How to think of Assets in Financial Hope
When you think of an asset, just as Robert kiyosaki once said, you should think of something that puts money in your pocket.
This asset could be a job a rental property a dividend-yielding stock in a company or anything else that generates revenue into an account you control, but that’s not where an asset ends.
let’s say that you purchased a house as a rental property. That house cost you $100,000 you placed $20,000 as a down payment and took a loan out to pay the remaining $80,000. You are able to rent the rental property for $600 a month. The property has an annual tax of $850 and annual insurance costs of $1,000.
Adding that up you get:
A monthly Income of $600.00
A monthly Liability of $429.46
A monthly Expense of $154.17
Giving you a total net Income of $16.38