by Susantha Nanayakkara

Created on: January 18, 2011   Last Updated: January 19, 2011

Fundamentals for investments in Financial planning

If you want to enjoy your life you need to acquire liabilities.They are ,such as, a comfortable home in a good neighbourhood, sophisticated car.You have to go on good vacations. They are in addition to your basic needs.

All those services and products take money out from your pocket or expenses for you. They are considered as liabilities.Money gone out from your pocket is collecting in some others pocket who can provide with you those requirements. Liabilities eats up your money.

Many of us are employees.We work for somebody for a rate depending on our skills and time.That money is not own to us,but they are own to our requirements providers or to our liability creators.In other words, we are indirectly employees of those liability suppliers.

In Babylonian civilization, a story is written on clay tablets.There ,a rich man coming to a person who copy write laws in the country on clay tablets.For his service rich man taught him principles of the Rich's path.Employee was asked what he do with his salary from the king. He start to tell all his payments for his service providers to live his life.Then rich asked you employ and earn,but where is your own payment.He had no answer.That understanding was his first lesson to become rich.A lot of clay tablets found on that teaching and lesson went on until the employee had become a very rich person in Babylon.

The same mentality continue with employees.When we earn money we think of buying a car on lease then we think of taking a home mortgage.When we get a better pay we increase our rent or mortgage on home or lease on a car by changing our house or car to a more expensive one.We enter into a ‘rat race’ and earn money to pay others then more earnings create more expenses and end up with almost zero budget balance before next pay cheque,irrespective of the size of it.

Rich people are not employed, but they enjoy a lot of better cars,houses and expensive vacations.How do they earn money? We fill their pockets with money as they provide us with facilities ‘yet they are liabilities’ and we owe to them and we must pay from our earnings.So, indirectly employees are the people who earn for the rich.

One of my friends has a duplex and two triplexes. Friend live in one house and other houses are rented out.My friend was telling me that those renters pay his mortgage to the bank, together with property taxes and maintenance cost  by hard earned employment

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