Today's video is about how to take a liability and turn it into an
asset.
I am Tiffany Thomas, a financially free millionaire.
If you're looking to become one of those as well, make sure and hit
that like button and hit the subscribe button, and we're going to dive
right in.
In today's video, we are going to define a liability as something that
takes money from your pocket.
And we are defining an asset as something that puts money into your
pocket.
I'm sure you've seen Robert Kiyosaki's chart that shows income and
expenses and assets and liabilities, and he breaks it down and talks
about how the rich or the wealthy, they have their income and they buy
assets with that income and then those assets buy their liabilities
and pay for their expenses.
So if you want to become wealthy, you are going to want to have more
assets than liabilities.
So let's talk about the liabilities that you may have already
purchased, those items that are not making money for you, and talk
about how we can turn those liabilities into assets, how we can turn
those items from taking money out of your pocket and putting money
into your pocket.
Because we want to have the ability to control our own cash flow.
We don't want to always be relying on someone else for money or
working for someone else to receive money.
We wanna have things that we own that can make us money.
The first asset that I want to talk about is probably your largest
expense, and this is going to be housing, your mortgage expense.
This is the highest expense for most Americans.
So if we can turn this expense into something that is going to make us
money, it is going to make a significant difference.
And a lot of people already think that their home is an asset, but if
we are defining an asset as something that puts money in our pocket,
our home is not doing that, unless we are utilizing a few different
strategies that I'm going to talk about.
One thing that works really well for me and turning my home into an
asset is to have roommates.
In my previous place that I lived in and actually sold recently.
I had three roommates in there, so I was collecting a lot of cash flow
from owning that property.
And honestly, my roommates were paying me to live there because the
amount that they were paying in rental income was covering that
mortgage payment, the taxes, and the insurance that I was paying, plus
the HOA, the homeowner's association fee, and the utilities.
So I was profiting about $300 every single month.
By getting a roommate that is just one way that we can turn our home
into an asset so that it is making us money instead of taking money
from us.
Another way that we can make money from our home is by renting out a
room or even the basement on Airbnb, or if we are going on vacation,
we can even rent out our entire place on Airbnb or another short term
rental site.
And of course this does take some upfront work.
You wanna be sure that when you are listing a room on Airbnb that you
specify if they can use the kitchen area, the living room area, or
even the washer and dryer, or if they just have access to a private
room and bathroom.
But in case you didn't know, you can set it up just to rent out
strictly a room and bathroom on Airbnb.
So if you have an extra room, maybe in the basement, you could rent
that one out and start making money from your home.
And if you are one that travels a lot, then you can definitely make
some extra money by renting out your house short term while you are on
vacation.
And of course you wanna make sure that some things are in a securely
locked room, but you can just plan ahead and be ready for that when
you do go on vacation.
And if you're gone for a week, then you can rent it out for the whole
week.
Or even if you were just gone for a weekend, you can rent it out on a
weekend.
And another idea is to even rent out your garage.
Maybe someone just needs some storage space or if you have a shed in
your backyard or even an extra bedroom that you don't want a person
living in, you can use that for storage.
There are different websites people use when they are looking for a
place to store their stuff.
Instead of using a storage shed, they can use someone's bedroom and
that way it's climate controlled.
Or if you have a large driveway, you can rent out space in your
driveway.
There are people that have RVs or boats and they only use them during
certain times of the year, so they can use your driveway spot and you
can charge for that.
And even going back to the roommate idea, there are also websites for
traveling nurses.
So there could be someone that just needs a place for a month or maybe
three months, so you wouldn't have to rent that room out permanently.
You could do it for a short term.
Another thing that you can do to make money from your own home is to
start your own business.
And that way you can write off different expenses from your home.
I know for me, the office space that I use in my own home, I write
that off on my taxes.
And you can also do that with your utilities.
Those are just a few ways that you can turn your home from a
liability, something that's taking money out of your pocket and turn
it into an asset, something that's going to put money into your
pocket.
Comment below and tell me if you have already used one of these
strategies.
And if you happen to have a larger property, you can also rent out
some of that space, some of your backyard or your acreage, especially
if you are by a lake or a park or some popular destination.
There are websites that you can post your land on and let people camp
on your land.
They can bring their own trailer or even just their own tent and camp
for the night.
So that is even another option.
Another liability that most people have is a vehicle.
One way that we can turn our vehicle from a liability to an asset is
by renting our car out to different people.
There's a website called Turo that a lot of people use.
And honestly, I have a friend that puts multiple cars on Turo and
makes really good money by doing this.
