Turn Your Liability Into Assets

The best way to multiply and use wealth is to create assets and decrease the liabilities you have. We middle-class normal people don't know the difference between 'Asset' and 'Liability'. Middle Class has actually good potential to step up from their class but our people mostly go for the liabilities instead of assets and limit our life in work, earning, eating, and living by following the same cycle. Asset making is one of the most efficient ways to multiply your sources of income and make the best use of your invested money.

But first, let's see what's the meaning behind the two terms.

Asset:- In simple words things or people which can be useful to us. It can be in the form of money, goods, and services.

Liability:- Things or people which need and cost us money or services.

We normal people invest in a lot of things on our whole but we use it as a liability, not as an accent.

How? Let me clear you about our small mistake through some examples.

• Suppose you installed a Wi-Fi connection at 60$ and per month costing for 50Mbps unlimited data is 12$. Now you have installed a very powerful device giving you high-speed data to do multiple things on the internet. It can be used as an asset and a liability both ways. If you use it only for entertainment then that's a liability for you and if you use it for work from home and do some activities to earn extra income then this invested Wifi is now an asset of yours. See it's simply not that complicated.

• Next, suppose you have purchased a car and you use it rarely like once or twice a month and it's parked in your garage then it acts as a liability because you need gas to run it, and by using your car you aren't gaining anything. And if you rent out that same car with a proper agreement you can earn a good monthly income from it then it can now act as an asset for you. Of course, it's just an example, many people buy vehicles for their own use. I would suggest if you have an old car rent it.

• Same goes for smartphone, Laptops, and PC. All can be used as an entertainment source as well as earning source. That said both in an asset and liability way. But what the majority of us do. We use it as a liability. And some of us use it as both, haha smart people.

• Some things can also be used as a liability and asset like your home and you make another floor there and rent it out. A farming field where you can grow crops and fruits and they are a liability to us till they give us the end product which is fruits and grains or vegetables depending on what you have planted. You can use them for your consumption or can even sell them.

Benefits:-

• Can be used an extra income or service source and can be even beneficial in emergency situations.

• Takes extra pressure and stress from you as when you don't have to think of it's cost and maintenance anymore as it's already giving you back something in return greater or comparable to your investment.

• Can be used by others which in a way is like helping others.

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Final Thoughts

It's not hard to turn a liability into an asset. There's no set rule. You can turn anything into an asset you just need an idea and plan to use it in the practical and digital world.

This is not a complex strategy to make the best use of your investments but rather a simple strategy. Act a little smarter and easily you will be ahead of people even though you both belong to the same background. Focus on creating using things as assets not as liability.

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