Essential Economics for Politicians

messy said:
Richdad.com. LOL.
Btw I am one, but I don’t get my financial info from that website.
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The house you live in is not an asset.

The common understanding of an asset is something that we own. Even from an accounting perspective a house owned by a business entity would be reported on the asset side of the balance sheet.

Many people believe that the home they live in should be considered an asset. Let me offer a different perspective — that your home is a liability. This is a concept that was popularized by Robert Kiyosaki the author of ‘Rich Dad, Poor Dad’. The focus of this concept is on cashflow.

If we view things from a cashflow perspective, a few things change:

Anything that increases our cash balance would be considered an ASSET.

Anything that decreases our cash balance would be considered a LIABILITY.

In this alternate way of looking at things, an asset is something that puts money in our pocket and a liability is something that takes money out of our pockets.

Even after purchasing your house you keep paying EMIs, so in that sense its a liability. Even if we are assuming that you have paid off the loan amount, you will still have to incur expenses such as tax levies, insurance and maintenance costs.

But the value of the house is increasing - what about that?

Yes, generally the housing prices are on the rise, but that is not always the case. More importantly, you will receive the benefits of that increase only when you sell the property

So does that mean real estate is a bad investment?

Not necessarily.

If you rent out the property, and your rental income covers your expenses — Congratulations! Your house is now an asset!
https://www.quora.com/Is-owning-a-home-an-asset-or-a-liability
 
Is Your House An Asset Or A Liability?
Over the last few years, many Americans found out that owning a big house was more like living the American nightmare, not the American dream. What got most people into trouble was they failed to realize that, on balance, a house is a liability, not an asset.

Now you might be thinking I'm exaggerating to make a point. But I'm not. On balance, a house is something you constantly pump money into, and for the most part, won't get out of it what you've invested in it. That sounds like a liability to me, not an asset. So before you buy your next house, you should ask yourself "what's it going to cost me," as opposed to "how much can I make off of it." That will help you keep your housing costs in line with your income.
https://www.cbsnews.com/news/is-your-house-an-asset-or-a-liability/
 
Lion Eyes said:
The house you live in is not an asset.

The common understanding of an asset is something that we own. Even from an accounting perspective a house owned by a business entity would be reported on the asset side of the balance sheet.

Many people believe that the home they live in should be considered an asset. Let me offer a different perspective — that your home is a liability. This is a concept that was popularized by Robert Kiyosaki the author of ‘Rich Dad, Poor Dad’. The focus of this concept is on cashflow.

If we view things from a cashflow perspective, a few things change:

Anything that increases our cash balance would be considered an ASSET.

Anything that decreases our cash balance would be considered a LIABILITY.

In this alternate way of looking at things, an asset is something that puts money in our pocket and a liability is something that takes money out of our pockets.

Even after purchasing your house you keep paying EMIs, so in that sense its a liability. Even if we are assuming that you have paid off the loan amount, you will still have to incur expenses such as tax levies, insurance and maintenance costs.

But the value of the house is increasing - what about that?

Yes, generally the housing prices are on the rise, but that is not always the case. More importantly, you will receive the benefits of that increase only when you sell the property

So does that mean real estate is a bad investment?

Not necessarily.

If you rent out the property, and your rental income covers your expenses — Congratulations! Your house is now an asset!
https://www.quora.com/Is-owning-a-home-an-asset-or-a-liability
Click to expand...

If you pay off the mortgage, or inherit a house with no mortgage, is it an asset in your world?
 
Why Your House Is Not An Asset
From a cash flow perspective, it’s actually a liability.

