tinkerbel,

1) That is YOUR OPINION and YOUR WAY of looking at things. And, you are what you believe. IMHO, anything that does not generate positive cash flow is NOT an asset.

2) In your system of belief, when you buy something and you own it aka even a TV, you think you have an asset and your net worth is increasing. In my system of belief, anything that does not make money for me is not an asset. So, between you and me, who is going to spend more money on things that does not make money?? You or me?? You are what you believe.


Dreamer

tinkerbell is actually correct in defining assets. Assets are what we owned, no matter it depreciate or appreciate.

she is right , asset may or may not generate $$/ appreciate

u r right.

something tht u own tht generate $$ / appreciate , when it depreciate or require ur $$ to maintain it, it become liability. put it this way, when u bring business to ur employer, u r an good asset ,but when u r not efficient anymore n company still pay u ur salary , u r liability...

car used as taxi = asset , car tht keep as weekend car n paying instalment = liability , 50yrs old car tht Tunku Abdul Rahman owned n passed down to my grand father n he pass to me is an invaluable asset , i pay $$ money to maintain n keep it shinny, liability.

yewkhuay,

1) Average people are not rich and rich people are not average. You have a choice. You can choose to be average or rich. You cannot be both.

2) Rich people do not look at things the same as average people. And, they are NOT limited or use the definition of normal people.

3) My definition of asset is based on cash flow basis. Anything that does not generate positive cash flow is NOT an asset.

4) In my book, appreciation is NOT REAL. It is not cash flow. Until you can sell that thing and get some money, it is ALL PAPER PROFIT.

So, do you want to be RIGHT or RICH. And, that is the question. Normal and average people use definition and way of looking at thing that cause them to waste money as opposed to using money to generate wealth.

I would rather be RICH than RIGHT.

Dreamer

This post has been edited by dreamer101: Nov 29 2007, 10:15 PM

We can always right and rich at the same time. Definition of asset is not important, if u know how to make money.

jasontoh,

You have contradicted yourself.

<<Definition of asset is not important, if u know how to make money.>>

If you believe this, then, being right is irrelevant to you. You only care about making money.

<<We can always right and rich at the same time.>

If you believe in this, then, you do not believe definition of asset is not important.

Which one do you choose?? What is more important to you??

Dreamer

No, for me the correct definition is not important, but at the same time is important because we need to know for education purposes. The more important thing for me is rich. If we get the correct definition and at the same time we are making money, we are both rich and right

This post has been edited by jasontoh: Nov 30 2007, 07:34 AM

totally agree with what you say, i'm few house owner while it was my liability while i still cannot generate the income from it and i need to maintain. gosh, it was heavy to maintain those.

TS : get a landed is more better unless you are investing in condo for short term to resell. if for living, dont get urself into the so called maintenance fees. dont increase your own debts/expenses in today malaysia living expenses. It would increase from time to time.

---

Added on November 30, 2007, 12:51 pmfor me, how we consider is rich ? 1 million is alot? yeah it was for some people, but not for some.

why asset is important?

comparing asset and money, good asset will help to bringing income someday, while money, i earn 20K per month while my expenses is 20K. where those 20K going? 15K i buying BMW ?

can the BMW help me generate incomes?

so the definition of asset issit important? i would say yes.

anyway, it was not important for who rights or something, if you can make money and you have asset, then you are right. who cares if you can make revenue like what uncle bills make, and you do not have any assets?

This post has been edited by cypher: Nov 30 2007, 12:55 PM

both tinkerbel and dreamer are correct at their respective POV...

by accounting definition, Assets are everything that you own, be it a property rented to public, a car, even desk and tables...

but in the real world, assets are subjective... depends on how that item is used...
a property you are living in is a liability as you have to pay to maintain
a property rented out but unable to fully service your bank installment is also a liability...
a car, if used and able to give you cash flow exceeding your maintenance is also an asset... but if you sell it off, it's a liability due to its depreciating value...

there's no right or wrong, just different opinions...

This post has been edited by kenji1903: Nov 30 2007, 05:05 PM

Dreamer,

read my post carefully , i was commenting tinkerbel is right at her point of view, i didn't agree with anyone on which is asset n which is liability, It can be both at the same time if one doesn't handle it properly. asset provide $$ , liability doesn't , regardless wat it is, can be the same thing.

not sure wat r u trying to tell me in 1) n 2) if u r replying to my post. i m not rich in my definition , neither average at most of my peer's definition. right or wrong to me it doesn't matter, it's all POV, but from the way i see it, u r the one who is always mentioning others are wrong.

yewkhuay,

<<read my post carefully , i was commenting tinkerbel is right at her point of view, >>

You do not get IT. My POV is that kind of POV will not help a person to get rich. And, it is HARMFUL in the path of gathering wealth. A person's POV shape what a person believe. And, that determines whether a person is average or
rich.

You are what you believe.

Dreamer

read my post at #23, tell me how i m wrong in defining asset n liability. tell me how harmful can it be to know how a thing can be both asset n liability if managed the right or the wrong way respectively.

a person who doesn't know to differentiate which POV is helpful for him doesn't deserve to be rich at all , in other words, anyone can voice their POV but it's up to the person to pick which to accept.

Asset is something generating cash inflow and liability is something that you have to pay for. This is the definition in accounting.

Asset such as cars, land, building, machine is cash generating equipment for a company. But for individual, it's different but not such differences.
A Land/Building is generating cash flow if it's use for plantation or business purpose or rental.

Liability is something for you to get your asset. A company finance their operation by both equity and debts. debts here refers to liability. At the end of the days, your Asset = Equity and Liability.

It'd be great if someone can have its assets from solely equity (which is their earnings/salary from individual perspective)

Sure Sure. And I'm rich, therefore ......

Definition of Asset:-

Wikipedia Asset Definition

but yet you think its the right POV to gain weallth? Care to explain more?

Pai,

1) Only cash flow positive investment are assets. Anything else are liabilities.

2) House that you lived in is liability unless you rent part of your house out and it is cash flow positive./

In USA as for many in Malaysia too, people think that the house that they live in is an asset. Because of that flawed thinking, they spent TOO MUCH on the house that they live in and tied up most ofl their money. So, the house is the only "ASSET" that they have. They are house rich and have nothing else.

Dreamer

This post has been edited by dreamer101: Dec 5 2007, 10:17 AM

If you are not looking for a big family, a condo would be a better place. It has security, facilities etc. House has much higher expense compared to a condo. Wait til you got a bigger capital then only buy a house la

Not exactly correct. Monthly management fees paid for condo and monthly rental of parking if only 1 parking lot are considered "fixed" expenses already. Sometimes changing of guards would cost moneys too.

@dreamer

can u pls take ur comments about asset vs liability somewhere else? or do it privately ?

People like me wanna concentrate on reading about other ppl's plans to spend 200 - 250k ... not really interested in how you define asset and liability.. thanks