We probably all know what a depreciating asset is: an asset that declines in monetary value over time due to a number of reasons such as use, wear, or obsolescence.
Examples of depreciating assets are all around us.
Cars, phones, technology, and more.
In the book, 'Rich Dad Poor Dad,' Robert Kiyosaki makes a statement that your house is not an asset.
He claims that since it takes money out of your pocket, it is a liability.
An asset is something that puts money in your pocket on a monthly basis.
It is very hard to argue that these goods can be called an asset.
They can all be regarded as luxury goods - having a phone, a car or pieces of tech are all luxuries, not necessarily physiological needs as stated by Maslow's hierarchy of needs.
I would also argue that for something to be a liability, it does not have to cost only your money.
Something that leaches on your time or energy can also be a liability.
Things such as watching Netflix, spending time on TikTok or other social media platforms are all examples of liabilities too.
However, for a lot of people around the world, these things tend to make money.
For example, some people make money from buying new phones, new cars, or new technology.
We're going to go through some of these examples below and show you how you can replicate the same thing.
Manny Khoshbin / Stradman
Ninja and the gaming world
Till next time,