The cruel truth for most people is that their home is in fact not an asset but rather a liability. The point of this article is not to discourage you from buying a home, but rather to make you aware that you could make a serious financial error if you are purchasing your home with the idea that it is an investment.

https://www.entrepreneurmag.co.za/a...sonal-finance/why-your-house-is-not-an-asset/
 
Booter said:
5 Things You Must Tell Your Grandma About the Ads on FOX News So She Doesn’t Get Scammed

1. DO NOT MAKE THE CASH CALL. EVER! IN FACT, DON’T CALL ANYONE. OR PICK UP THE PHONE. DEVIOUS PEOPLE WANT YOUR MONEY. AND THAT’S THE JOB OF YOUR GRANDKIDS.

2. THE SALVATION ARMY DOESN’T WANT THAT LOVELY CLAY AIKEN TO BE HAPPY. AND, THEY HATE NEIL PATRICK HARRIS, THAT NICE BOY FROM THAT FUNNY SHOW GRANDMA LIKES.

3. FRED THOMPSON SECRETLY HATES YOU. AND THAT RASCAL SCOOTER YOUR RODE IN ON.

4. YOU DON’T NEED A SPECIAL $10 DOLLAR BAG TO MAKE BAKED POTATOES



5. DON’T TRADE YOUR “WORTHLESS” ACTUAL MONEY FOR “VALUABLE” GOLD



https://www.huffingtonpost.com/jon-hotchkiss/5-things-you-must-tell-yo_b_4176284.html
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Not " our " problem if Liberals Grand Mothers have been misguided into watching
CNN, MSNBC and other MSM outlets posing as FOX News and let scammers take advantage of them....
Conservative Grand Mothers will educate Yours for a nominal fee with a Guarantee.

Poor poor tormented Booty.....
 
Lion Eyes said:
The house you live in is not an asset.

The common understanding of an asset is something that we own. Even from an accounting perspective a house owned by a business entity would be reported on the asset side of the balance sheet.

Many people believe that the home they live in should be considered an asset. Let me offer a different perspective — that your home is a liability. This is a concept that was popularized by Robert Kiyosaki the author of ‘Rich Dad, Poor Dad’. The focus of this concept is on cashflow.

If we view things from a cashflow perspective, a few things change:

Anything that increases our cash balance would be considered an ASSET.

Anything that decreases our cash balance would be considered a LIABILITY.

In this alternate way of looking at things, an asset is something that puts money in our pocket and a liability is something that takes money out of our pockets.

Even after purchasing your house you keep paying EMIs, so in that sense its a liability. Even if we are assuming that you have paid off the loan amount, you will still have to incur expenses such as tax levies, insurance and maintenance costs.

But the value of the house is increasing - what about that?

Yes, generally the housing prices are on the rise, but that is not always the case. More importantly, you will receive the benefits of that increase only when you sell the property

So does that mean real estate is a bad investment?

Not necessarily.

If you rent out the property, and your rental income covers your expenses — Congratulations! Your house is now an asset!
https://www.quora.com/Is-owning-a-home-an-asset-or-a-liability
Click to expand...


All the above fantastic Knowledge you just imparted on " Messy " will go in one ear and
drain out his puka.......
 
Hey, izzy and like-minded idiots.-- Here is some help for you --

https://www.moneymanagement.org/cre...al-balance-sheet-and-determine-your-net-worth

...start developing your balance sheet by listing all of your assets (financial and tangible assets) with the values.
  • Cash (in the bank, money market accounts, or CDs)
  • All investments (mutual funds, college savings accounts, individual securities)
  • Home value (the resale value of your home)
  • Automobile value (the resale value of your car)
  • Personal Property Value (resale value of jewelry, household items, etc)
  • Other assets
The sum of all of those values is the total value of your assets. Your goal should be to continually increase your assets.

