Assets Versus Liabilities: Knowing The Difference Will Greatly Affect Your Online Business
By Milo Pabawena
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Expert Author Milo Pabawena
Everyone who is reading this article is now part of a virtual classroom where today's lesson is all about knowing the difference between what the difference is between an asset and a liability. Pay close attention because it is very important to know what the difference is and how you can earn money from home. I want you to think back for a moment and remember what you have learned from elementary school clear until College. Have any of these classes have ever taught you the value of money and how to save it? Even in business college, the professors there teach their students how to be penny counters instead of penny savers. Don't get me wrong, getting an education is very important, but the school system teaches kids how to be followers (blue-collar workers) instead of inspiring them to save money and start their own business. For my students who are attending this virtual classroom, I want you to think and ponder what I am going to say to you, "If everyone knew what an asset is, there would be no poor people in this country."
Once upon a time, I was once a student, like you, attending Ricks College in Idaho. As I attended classes, I began to wonder, "how in the world am I going to apply all these concepts I am learning?" It wasn't until later, once I got into the workforce, that I realized that I was working for money instead of having money work for me. The wheels started turning in my head as I was trying to think of how in the world was I going to get money working for me. That concept of having money working for me didn't come into fruition until I became a stay at home dad. I came across a website that told me that I can start my own based business. There is a lot to know about starting a home based business such as creating a business and marketing plan, for starters, but there is one term that I want you to become familiar with and that is to become financially literate. I know that anything that has to do with financial stuff, especially accounting, is boring, but if you want to earn a six figure income, then you need to start here today! In this lecture, you will come to know what an asset is and how it can earn you money while avoiding liabilities at the same time.
What is an asset? It is a term that is used in the business world as a way of offering services or starting a business without paying very much money or none at all. In return, your investment will double or even triple in the long run. Here are some examples of an asset:
1. Starting your own business
2. Affiliate Marketing
3. Wood cutting services (put your chainsaw into good use)
4. Cooking business
5. Arts and Crafts business
6. Designing and creating an invention
7. Your own shuttle services
8. Cleaning services
9. Real estate investment
Use that gray matter that is located between your ears to come up with some ideas of you can come up with ideas to bring in that additional income. If you are working at a day job, look around you and see if you can come up with ideas of how you can start your own business. For example, if you are in your office and you see people throwing away entrepreneur magazines, you can start your own library and charge an admission fee for people who want to become entrepreneurs.
What is a Liability? It is a term that is used to describe people losing money every day because it does not generate income.
Here are some examples of a liability:
2. Your home
3. Car (if you are making car payments)
5. Anything that causes you to lose money without seeing anything in return
This is coming from experience, a tough lesson that I have learned from the school of hard knocks, when I started my affiliate program, I got a little impatient and decided to use liabilities as my main weapon. I paid for traffic to come to my website, because I wanted to see the results now. In the end, I spent a lot of money on SEO services and I got nothing in return. Obtaining an asset requires patience, understanding and knowledge. Starting an affiliate marketing business is an asset so as long as you spend little or no money on it. After learning from this valuable experiencing, I have spent more time writing articles and creating backlinks for my website without spending a dime.
This concludes our little lecture. I hope that you have learned a valuable lesson in knowing what an asset is and how you can apply it to your home business.
One of your greatest asset for your affiliate marketing career is to write articles for your website or blog. I have setup this gig where I will write articles for you!
If you are brand new to affiliate marketing and would like some information, updated news on affiliate marketing and tools on how to succeed, click here now!
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