As recent studies show, the level of financial literacy among the inhabitants of our country is at the lowest level among European countries. The inability to plan a family budget, maintain a balance of assets and liabilities, refusal to create passive sources of income - unfortunately, the realities in which we live. Today, we will try to change this trend a little, and tell you about assets and liabilities using the example of buying a car and investing in trading.
Why a car is a liability
Having heard the statement that the car is a liability, many object, claiming that the car is not just a necessary attribute, but also helps to save money. In fact, this type of transport often drives people into a financial hole, and now we will tell you why.
Answering the question: "How much does a car cost for a family?", most people name the price for which the car was purchased. However, in reality, a car often costs much more, because judge for yourself, it needs to be refueled, repaired, washed, serviced, bought winter tires and various consumables for it. If you think that these costs are not high, then keep in mind that just refueling with gasoline for $ 3 per day will amount to $ 1,000 per year, and the car maintenance itself will cost you at least $ 1,500. Thus, a car purchased for 10 thousand, over five years of operation, will add another 12.5 thousand to its value.
How to create assets
As wealthy people teach, our capital grows only if our assets exceed our liabilities. That is, there should be more sources of income than our expenses. Of course, none of us can get 4 jobs at once and spend our whole life in such a rhythm. However, we can create sources of passive income, and there can be a huge number of them. For example, you can buy Bashneft shares , and for insurance buy Gazprom Neft shares , to capitalize on market correlations. However, investments in securities work only in the long term, and for faster earnings, you can use Forex trading. It does not matter which option you choose, in any case, you will create additional income, which tends to accumulate, and makes it possible to reinvest funds to create equity capital. Remember, any invested funds must be defined as an asset or a liability, and this is how you should make your choice in investments.