She started with one car and saw how well it was going, so she decided
to buy a couple more cars and continue to make money that way.
And especially with a lot of people working from home, working remote,
they are not using their car a lot.
So this really could be a possibility for someone to make some extra
money by just owning a car.
And then another way is to do Uber or Lyft.
You can drive people around and make money from your car that way.
And I don't personally know anyone that has done this, but there are
ads that you can put on your car and receive a monthly or maybe a
weekly payment by doing that.
So if you are one that does drive your car a lot, then you could look
into that opportunity into putting an ad on your car.
Another option could be to carpool to work or to a certain
destination.
There are people out there that don't have their own vehicle.
So you can utilize certain websites and set up a carpool so you can
pick someone up on your way to work and then carpool to work and it
can pay you money for your service.
And I'm curious to know if you have utilized any of these items to
convert your car from a liability into an asset, comment below and let
me know.
Transportation is usually the second highest expense that Americans
have.
So if you can turn this one into an asset, if you're gonna have your
car putting money into your pocket, this is going to be a big game
changer as well.
And the third item that I want to talk about is extra things that you
have around your house.
This could be purses or clothing or even decorations or even furniture
that you're not using.
Maybe some end tables or a coffee table or if you have extra pots and
pans or dishes, things in your kitchen, just different household items
that you already have.
So one way to turn them into an asset, something that's going to put
money in your pocket is to sell these items, especially if you are not
using them because they are just taking up space.
And not only are they taking up physical space in your house, but
they're also taking up mental space in your mind because you are
constantly thinking, oh, I need to get rid of that item, or I need to
clean out my closet or clean out my garage.
So find all of those extra items and sell those items online.
I personally use KSL because I'm in Utah.
It's a very popular website here, but I know that a lot of people use
Facebook Marketplace or even Craigslist.
So find a platform where you can sell these items and take pictures of
them or write up a little description, decide on a price and sell
them, make some money from these items that you have already purchased
and you don't even want anymore.
I did this recently.
I purchased some new pans that are really nice and so I wanted to sell
my old pans, which were in pretty good condition.
So I took a picture of my pan set together and posted it on KSL and
was able to sell my pan set.
And I've also done it with multiple other items in the past.
So I know it is possible.
And the next item that I wanna talk about is a little bit different,
but it is very important.
And this one is our time.
The things that we are spending our time on can be very valuable and
put money in our pocket, or it can be very expensive and take a lot of
money out of our pocket.
We want to be really careful on what we spend our time on.
Think about what you are spending the majority of your time on.
Are you scrolling through social media for hours on end or are you
listening to a finance book in the library to help you improve your
finances?
Are you binge watching Netflix shows or are you watching YouTube
videos that are educational?
Are you spending time with people that are sucking energy out of you
or are you spending time with people that are giving you energy?
Think about where you do spend the majority of your time and do you
need to realign that?
Do you need to focus more on education, more on building up your money
making skills, or do you need to spend more time with family?
Or are you just not very organized with your time?
Do you feel really busy and stressed all of the time that you just
have way too much to do and not enough time to do it?
One thing that helps me better manage my time is actually just writing
down two or three things at the end of my work day that I need to
accomplish the next day.
So when I sit down at my desk, I look at my list and I can immediately
get to work because I know exactly what I need to be working on that
day.
Also, setting goals is another thing that helps me manage my time
better.
If I have something that I am working toward, then I want to work on
that thing.
If I'm just sitting at home being bored and not really knowing what to
do, then I may get on social media.
So when I do have a goal, it helps me manage my time better.
Comment below and tell me one thing that you do that helps you manage
your time better.
When we are managing our time better, we are able to make more money
because we have the time to focus on our finances, focus on updating
our budget or spending our money on investments.
One thing that helps me be better with my money is using a free app.
It's called Personal Capital.
You can hook all of your financial accounts to Personal Capital and
then you can log into Personal Capital every single day for maybe 30
seconds and you can see exactly where you are with your finances.
You can see how much is in your Roth IRA or how much is in your
checking or your savings and all of the bills that came through and
the income that has come in.
If we can see our financial picture, we are going to be a lot better
with our money because we will know exactly where we are financially
and then we can set goals to improve and become better financially.
If Personal Capital is something you're interested in, I will leave my
referral link below.
You can click on that and set up a free account.
Comment below and tell me how you are going to turn one of your
liabilities into one of your assets.
And if you found this video helpful, please hit that like button and
share it with someone else who would like to hear this information,
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And if you wanna see even more content from me, make sure and check
out the videos on the side of the screen.
Thanks so much for watching.
I'll see you in the next video.