Immediately what happens is after graduating from college with those good grades that you studied so hard for, you go out and find the good job, land the benefits and start your life. You decide renting is not smart so you purchase a home which is a liability, purchase the nice car which is a liability, get the credit cards which become a liability and the next thing you know you are well on your way to joining the rat race. You become part of the rat race when your liabilities far out way your assets and your income and you simply are working to pay off your liabilities while acquiring assets is put on hold because your liabilities are using up all of your income.
You see the one major thing that is often not included in your well intentioned parents advice is that acquiring true assets is the first step in building wealth that can be passed on from generation to generation. Chances are your parents are not leaving you any substantial wealth because they to were caught up in the rat race. They do not have any real money to leave because their money went to paying for their liabilities. They were just passing on the advice that their parents had given them. And so the story continues. What you want to do is be the one who broke this chain in your family history. Be the one who started the legacy of assets being passed down from generation to generation. Your only chance to create wealth is to acquire assets but there is no income left to do that. So how do you change this?
It is the American way to have the big house and the nice cars first. Do you have to follow the crowd? Guess what? The United States economy has come to a screeching halt all because the American public has run out of money to buy assets and they have too many liabilities. That is why there are so many foreclosures on the market. People did not put assets first before the big expensive home and now they can not afford to pay for the home because they have lost there jobs or have had to take a pay cut due to the state of the economy, which makes it impossible for them to keep up with their liabilities. Assets produce income so when the job was failing the assets might have been the saving grace. Instead, they are caught up in the Rat Race.
Once you get in it is very hard to get out. Getting out of the rat race can be tricky. But it can be done. First you must eliminate your liabilities or at the very least reduce them. You are attempting to free up some of your income to use towards assets. Look for ways to reduce your monthly expenses. If you haven not already bought a home, wait and acquire a few assets first. The idea is to create a lifestyle that does not take all of your income. You want to have something left over every month to invest so that your money can go to work for you. If you keep spending all of it every month it will never work for you unless you are spending it on income producing assets. Assets make you money while you are sleeping, playing or working. They grow in value or they produce income. Liabilities either take money to purchase and immediately loose their value or they require a monthly payment. They suck the life out of your income. Assets help to build a legacy. Liabilities can put you in the poor house.
Getting out of the rat race means getting out from under liabilities, live below your means, acquire assets with what is left and grow your money. If you take my advice you will reduce the stress in your life, you will sleep better at night and you will experience an inner peace that you may not have ever experienced before.
About the Author:
Suzanne Manziek is the owner and founder of winatbiz.com an internet based marketing business designed to assist clients in debt reduction and wealth building. Her business system does not include any cold calling, chasing leads or investing in and stocking inventory. She has written many articles on the subject of internet marketing, online business, debt reduction and building wealth for life. She can be contacted at smanziek@gmail.com or visit her website at http://www.winatbiz.com