Earn Money Online Blog

Investing in Assets

I read it summarized recently that the reason some people do not succeed is that they invest in liabilities. Think about it, things are usually expensive and don’t provide income for you. Think about your car. You have monthly car payments, with interest. You have gas to keep it running. You have taxes, inspection, insurance. In some places you have an extra fee to park it. I could probably keep going because I haven’t begun to talk about regular servicing and repairs. So I think it’s pretty clear that cars are a liability for most people. But… let’s look at it another way…

What if you’re a taxi cab driver that owns their own vehicle. Ok, now we can more clearly see that in this case we’ve invested in an ASSET. We’ve paid money for something that we can use to MAKE money. You see, too often people think of investments as just stock investing or going to the bank and depositing money. Really we should consider any money transaction as an investment of sorts.

In the last 2 years I bought two things that I really probably shouldn’t have spent the money on. However, one of them I’ve used to recover a portion of my investment. One of these items was a Digital Audio Recorder. (I’ve got a Zoom H4 review First Impressions at another site. As I say though, I’ve used it to record and I’ve sold some of those recordings online. I’m not quite in profit yet, but at the rate sales have gone I should have recouped everything before it’s two years old. So, in that sense it was a good investment.

Another good example is a classic image of a teenager saving money to buy a lawn mower so he can make MORE money mowing lawns. The lawn mower in this sense is a real asset as it’s his vehicle for earning money. How can you turn your purchases into opportunities to make extra money?

I hope this has made you think a bit about the things we spend our money on. Check back soon.

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