What is an asset?What is a liability?An asset is something that constantly brings you cash flow;Debt is something that keeps cash flow out of your pocket.
For example, bonds are assets because there is a steady interest income;The ** with high dividends is also an asset because there are stable dividends.
*Strictly speaking, it is not considered an asset, because ** itself does not generate cash flow, and the big ** "born" cannot produce a small **, and buying and selling ** is just making the difference.
The car is not an asset but a liability, because it is depreciating rapidly from the moment it opens a 4S shop, and you have to constantly pay for maintenance, fuel, parking, insurance, etc., so that your cash is constantly flowing out of your pocket.
For real estate, at present, many houses are also in debt, because the rent of the house is generally less than 2% of the house price, and the loan interest rate is 5%, and the monthly payment is higher than the rent, not only can you not get income, but also have to subsidize your tenants, and at the same time bear the risk of house price fluctuations.
In summary, the wealthy see the direction of cash flow behind their assets, and constantly collect assets to generate income for themselvesThe poor, on the other hand, are unable to discern the direction of their cash flow and are constantly turning their hard-earned money into various liabilities.