Asset and liability, one key factor for poverty among most Africans

[el kaka22]

70-80% of my income to assets? You must be crazy mate, there is no way that I could live with 20-30% of my income, how could that be? I can't live with 100% of my income to be fair right now, my salary is not enough to cover my debts but that's fine, I am paying it small by small and I am getting rid of it because I am making more money than most people in my nation and I can live easily and banks are happy that I am at least paying it a bit even if it is slow since there are many people who don't even pay their debts these days.

So, I have to say that we shouldn't really be shocked about the fact that people can't invest their money into assets like that, we need that money.

[passwordnow]

👉👉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.

This is easy if you're living well with your life and you don't have obligations being put onto your shoulder. But majority of the folks can't do this, we've got bills and obligations to sustain and that's why this cannot do. It's true that it's good to invest but you also have other priorities and responsibilities to make.

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

I agree.

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

Yes, like in real estate. You've got rental passive income and through that, it can be your payment to those liabilities you have.

[Findingnemo]

snip~
.
.
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!  

Don't forget when you are earning more then you will also spend more that is called lifestyle trap this can happen for anyone like when they are jumping from $6K salary to $10K they will add something into their life to show off but that can be completely avoided in the sense when we realize the importance of savings and investments which are the ways to achieve financial freedom and early retirement.

[SirLancelot]

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.

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.