Have you everthough think and rethink what you learn during college time or high school accounting classes?? If you still remember, teacher always tought their student.... what??
Liability and Asset?
I believe until today, you still carry the concept of Car & House is your asset.
But is this true?? When you borrow tone of money from bank and buy your so call ASSET "Car and House".
Do you think this will be price appreciate on the long run?? But bro, I have to tell you a fact.... your car is depreciate over the long run and that not your asset... REASON is your car can only take money out from your POCKET, why I also said your House is also a Liability??
If you carry your house and stay for long run... have your house made you some money?? or generate income for you?? Yes, maybe your property and home is appreciate over the long run... but he never bring you to financial free.. its more like a burden to your life and slowing down the speed you getting rich!!
You made installment for your home as long as 30 years or more... Let say the interest rate is just PROPERTY you acquire is RM400, 000 and interest rate is 4.4%
Over 30 years, you have to pay RM480,000 for your preperty' Interest and your total spend is RM880,000 ..... just imaging how you going to spend your life and etc.
If you are not buying a LIABILITY HOUSE, Car and put your money into an Investment Portforlio... Anual Return just 4% (Compounding Interest) your money will be RM1, 297 359.00
See the difference??
So RETHINK!!! What you learn in school is RIGHT or drive you to another RAT RACE Generation??
This is really a good article you have share. This is one of the best way to grow your money. Stock exchanging is difficult, you must have the option to face the down days without panic exchanging. I see down days as purchasing fortuitous, if your in for long period and if you confidence in the stock.
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