Buy and Build Assets, Not Liabilities
You want more stuff that pays you and less that you have to pay for
Lets use some simple definitions:
- Asset — something that either is money or pays you money
- Liability — something that costs you money
Your car is a liability. It costs money to buy (or lease), its costs money to insure, it costs money to maintain, it costs money to operate, it costs money to register and license, and for a lot of people, it even costs money to clean.
Cars also cost you money indirectly. Your medical bills are going to be high when you’re older no matter what, but they will be much higher if you choose to spend your most vibrant years being whisked about by a comically heavy motorized wheelchair.
Most people spend their time and money acquiring liabilities
To a certain extent, this is unavoidable. Food is a liability and I’m not at all saying you should eliminate your food spending.
Cars can certainly be useful and convenient even if they aren’t strictly necessary like food.
The answer is not to stop spending time and money acquiring liabilities altogether, the solution is to shift to spending less time and…
