Financial Intelligence - Do you have it?

Financial Intelligence - Do You Have It?The rich and successful stand out from the rest because oftheir Financial Intelligence education, not theirscholastic education. This is something that we are nottaught in school but rather something that is acquired.To give you an example:Is your home an Asset or a Liability?The general consensus is that it is an Asset. But is it?To answer that question we must first understand thedifference between Asset and a Liability (financialintelligence).Simply put:"An Asset puts money into our pockets.""A Liability takes money out of our pockets."Knowing these two basic rules of financial intelligencelets re-visit the question.Is your home an Asset or a Liability?1. Every month we make a mortgage payment - (Cash flowsout).2. We pay yearly taxes on our property - (Cash flows out).3. We have to pay for repairs - (Cash flows out)4. When the mortgage is paid we still have to pay the othertwo - (Cash flows out)As you can see, if you buy a home, cash will always flowout of your pocket. Thus your home is a Liability.Does this mean that we shouldn't buy a home? No, not atall.The point that is being made is that if we wish to be rich(or wealthy if you are uncomfortable with the word rich)and successful we need to understand how to accuratelydistinguish Assets from Liabilities.Most people spend a lifetime acquiring Liabilities ratherthan Acquiring income generating Assets. The rich orwealthy spend a lifetime acquiring income-generatingassets and purchase liabilities that work for them insteadof against them.An interesting fact and one that seems to be a stumblingblock for most people is that you don't need to be rich toacquire income-generating assets. 80% of today's wealthyhad nothing when they started. The other 20% inheritedtheir fortunes.So, if you desire to be wealthy there are two basic thingsyou have to learn how to do:1. Continually acquire income-generating assets (cash flowsin). It does not matter how small they are when you start.Over time assets will build up.2. Learn to acquire Liabilities that work in your favourand not against you."It's not how much money you make, its how much money youcan keep that counts. There is always hope for those thathelp themselves"MIND YOUR BUSINESS***********************************************************Winston (Kip) Scoville is the owner of MKOPPS SmallBusiness Resources website. A site dedicated to helpingpeople grow successful businesses.http://mkopps.netfirms.com***********************************************************

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