Next, you can look at your liabilities, which should be everything you owe. Here are some common liability categories:
  • Remaining mortgage balance
  • Car loans
  • Student loans
  • Any other personal loans
  • Credit card balances
The sum of all of the money you owe is your liabilities. As you start to pay down your debt, your total liabilities will decrease.
 
espola said:
Hey, izzy and like-minded idiots.-- Here is some help for you --

https://www.moneymanagement.org/cre...al-balance-sheet-and-determine-your-net-worth

...start developing your balance sheet by listing all of your assets (financial and tangible assets) with the values.
  • Cash (in the bank, money market accounts, or CDs)
  • All investments (mutual funds, college savings accounts, individual securities)
  • Home value (the resale value of your home)
  • Automobile value (the resale value of your car)
  • Personal Property Value (resale value of jewelry, household items, etc)
  • Other assets
The sum of all of those values is the total value of your assets. Your goal should be to continually increase your assets.

Next, you can look at your liabilities, which should be everything you owe. Here are some common liability categories:
  • Remaining mortgage balance
  • Car loans
  • Student loans
  • Any other personal loans
  • Credit card balances
The sum of all of the money you owe is your liabilities. As you start to pay down your debt, your total liabilities will decrease.
Click to expand...

Nah, that’s wrong. Go to richdad.com to learn the real shit.
Not counting on Iz or Lion to set the world on fire, financially speaking! LOL.
 
espola said:
Hey, izzy and like-minded idiots.-- Here is some help for you --

https://www.moneymanagement.org/cre...al-balance-sheet-and-determine-your-net-worth

...start developing your balance sheet by listing all of your assets (financial and tangible assets) with the values.
  • Cash (in the bank, money market accounts, or CDs)
  • All investments (mutual funds, college savings accounts, individual securities)
  • Home value (the resale value of your home)
  • Automobile value (the resale value of your car)
  • Personal Property Value (resale value of jewelry, household items, etc)
  • Other assets
The sum of all of those values is the total value of your assets. Your goal should be to continually increase your assets.

Next, you can look at your liabilities, which should be everything you owe. Here are some common liability categories:
  • Remaining mortgage balance
  • Car loans
  • Student loans
  • Any other personal loans
  • Credit card balances
The sum of all of the money you owe is your liabilities. As you start to pay down your debt, your total liabilities will decrease.
Click to expand...

Not only that, if you declare to the IRS or a bankruptcy court that the house you own is not an asset, you will be subject to felony fraud indictment and prosecution.
 
espola said:
Not only that, if you declare to the IRS or a bankruptcy court that the house you own is not an asset, you will be subject to felony fraud indictment and prosecution.
Click to expand...
messy said:
Nah, that’s wrong. Go to richdad.com to learn the real shit.
Not counting on Iz or Lion to set the world on fire, financially speaking! LOL.
Click to expand...
Maybe these idiots are underwater on their homes . . . and a few other loans.
 
espola said:
Hey, izzy and like-minded idiots.-- Here is some help for you --

https://www.moneymanagement.org/cre...al-balance-sheet-and-determine-your-net-worth

...start developing your balance sheet by listing all of your assets (financial and tangible assets) with the values.
  • Cash (in the bank, money market accounts, or CDs)
  • All investments (mutual funds, college savings accounts, individual securities)
  • Home value (the resale value of your home)
  • Automobile value (the resale value of your car)
  • Personal Property Value (resale value of jewelry, household items, etc)
  • Other assets
The sum of all of those values is the total value of your assets. Your goal should be to continually increase your assets.

Next, you can look at your liabilities, which should be everything you owe. Here are some common liability categories:
  • Remaining mortgage balance
  • Car loans
  • Student loans
  • Any other personal loans
  • Credit card balances
The sum of all of the money you owe is your liabilities. As you start to pay down your debt, your total liabilities will decrease.
Click to expand...

There's your Net worth argument again! Lol!!
 
messy said:
Nah, that’s wrong. Go to richdad.com to learn the real shit.
Not counting on Iz or Lion to set the world on fire, financially speaking! LOL.
Click to expand...

Financial speak below:

Net Income from the home you live in/Total Avg. Assets = Return on Assets

In your case. The home that you live in.

So far, you've never disclosed your purchase price, the interest rate, and now the net income you receive from the house that you live in. Even though I've asked several times. Why is that? Are the equations to revealing for you people?
 
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