🏦Assets put money in your pocket, while liabilities take money out.
💰To determine whether something is an asset or liability, look at your bank statement. Assets pay you, liabilities cost you.
🚗Cars are liabilities because they take money out of your pocket.
🏠Rental properties can be assets or liabilities depending on cash flow.
🏢Passive income comes from sources like rents, royalties, dividends, interest, or short-term capital gains.
What is the 7030 rule?
—The 7030 rule requires you to live off 70% of your income, give 10%, pay down personal debt 10%, and invest 10%.
How can I determine if something is an asset or a liability?
—Check your bank statement. If it's putting money in your account, it's an asset. If it's taking money out, it's a liability.
What are some examples of assets?
—Some examples of assets include rental properties, stocks that pay dividends, and other sources of passive income.
Why is it important to pay down personal debt?
—Paying down personal debt reduces your financial obligations and allows you to have more disposable income to invest or save.
What is passive income?
—Passive income comes from sources that generate money with little to no effort from the individual, such as rental income or dividends.
00:00The video discusses three steps to building a passive income empire.
01:00Assets put money in your pocket, while liabilities take money out.
04:00Determining if something is an asset or a liability based on your bank statement.
05:00Examples of assets and liabilities, including cars and rental properties.
09:00Introduction to the 7030 rule: live off 70%, give 10%, pay down personal debt 10%, and invest 10%.
12:00Importance of paying down personal debt to improve financial situation.
13:00Focus on investing in assets that generate passive income, such as stocks that pay dividends.
16:00Explanation of passive income and its benefits.
