The RICH Method: The definitive guide to getting money and success. Reduce your expenses, clear your debts, learn to save and invest, and reach your financial freedom. by Richard Gracia
Author:Richard Gracia [Gracia, Richard]
Language: eng
Format: mobi
Published: 2021-03-24T00:00:00+00:00
Still unclear? Let us give you an example. An asset could be an apartment you rent out, which brings you income every month through the rent your tenants pay you. Alternatively, it could be shares in a business that bring you money when dividends are paid, and generate profit for you when you sell them.
Conversely, a liability is something that takes money out of your pocket: anything that is causing losses or costing money. In short, itâs the debts or obligations we looked at in the previous chapter and which we generate over time. In this case, a loan for remodeling, finance for the latest phone, or an instant loan to fulfil some sudden whim.
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