Increase Your Value!

In my earlier blogs, I've written about the differentiations of the two in my revise version of Mr. Robert Kiyosaki's definition. I say anything that we obtain which improves our value is an asset and anything in reverse of this is a liability.

If buying a car increases your value, then it is an asset. If buying a house increase your value, then by all means buy a house. So the major challenge really is how do we make things we accumulate assets. That is the 5 million dollar question. You want to know the answer?

It's all about net value, or net cash flow. So for example, you buy a house, pay it 2M Php and resell it to more than 2M then it is an asset. Or you rent it out and earn you more than 10% per year on top of the depreciation cost of the house, then it is an asset. Buy a car and you pay it with the rental income of the car plus minimum of 10% rate of return, then it is an asset.

Your next question is why 10%? I use 10% as my baseline for how much minimum you can earn if you put your money on Mutual Funds or Stocks Equity.

Let's go beyond material things. Let's talk about education, training, seminars and travels. Are spending on these turns to asset or liabilities? Why do we get ourselves through all these hassles of reading books, answering assignments, doing research and all the headaches? Check it out by looking at your value as a person. Are you paid higher? Are you able to do more higher paying tasks, or do you achieve higher rate of returns on your investments because of what you learned? If you're answer is yes, then , your spending is turned into assets.

Want to know more? Send me your comments and inquiries .

God bless!