Assets and Liabilities

work the mirror

Chris Gardner had a rough life to say the least. There was a point in time where he and his son were sleeping in subway bathrooms. He didn’t make enough money at the time to provide for his family, but he was determined nonetheless. Eventually, with hard work and a bit of luck he surpassed his obstacles. I could go on to tell you how incredibly successful he became, but watching the film based on his story might be better (warning: it’s a tear jerker). The bottom line regarding this is the importance of monetary gains. Some people feel that money can’t buy happiness, and to an extent they are right. However, at the same time, money can put a down payment on anything you need and unlike people money does not judge you (and neither do we). How you earn your income is all up to you. Throughout our lives my associates and I have done all sorts of work to generate a source of income. Those who try to humiliate the hustle do not understand what it is to hustle. This never deterred us nor were we embarrassed by what we did for employment, but not everyone is like us. If you feel ashamed by your source of income or feel you will be judged prematurely from it, glorify your job. If you pick up trash, say you work for the department of power and water. If you’re a stripper, say you are a professional dancer. If you sell illegal drugs, you are a salesmen for a pharmaceutical company. Be vague when describing the details of your job, it’s your money, not theirs. At the end of the day it’s all about assets and liabilities.

Assets, in a simpler light, are your possessions that hold some value to you. From cash in your pocket, to land that is in your name, it has some worth to you. Since childhood we understood the value of a dollar. When we wanted something from some establishment our parents would have to pay for it (or we’d train our fingers on speed and concealment). To continue to emphasize how important money is, generally people would buy clothes they dislike, travel to places they detest, and perform tasks that are equivalent to watching a rabbit eat for income. We propose to, first of all, gain employment in a career field in which you know you will excel. If you’re good at something, you should never do it for free. Doing a task with minimum effort, while exceeding expectations of the task at hand, will make you more effective and efficient. A second alternative is to do something you genuinely care about. Usually when the ambition is fueled by a cause you truly believe in, the money will quickly follow. Unfortunately, you can’t take the good without the bad; so when the cash does arrive expect liabilities.

Death and taxes are here to stay, no one can change this. For some reason some people actually hate taxes more than death, but we hope they have them. Liabilities are pretty much anything that will one way or another going to cost you. The sooner you understand what your liabilities are, the sooner you can prioritize them. It is imperative that you start out with what is most important to your well being: shelter, food, clothing, transportation and a source of information are all vital liabilities that you must attend to. For those who have children, you might as well double each bill accordingly. Anything after this should be considered a luxury (it varies for everyone). These kind of expenses do not last long but at the office we understand that the more luxuries you have the longer they will last (we will explain later on). Understand one thing, while going through this life, there is no formula for it. So with that said, here is one simple equation to remember: Assets over Liabilities.

This is your scale of currency: the assets you posses over the liabilities attached to your name.  The moment credit cards come into play you’re messing with unforeseen liabilities. Avoid paying anything with foolish plastic, in this world cash is still king. If someone tells you that you can’t buy a house unless you have some form of credit, show up with cash on hand and that argument becomes mute. For those who have more liabilities than assets we will present you with three options. The first is removing the bills you currently have. This is the longest and sometimes the most difficult to complete depending on the ratio. One way or another, they have to be removed and never repeated. This also goes along with your spending habits. If clothes are something you have to purchase, buy something you will get the most use out of, not something you will wear only one night. How you take care of it is up to you but do not ignore them. The second option is to increase your assets. You’re good at what you do; make sure those above you realize this. Staying at an establishment long enough while being a top worker means nothing if it isn’t witnessed. Ask for a raise in a subtle manner depending on the relationship with those above you. If that’s not an option, start looking elsewhere. Once they catch wind that you’re looking for new employment, then you might be able to shake something out of them. If this still doesn’t work, leave. If they won’t value you, someone else will. Your third option is to do nothing and let the ones more efficient than you leave you behind.

People are always looking for ways to get rich quick. With the exception of the lottery, this does not exist. What does exist is how simple it really is to accomplish this. Obtain as many assets as possible while eliminating liabilities that threaten your effectiveness. How you do it, is up to you. We don’t know your situation, but if we do we can guide you in the right direction. Practice this lifestyle of spending in your daily routine and you will see saving money will come naturally. Whatever luxury you desire will be yours as long as you have the scales tipped in your favor. Also life has a weird way of making itself known in the universe with emergencies but let it be known you want to be that person to count on when you get a phone call, not the one that says "uhh I don’t have it". This last bit of advice comes from the person who named our company (Thank you Juan): If someone else didn’t put money in your pocket, he shouldn’t know how much is in your pocket. You worked for your money, only you and the government should know how much you have.

Please stay tuned and sign up with your email to get updates on our blog. Feel free to post questions or any remarks you feel that need our attention in the comment box and we will respond accordingly. And please feel free to spread the word, you may not need this guidance but you may know someone who does. Each one teach one.

Stay Classy World,

Johnny Cavarichii and Associates

Investment Tip #3: Never lie to people you pay to save your life