When shopping, purchase an asset
The second key aspect to achieve financial freedom and live a little income, focuses on how you spend your money. The meaning of active is something that generates money.
Based on this definition, we can deduce that housing, homeownership is not an asset is a responsibility, since it involves a number of expenses, utilities, maintenance, mortgage or rent, etc … Without generating any income (a rent unless of course).
So when you buy, apart from what we need would be also good that we had in mind this definition of an asset and buy whenever we can, things that we can generate some kind of benefit.
Some examples of assets are:
- Real estate, of which we will remove renting income.- Investment funds.
- Stock, buying products that then we may store, for subsequent sale.
- Stocks and shares.
- Tools or equipment, we generate profits used for a project, etc …
- Education, knowledge of languages, prepare for specific knowledge which it then uses to apply and profit.
To guide the purchase of assets, just think if in the future we generate more money, if not better let it go. Many people fail to obtain financial freedom, because they are not able to postpone the taking of immediate pleasures.
Those who buy assets, tend to be more patient and delay the immediate benefit, so that after reaching more benefits and luxuries any passive income generating assets held.
Therefore, it is interesting to remember these two aspects often:
Spending time on building a system that generates on its own benefits and some of the money spent on buying assets.
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