Tag: income
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About Assets and Liabilities
The reason folks acquire liabilities thinking they are assets arises from financial illiteracy. Conventionally, an asset is something you own that has value. This shows up on the asset column of your balance sheet. For the financially literate, what makes an item an asset or liability depends on the cash flow pattern. In corporate mergers…
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Between Financial Freedom and Independence
The two words – financial freedom and financial independence seem to mean one and the same thing in the minds of many. This has led to a lot of confusion and mix-up when it comes to building a sound financial foundation to be able to withstand financial storms which are a fact of life. Financial…
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Multiple Streams of Income
Most workers don’t have multiple streams of income. The salary is the only source of income. Their life revolves around their job. If the salary gets delayed for whatever reason by a few days, their finances are in crisis mode, and at the risk of a financial meltdown. They live pay cheque to pay cheque.…