In my previous post, I did mentioned about Money at work or People at Work. This two money making method will change a person into different financial situation. As I also mentioned about McDonald money at Work concept. The products are burgers, but McDonald make the business work harder and smarter by putting more people at work. It is now become the world largest franchise fast food chain stores.
The important things to understand about the money terms.
1. Income : Money you bring in.
If you are an employee, your income is from your monthly salary. You get paid by wages, your employer pays you based on working hours that required in a day. They hire you to put more people at work in order to make more profit from his company. Your salary will stop when you stop working or when you are retired.
2. Expenses : Money you spend.
which you spend in foods, shelters, clothes, transport, etc.
3. Assets : Somethings that pays you.
This is most confusion one as in traditional definition about assets is something you own rather than somethings that pays you!!
4. Liabilities : Things that cost you.
A house is typically view it as Asset for most people. But can it be a liability? Yes ! when a house is something that cost you. To answer your doubt, when a house become an Asset? When the house starts to pay you money.
In my next post, I am going to share with you 'Pay Day'. The things that you buy on pay day. This is interesting as make most poor people become poorer, the rich people become richer and the middle class stress out! Do follow me in Facebook
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