Don’t understand the question? Ok…let me put it more simply…do you have more liabilities in bills than income and assets, or do you have more assets and income than bills and liabilities?
I know…it’s none of my business…but I am asking this question in order to get you to think differently. You see, if you, as a potential online business owner, truly want to be successful, you must first be financially intelligent.
By this I don’t mean that we need to have a savings account, and be a pro at balancing our checking accounts, I mean that we need to have more assets and income than we have bills coming in every month.
An asset is anything that brings in muney for you, while a liability is a monthly expense. An asset would be things like an off-grid setup that is paid for, rental property, or collectibles that are increasing in value over time, or any business that is developed enough to make money…not lose money.
There are other types of assets like, intellectual property, stocks, and bonds, just to name a few.
I currently have five solid assets. One is my cabin that is paid for, and the others are my off-grid set-up, my published autobiography, and the other two are my online businesses.
The reason I am discussing this today is for the simple reason that if we have more monthly bills that we have income, how are we going to have the money to run an online business, and pay to advertise that business?
I started thinking differently when it came to finances, when I started my first online business. In light of wanting to work from my own home, I changed the way I lived.
When I started my first online business, I rented my home, and paid a ton of money in utilities every month.
Now I live on 20 acres of land, that I own, in what you would call a “Tiny” home (365 sq ft,), and I bought and pieced together an off-grid set-up that functions so well, that I haven’t paid an electric bill since 2015. The property that I own comes with a community well, so I haul my water and fill a 625 gallon water tank twice a year.
When my Son died, I gave his cabin to my neighbors, with the agreement that I would no longer have to chip in on the trash bill, and I put in my own septic system for my bathroom.
Why do I tell you this? Because I am showing you by example a way that I figured out how to decrease my liabilities and increase my assets. Now I don’t have an electric, sewer, water, or trash bill, and I can spend that extra money on my assets…buying advertising for my two online businesses.
The only liabilities that I now have are a low land payment of $330 per month, and a truck payment that I will be done with in two months….plus propane for heat, and of course groceries and dog food.
So my challenge to you is to figure out the “how” you are going to create your dream of having a successful online business, by increasing your assets, and decreasing your liabilities.
If I can do this, with zero money in a savings account, I know that you can to, and I encourage you in this way!
Until next time…