Assets V.S Liabilities- Don't buy into the Black Friday Hoopla.

Photo Courtesy: Walmart.com

Hello all.

If there is one thing I’m efficient at, it would be money. Handling money and knowing where to place my money is something I am excellent at doing. I don’t claim to be an expert, but I have studied under several wealthy individuals that understand the subject of money. The people I have studied under helped me understand how to make money grow.

Today is Black Friday and in the honest hopes of consumers identification with material goods, rest assured, they will be out shopping like crazy, (buying on credit for the most part) and getting themselves into a lot of trouble.

Folks. We are in a recession, this recession is severe. It is so severe that it will turn into a great depression soon. Yes, buying material goods from these shops does help out their business, and yes this does to some extent help out the economy. But the truly wealthy know not to buy into the Black Friday Hoopla.

Yes, Buy items and gifts for loved ones etc. But, I don’t think this is the time to go overboard.

Let me tell you about something that I have grown to understand. What I have grown to understand is the foundation of wealth. The statement is true any way you cut it. It is a statement that is embedded in my mind and should be embedded in yours as well.

“Rich people buy assets. Poor people buy liabilities”

A rich person is someone who invests their money into something that will grow in value over time. A poor person is someone who buys things with their money that deprecate or goes down in value over time. When you buy those new pair of shoes, know that those pair of shoes are a liability. You have spent money on something that will give you instant gratification in the short-term, but long term aches and pains.

Delayed gratification is the path to wealth. Steadily and consistently purchasing assets such as real estate, silver/gold (real money), businesses, etc. are what make people richer financially.

Go out and shop today, but don’t go overboard. Be wise where you put your money today, it will cost you later down the road.

+Baker