assets and liabilities? An asset is, in other words, something that is capable of generating cash flow. Or this is something that you already have, and you are going to sell IT in the future and get more money for IT than you spent.