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Today we are going to ask the question is a home an asset?
An asset is something that puts money in your pocket whether you work or not. Does your home do that? My guess is it does not, unless you are renting it out.
So is a home an asset?
One of the most common mistakes people make is thinking that they’re home or their car is an asset. I give them credit for taking the first step of creating a budget and a list of assets and liabilities. But the real problem comes in when they don’t understand the deference between an asset and liability.
You should NOT be listing things such as your home or your car under the asset column. Remember that an asset is something that puts money in your pocket whether you work or not. Things you will want to have in your asset column will be things like- dividend paying stocks, CD, a business that cash flows, a rental income, royalty from book or audio program, blog income, etc.
Items that will show up in your liability column will be things such as- your cellphone bill, your electric bill, your home, your car, taxes and other monthly expenses that you have. These things take money from your pocket month to month whether you work or not which is why they are listed here.
Agree? Disagree? with is a home an asset? Please tells us about it in the comments! Thank you for reading and subscribing!