What does he have? The apartment where he lives - requires a monthly payment of utilities, small, and sometimes even major repairs, you have to pay tax, etc. Net liabilities. Car? Petrol, insurance, taxes, repairs, fines, parking, etc. - Liability. Cottage - passive. Cell. phone, stereo, garage, etc. - All liabilities, because I always take the money out of your wallet. And assets that man is? After much thought, this person will be able to produce a single asset - is its ability to work, to work,and it only brings money to this man and all else that he has, just takes money.
Look what happens - in one asset for many, many liabilities, a man bent under the weight of liabilities, the money he is constantly missing. It would seem the most sensible - or to throw off the liabilities of that they have ceased to take his money, or increase the amount of assets and thus increase the amount of money that comes to him monthly.
However, most people somehow act differently: they increase the amount of liabilities! Yes, strange but true. Got some money - people choose to buy a new car (more expensive insurance, operating costs, higher costs for parking, etc. Hence, the monthly car will pick you even more money), or if the car is not enough, the new mobile phone and etc. I have nothing against buying these nice things, but, all the time. A wise man will buy it all when it will have sufficient assets. Buy liabilities, when you have only one asset - a very bad and dangerous decision. Liabilities will crush you with its weight. Nadorvetes.
The vast majority of people, having a sole source of income - their ability to work in any way, TOTALLY did this single source is not protected! In other words, each of us can, because of some tragic accident (car accident, for example), has lost the ability to work - that is to be disabled. Your liabilities are not going anywhere and will require money every month, and the only asset you own irretrievably lost. What do you do? You can be in a dire financial situation, and nothing will be impossible to do. The only protection against this severe risk - buying an insurance policy. While there is no such protection, you're in a very precarious situation. Even if you are incapacitated at the time (seriously ill, broke his leg, etc.), then, having no financial reserves and having a lot of liabilities, you'll find yourself in a pickle.
By the way, almost every car owner does not hit the road as long as do not buy a policy. This is natural, because you / or you can do great damage, which then have to repay or pay for many years, why risk it? But you will agree that this is even on the road, but the glands, broke - at the very least you can get out. But with almost every auto insurance policy to have. A precious, unique health and ability to work and thus earn their money on the lives of almost no fear! Yes, you health insurance policy will not return, but will provide a material in a situation where you can not work, or else - poverty. It is therefore recommended to select and buy a policy that protects the health and lives, and create a financial reserve for ourselves (in sizes 3-6 months of your expenses).
So, you need to buy the assets and liabilities to refrain from buying. Then what to buy, what assets are available? When a person is first the question, it becomes an investor.
He thinks about what he can to put their capital to maintain and / or increase the purchasing power of their capital. Investors this is a mass of instruments, but they are I will not tell because this is not the subject of my blog. When you sozreesh to invest, you'll be able to understand myself and explore different options.
It would wish.
How you can start:
get rid of the obvious liabilities. These are liabilities that do not bring anything good. Can you give someone a birthday:)
Necessary to optimize liabilities. This is your apartment, a car (unless it is constantly in the garage) is a mobile phone. Without them, life is difficult, but you can save water, convert car to gas and to choose more optimal tariff for the phone.
Increase assets. Protect the sources of assets (keep track of health, for example)