Wealth101: Assets vs Liabilities-Income, Expenses, Assets, Liabilities Assets add to your income and liabilities take from your income
The poor cash-flow: A salary is made they pay-Expenses:taxes, rent, food, transportation, etc.
The Middle-class cash flow: Income (rental inc, Dividend, interest, royalties)-Expenses: real estate, stocks, bonds, intellectual properties, etc. Assets are: Real estate, stocks, bonds, intellectual properties, etc. Liabilities: Mortgage, consumer loans, and credit cards.
The Wealth cash flow: Income-expenses (taxes, mortgage pament, car payment, credit card payment, school loan payment, etc) No more buying assets. Liabilities: Mortgage, car loans, credit cards, school loans.
The Employee:
Work for an employer.
Work for the government. A % percentage payed in taxes.
Work for the bank: Mortgage payments and credit card debt. Is a house an asset? You pay for a house that you'll NEVER ON because you are paying PROPERTY TAXES. And these taxes can increase yearly. You are paying a 30-year mortgage, plus interest to the bank, plus property tax to end owning what? Property tax is to make sure you pay your local government for having a home in the land in that city and state. This is a loss of time and capital. what a waste of money and your years of paying $$$ instead of investing to own. Surround yourself with bankers, realtors, doctors, accountants, advisors, and etc. to gain wealth wisdom. The rich buy assets, the poor only have expenses, and the middle-class buy liabilities they think are assets. Financial Aptitude: What you do with money when it's made, how to keep it, and how to make money with money.

















