your home is your biggest liability

Your house is your biggest liability

We all are proud of our most prized possession– HOME, parting with it seem to be anathema to every one of us, this is our biggest asset and achievement over these years, but is it really so –the abode of peace and serenity , but is it really so?

Well let’s go back to school, where our accounts teacher would in a stern tone always advocate that an asset is something that puts money in your asset, and a liability is something that takes money, out from your pocket, – always remember Debit the asset account and credit the liability account

You must be contemplating as to why am I telling you such stuffs which you are already well versed of,

We live in a revolutionised society wherein the middle class occupies the lion’s share of population, and, and it is the middle class who is always burdened with whooping expenses such as home loan, credit card loan, education fees  and other liabilities. Their liabilities side would any day outweigh the asset one with huge amount,

Now can your home meet all the expenses that is incurred on it- your home loan, maintenance cost, and all other petty expenses that eventuates in our daily chores with regard to our abode

no not possible home is a non-living entity made of brick and cements it doesn’t go to office it doesn’t bear those hectic metro travels, cramped into one compartment with hundreds of men, it doesn’t have to listen to the chidings of the boss when the targets are not met, it doesn’t pay your child’s educational loan, your life insurance premium,  a television, washing machine, air conditioner, your everlasting desire for car , well my friends the list will never see its end,

So why do we proudly tout as home being our biggest asset,  in the process of owning a home we forsake all those other investment opportunities which we could have leveraged on and could have otherwise met not only our home rent but also leave us with enough to sum to invest in fixed deposits, government bonds, capital market

sometimes we are so desirous of having our prized possession that we trade off all our other quests , and when there is a mishap, and due to some reasons we lose our job then that totally wrecks us, disillusioned us, leaves us traumatized

The bank is never going to adjust your helplessness, even  though financially strained you feel inflation is yet another devil that will  eat away all your savings , I strongly believe that home is the most important priority for anyone but what is really important  is to always apprehend your circumstances and look for alternative sources of income which could finance your home loan instead of adding to the ruins

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