If I had to propose something to you and said I’m going to give you a liability. I want you to take over my credit card debt but I’m not going to pay you for it. Would you say yes or tell me to go take a hike? Of course, you’d tell me to go take a hike.
The thing is we know what a liability is. We know when something is making us worse off in our lives and yet we still keep them.
If I look at a property analogy, a property is an asset when it puts money in your pocket. So if your rent is R10 000 and all your expenses, including your loan, is R8000 you’re getting R2000 per month. That’s an asset because it’s putting money into your pocket.
Alternatively, if you buy a property where the rent is R8000 and the bond is R10 000 then you’re losing R2000 per month. Essentially you’re becoming R2000 poorer every month.
That’s a liability – when something takes away from you. When it gives you it’s an asset.
The reason why I say people often hang on to liabilities is because of fear. We’re in relationships sometimes with people who are not encouraging us or loving us the right way. We keep friends around who are bad influences.
We’re constantly surrounding ourselves with liabilities but don’t see them as liabilities.
Today, I’m hopefully going to change your mindset to see everything as either an asset or a liability.
Do some review on your life to say, “are these people I’m spending a lot of time with an asset? are they helping me and encouraging me to where I want to be or are they holding me back?
If they’re holding you back you’ve got to cut the liability – just like I asked you in the beginning if you’d take my credit card debt.
Treat everything in your life as either an asset or a liability. Know which is which and treat them accordingly. Make sure the assets in your life are getting the time, attention and love they deserve and the liabilities are getting the treatment they deserve.