Assets are things that put money in your pocket.
Liabilities are things that take money out of your pocket.
Have kids anyway.
It is human to need "toys" or distractions.
Choose toys that last a long time.
Avoid toys that are "fashionable" because fashion changes with the seasons.
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| LC 74 means something to some people. It still works just fine. |
Choose toys (and clothes and spouses) made from durable materials. They will not let you down.
ERJ - All sound advice. I might add "choose the toys that make you happy, not the ones that people say should make you happy". You will enjoy them all the more.
ReplyDeleteAssets and liabilities are balance sheet items.
ReplyDeleteIncome (revenue) and expenses are income statement items.
It’s just awkward what you did here.
But I get your point.
And to your point, Rudyard Kipling said you can never have too much ammo.
Those are Robert Kiyosaki's definitions.
DeleteHe points out that some people purchase extravagant homes and justifying it saying "Its an asset".
Others might purchase a more modest house and then use the extra purchasing/borrowing power to buy a couple of rental units as well.
A big house cost more in terms of interest, taxes and insurance and real/physical depreciation. The modest+rental units also has those expenses but the rental units provide offsetting income streams.
The expenses like taxes,insurance are usually hidden from the home buyer because they are paid via escrow account. It is easy to be unaware of the full extent of those costs.
Appreciation is not realized until the unit is sold, and even then the amount of appreciation in terms of fiat currency is a matter of speculation. In actual, physical terms the house is older and the roof, windows, floor-coverings etc are that much closer to needing replacement.
The quote I heard from Jeff Cooper was "A man cannot have too many books, too many wines or too much ammunition" all of which I have found to be true - with one caveat, no, two; storage and transport.
DeleteBooks ( good ones and useful ones) are assets to be enjoyed again and again.
Ammunition can save your life, keep you free and fed and provide wholesome recreation. As shown in the photo, cases ,especially USGI can be reused.
Wine is the most transitory, requiring stable storage at temperature. Empty wine bottles have some utility on their own in building or as raw materials and like cartridge cases, can be refilled.
Khalil Gibran likened kids to arrows shot from your bow. Is the arrow constructed well and of good material? Was your aim and release true? That is the limit of your control over their flight. After that they are subject to outward influence and unlike the arrow, their own impulses.
It's rewarding to see your kids do well and make mostly good choices, but their flight is their own.
Boat Guy
SURE: that's what we are taught in school by the deep state system. It is wrong, wrong, wrong. I hold two degrees from those institutions and that training is dead wrong, and I have had to unlearn all of it.
DeleteThis is the truth:
Assets are things that put money in your pocket.
Liabilities are things that take money out of your pocket.
Robert Kawasaki (intentional ridicule) is not wrong but incomplete and dangerous. He does not put banking cycles in perspective and his hide bares the scars. My first house cost less than a 320i a month. (The cool Yupy car of the time.) Luckily the termites continued to hold hands while I fixed it. Banked it three times per Mr. Kawasaki. Later when my friends bought $500,000 McMansions I bought a warehouse for about the same money and still lived in a small house. Made my 240th payment on that warehouse last month. Not easy but I did it. Lawyers and fixing the roof myself along the way. Roger
DeleteLC 77 Match and LC 68 here.
ReplyDeleteIn any area of acquisition, don't chase the latest fad and don't buy the cheapest - take your time (assuming you have any) and get what fits you, be it 2 months old or 80 years old.
ReplyDeleteDon't forget maintenance and other carrying costs.
You don't fool any of us. You have a degree in Gender Studies and cannot even get a job at Subway because you refuse to make men sammiches.
ReplyDeleteLC67 in Garand clips, in bandoleers and in the original ammo can. Haven't shot any in a decade or two but I expect it'll work just fine.
ReplyDeleteIf my 1930's Turk 8mm is any indication, it'll work perfectly. And LC is quality as opposed to Turk QC.
DeleteChoose toys, hobbys and distractions that allow you to gain useful skills that translate to the real world.
ReplyDeleteYou can either have kids, or be rich... NOT both...
ReplyDeleteNo. You just have to focus on assets. Make you labor benefit you without tax in between the labor and the benefit. Let the assets make you money. Perhaps I have a broad definition of wealth or a low standard.
Deletesdfsfsdf
ReplyDelete