I read a statistic lately – and I have no idea if it’s actually true, but I found it intriguing – that only 5% of people achieve financial independence in their entire lifetime. The rest of us languish in debt and financial obligations that seem to get more complex over time. (After all, many scientists promote the theory that life moves toward complexity.)
Sounds bleak, doesn’t it? It doesn’t have to be that way!
Here’s food for thought:
One big key to realizing financial independence is to start to differentiate between ASSETS and LIABILITIES.
Asset: Appreciates in value (like a house, if you hang onto it long enough)
Liability: Loses value (like a car)
Not that you can necessarily live without a car (although giving your car to charity is always an option!) but when given a choice, putting your money toward assets versus liabilities is a step in the right direction.
And just knowing the difference between an asset and a liability is also a step.