Topic: Asset and liability, one key factor for poverty among most Africans (Read 229 times)

You are correct there but I think what he is saying is also correct and mostly applies to the poor society now. Poor often tends to prioritize things which aren't really that important like mobile phones and they wouldn't mind it even if there is less food on their plate or if they can not eat thrice or twice a day due to much budgeting because they are saving for the money on their dream gadgets.

This is why their situation won't improve because of this poor mentality. When we already have a phone or something that is still functional, it is not necessary to purchase another one or the latest model but instead let us prioritize things which are more important or use the money instead for assets/investment.

Am still trying  to come to terms as to understand  how "someone that can hardly feed  himself twice daily" is capable of buying expensive phones and luxury cars like the OP emphasized above.
Isn't that statement contradictory? Cause for example, if a person can afford an expensive phone like an iPhone 13pro for example or any expensive car like a Lamborghini then definitely such a person can not just only be capable of feeding himself but his family and friends!

So am not sure I understand the point your trying to make except that you deviated from what I could suggestion as the intent of the thread which is " it's better to acquire more assets than liabilities", and not the other way round as you just unsuccessfully tried to confuse me.

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And most of all better to know reality than illusion.  I wonder how can an average earner person survive if 70% to 80% of his income goes to assets.  People have to pay rentals, monthly bills, and personal maintenance, food, transportation etc..  For a normal employee or a minimum wage earner, it is lucky to have an excess of 20% of their monthly salary. In my place in order for me to safely invest my 70% income, I need to earn at least $5k per month which is impossible because the minimum wage in my country is only $10.15 per day taxes and miscellaneous charges haven't been deducted from that.   It is ideal to save and invest but the percentage OP is suggesting is way overkill!  

👉👉Let 70%- 80% of your income goes to asset. It is better to invest ones money on asset than getting liabilities that will bring no income.

👉👉Only acquire liability if the liability will add value to you, your business or improve the income made in your business.

👉👉Only acquire liability after gotten a good investment that is capable of providing enough returns for your home and the liability purchased maintenances.

I would say the #1 difference between the rich and poor is.

The rich read books and learn as a lifestyle.

While the poor believe no good can come from either reading and learning.

Its the mentality, lifestyle and attitude that is responsible for producing results.

Although it definitely is becoming harder to reach wealth from a starting point of poverty.

The goal isn't necessarily wealth. But rather learning things that are worth knowing. Which produce an abundance of wealth, inevitably.

This is very true. Not all people can afford to allot even 20% of their earnings to assets especially if you are just a minimum wage earner. Even if you say you are frugal with your life, still there are basic needs that you need to pay. You would be more than happy to even spare 5% of your earnings to your savings if your wage is just an average one. Most are just living from paycheck to paycheck, so you are lucky one, if you can spare some for your savings.

And most of all better to know reality than illusion.  I wonder how can an average earner person survive if 70% to 80% of his income goes to assets.  People have to pay rentals, monthly bills, and personal maintenance, food, transportation etc..  For a normal employee or a minimum wage earner, it is lucky to have an excess of 20% of their monthly salary. In my place in order for me to safely invest my 70% income, I need to earn at least $5k per month which is impossible because the minimum wage in my country is only $10.15 per day taxes and miscellaneous charges haven't been deducted from that.   It is ideal to save and invest but the percentage OP is suggesting is way overkill!  

First of all its is not really possible to expect someone to invest their 70% of their income, even if they invested 20 to 30% then they will attain financial freedom sooner and probably can live the life sfter retirement peacefully. So I just wanted to keep the amount to somewhat realistic which is 25%.

Better realize the difference between needs and wants so they can spend money economically.

Conclusion
👉👉Let 70%- 80% of your income goes to asset. It is better to invest ones money on asset than getting liabilities that will bring no income.

👉👉Only acquire liability if the liability will add value to you, your business or improve the income made in your business.

👉👉Only acquire liability after gotten a good investment that is capable of providing enough returns for your home and the liability purchased maintenances.

Most Africans especially Nigerians prefer liability to asset. In the journey of becoming a successful being, it is advisable to acquire more assets than liabilities. The questions here is where does 70%- 80% of your income goes? Asset or liability?

I completely disagree with this brazen claim of yours, what statistics or proof do you have to back it up that Africans (Nigerians more specifically like you said) are more concerned about acquiring things that are liabilities to them, than stacking up assets; i can categorically state that it is wholly untrue. You can prolly call it a human trait, but to pinpoint a particular people as doing it more without stats is uncalled-for.

Having said that, you quite forget that in most parts of Africa people live below the poverty level, some even earn less than $2 a day, quite a lot of them are basically concerned about what to eat, wear, good water, etc, that they can't even condition their minds to dream of acquiring luxurious items, only the wealthy/rich can afford it there.

What is asset? What is liability? Assets are the items you owns that can provide future economic benefit while liabilities are things we own with future obligations. In a simple definition, assets are things we buy that will bring money back to us while liabilities are things we buy that we will keep spending money on. Assets put money in your pocket while liabilities take money out of your pocket.

Most Africans especially Nigerians prefer liability to asset. In the journey of becoming a successful being, it is advisable to acquire more assets than liabilities. The questions here is where does 70%- 80% of your income goes? Asset or liability?

Imagine someone that can hardly feed himself twice daily buying an expensive phones and cars without a specific purpose (just for fashion). This is the different between the rich and the poor. The rich invest in what can fetch them more money (asset) e.g buying land, investing in reputable businesses but the poor out of fashion keep buying liabilities (goods that they keep on spending their little earnings on for maintenance). If 70%- 80% of your income goes to liability then one is preparing for a poor life.

I'm not saying buying expensive phones and cars isn't good but shouldn't be priority over ones investment. Phones and cars maintenance in some countries are expensive. So this may prevent one from saving if one acquire it without a good job.

Conclusion
👉👉Let 70%- 80% of your income goes to asset. It is better to invest ones money on asset than getting liabilities that will bring no income.

👉👉Only acquire liability if the liability will add value to you, your business or improve the income made in your business.

👉👉Only acquire liability after gotten a good investment that is capable of providing enough returns for your home and the liability purchased maintenances.

Is this the result of research? Or is it just your personal opinion because you see people around you doing that?

Having said that, you quite forget that in most parts of Africa people live below the poverty level, some even earn less than $2 a day, quite a lot of them are basically concerned about what to eat, wear, good water, etc, that they can't even condition their minds to dream of acquiring luxurious items, only the wealthy/rich can afford it there. It is in parts of the world where life is much better, first world countries were people earn a reasonable minimum wage that you could talk about even the middle class citizens leading a somewhat comfortable life.

Most Africans especially Nigerians prefer liability to asset. In the journey of becoming a successful being, it is advisable to acquire more assets than liabilities. The questions here is where does 70%- 80% of your income goes? Asset or liability?

This is the different between the rich and the poor. The rich invest in what can fetch them more money (asset) e.g buying land, investing in reputable businesses but the poor out of fashion keep buying liabilities (goods that they keep on spending their little earnings on for maintenance). If 70%- 80% of your income goes to liability then one is preparing for a poor life.

Imagine someone that can hardly feed himself twice daily buying an expensive phones and cars without a specific purpose (just for fashion). This is the different between the rich and the poor. The rich invest in what can fetch them more money (asset) e.g buying land, investing in reputable businesses but the poor out of fashion keep buying liabilities (goods that they keep on spending their little earnings on for maintenance). If 70%- 80% of your income goes to liability then one is preparing for a poor life.