In the modern society today, there are more people that obtained tertiary education, working hard and doing well in their career. With their status and lifestyle, they traveled a lot, seen many different parts of the world and considered themselves affluent.
The next natural course of action would be finding their dream partner and settling down to form a family and purchasing a dream home of their choice. Everything seems so perfect and smooth going…. However, is it really that perfect and wonderful ?
In reality, how many of us faced mounting debts ?
- Mortgage Debts
- Credit Card Debts
- Other Loans Liabilities
- Lifestyle extravagant expenses
With a higher income, are you spending more ? Or are you saving more ? Or investing more? When you wake up at the start of the day, what is your balance sheet like ? Zero or very little assets , maximum liabilities ? When a child arrives for a married couple, what further happens ? Higher liabilities ?
This is known as the RAT Race and we can be easily be trapped by our own actions whereby we don’t value and understand how to make Money work for us and not allowing the Power of Money to control them.
If you own a home, have you ever asked yourself truthfully, is your home really your own asset and not owned by somebody else ?
Many a times, the home can be the couple’s biggest investment, their pride and future. The reality is, the sad and absolute truth, the home is payable via a mortgage loan with sky high interest rates payments, owned by a financial institution.
Therefore, is your home an asset or liability ? Are you (the homeowner) paying your entire working life away to the mortgage loan ? The issue on the ideology of whether the home is an asset, written and thoroughly explored by Robert Kiyosaki in his “Rich Dad Poor Dad” highlights the debate on this sensitive topic. When the issue of money comes into play, high emotions tend to lower financial intelligence.
Learn the difference between an asset and liability, build up your assets column, focus on reducing liabilities and expenses.
Are you willing to do it ?
Helpful advice:)
Thanks iWalk ! Appreciate your support and glad that my article posting had helped u !