Any purchase means an expense. The difference is in understanding what new income generated in the future and which will only bring more expenses.
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There are three types of "savers": those who run to buy goods and objects to immobilize their money, the austere and religiously guarding their money in a mattress, and investors, who spend their money to make more money things.
What sets these three savers custom food trucks is a vital question: What is truly an investment? The trick is to understand when to use the money to buy liabilities and when used to buy assets.
What car is best investment: a Lamborghini or an ice cream? Think twice before you answer, because if you choose the first option, custom food trucks you may still not know the difference between an asset and a liability.
Every car depreciates over the years. It also creates gasoline expenses, washed, insurance, custom food trucks spare parts and an occasional fine. If to this we add the fixed monthly fee, your "investment" custom food trucks instead of augmenting its capital is limiting their purchasing power, generating an "anchoring effect" that only generates losses.
If you buy a Lamborghini only at the whim of his girlfriend out for a walk, most likely end up selling it before the second oil change at a lower price than you bought it for.
If your choice custom food trucks would have been the ice cream cart, surely he would have faced the same charges, but with two unique advantages: first, it would be cheaper to quickly regained investment and, second, that surely would have been able to cover costs and generate income quickly, thanks to the sale of ice cream.
That reduces all liabilities are expenses and assets, all of which generate income. If the property you buy at the end of the year is worth more and is generating an income, it is an asset. If on the other hand has been devalued and only generates income, then it is a liability. The key is to spend the most money to buy assets rather than liabilities.
The assets can also generate costs, the difference is that revenue in the medium and long term are large enough to cover them. The more revenue and less spending generates, the better the asset. The key is that additional income you reinvest know so that your assets grow exponentially and so eventually maintain custom food trucks their own, without you needing to invest more on time or money.
It is not a life of deprivation, but to know when a purchase is an asset or a liability. Do not spend your money in the cart you can afford now, you can do that in a few years you'll have enough money to buy the "big car" you always dreamed of truth.
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