But after reading it again since i think i'm going to face the financial world in a few more years, everything just make sense to me...
This book is really good and full of knowledge for teenagers like us whom most of the time, we're financially well provided by our beloved..
However, it must be noted that sometimes, bad incidents would occur and to avoid having financial collapse, what i can suggest to you guys here, is to read this book...
It taught me to distinguish between assets and liabilities which i guess most of us though we knew the difference them...
well, i shall say here is that we dont...
Most of us thought that homes/ houses are assets, but is it really true???
No offence here but even for myself i felt so stupid for thinking that house is asset but in a fact, is a liability
why is it called a liability and not an asset.
Let me explain here. A liability is when you have to fork out money from your pocket to maintain it as in paying mortgage out of the house, electricity, water and other expenses.
while on the other hand, an asset is when you obtained income from it. Make any sense now??
So lets think again, is your is an asset or a liability??
for me i'm sure that my house is a liability cause my family is still paying mortgages for it which hurt our pocket...
And that's one of the reason why most of the rich people only buy a fuking big house when they have extra income or when they buy cars under their company's name.
One of the reason they did so is because company's expenses is included in the pre-tax (if not mistaken) and by doing so, they would not be charge higher tax after deducting their pre-tax profit...
Anyway, what my conclusion here is that try to get this book and read it when you're free or even before you go dozed... OK?? as i'm sure it'll help us in the future...
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