An asset is something you own that has an economic value. Some of your assets may be converted into cash rather easily, while others may not. Your assets may fall into 3 broad categories:

– Cash & Cash Equivalent
– Lifestyle Assets
– Income Generating Assets

Having a strategic allocation of your resources is an important and critical part of your financial planning and wealth building process.

Types of Assets

Cash & Cash Equivalent

Bank deposits, Fixed deposits, Structured Deposits, Bonds, Cash Accounts etc, all fall under this category. These instruments are safe and usually provide a return of 0.5% to 3% per annum. However, they do not hedge against inflation.

Lifestyle Assets
Your home and its renovations, Car, Jewellery, Country club memberships etc all fall under this category. These are assets that depreciate in value over time. This class of assets usually does not help you in your wealth building process. They are consumption-based rather than accumulation-focused.

Income Generating Assets

Insurance, Hedge funds, Collective Investments, Stocks and Shares, Investment Properties, Mutual funds, High-yield Bonds, Acquired Skills (I will elaborate my skills as a Trader at the end & etc. This class of assets provide you with the potential of capital appreciation and/or streams of income through dividends and coupon payments. Keep building this IGA Portfolio and soon you will be able to achieve financial independence.
Type of Liabilities

A liability is a debt or burden that you have assumed, and which incurs an interest upon repayment. Too many liabilities may hinder your ability to create wealth. In other cases, they may even lead to bankruptcy. There generally exist categories of liabilities:

– Short Term Liabilities
– Medium Term Liabilities
– Long Term Liabilities

Short Term Liabilities

Study Loan, Credit Card, Hire-Purchase Account, Renovation Loan etc. These are some examples of short term liabilities. Those who are currently in Gen Y and those moving towards the age group of Gen X are the common people who fall under such debts. If you are not careful with them, such debt instruments can be stretched to become medium term liabilities.

Medium Term Liabilities
Car loan, Overdraft, Home Loan, Business Borrowings, Renovation Load etc, are some examples of medium term liabilities. Those who use them extensively are usually those in Gen X and those moving towards the Baby Boomer’s age group. If you are not careful in managing this category of debt instruments, they can be detrimental to your retirement dreams

Long Term Liabilities
Bank overdraft, Car loan, Mortgage Loan, Investment Property Mortgage Loan, Business borrowing etc, are some examples of long term liabilities. Those who utilize this category of debt instruments are the Baby Boomers, and in certain cases, Retirees. If you are not careful in using and managing these debt instruments, they may wipe out your entire financial security and retirement dreams. Many have gone bankrupt because of piling long-term liabilities which placed a heavy burden on their cash flow and ability to service those debts.

People borrow and get into debts for many reasons. If you did your sums and have borrowed for the sole purpose of wealth creation, you have incurred ‘good debts’ for yourself. However, if you have borrowed and got indebted solely for the purpose of enjoying a certain lifestyle or the purchasing of lifestyle assets, you are effectively trading your future freedom for immediate gratification.

Many who borrowed heavily to fund their current lifestyle always assume that their future income streams will be certain and stable. How wrong can they get? During the past economic cycles and downturns, we have learnt that one can lose his or her job or income rather unexpectedly. Finding a replacement job may not come as easily or as quickly as one would hope. Many are caught in a financially strapped situation during depressing times. Some have had their retirement dreams squashed. Others went bankrupt. Some even committed suicide. That is reality for you.

When you are burdened with too many liabilities, especially long-term ones, you are exchanging your rights to financial freedom for slavery to the financial institutions that have provided you with the loans. One of your goals is to eliminate all debts and liabilities as quickly as possible and embark on the journey of wealth creation and wealth accumulation towards financial independence and freedom.

I have learnt valuable lessons in using and managing debts and liabilities. Borrowing always seems easy in good times. However, if you are unable to repay those debts, especially during hard times, you may end up financially incapacitated or dead, i.e. bankrupt.

Do not over-gear or over-borrow. Do not short-change yourself – because your future is worth it.
No one plans to fail.
But many fail to plan

The rich believe that financial independence is more important than displaying a high social status.
Understanding your spending habits is key to managing your cash flow and the secret to successful financial management. Your ability to achieve lifetime success depends largely on your saving propensity, rather than your earning capacity alone. By and large, the 3 Financial Models: 33, 35 and 37 will describe how most people manage their income and cash flow. I will share more of these 3 financial models with you in MY NEXT SHARING.


  1. Lisa 2 weeks ago

    Hello my loved one! I want to say that this post is amazing, nice written and come with almost all vital infos.
    I’d like to look more posts like this .

  2. Elvira 2 weeks ago

    I like the helpful information you provide in your articles.
    I’ll bookmark your weblog and check again here frequently.
    I’m quite certain I’ll learn a lot of new stuff right here!
    Best of luck for the next!

  3. Howdy! I just wish to give you a huge thumbs up for the
    excellent info you have right here on this post. I am returning to your website for more soon.

    Also visit my web blog Testo Fit Extreme Ingredients

  4. ViagRx Review 2 weeks ago

    Keep on writing, great job!

    My website – ViagRx Review

  5. My brotһer suցgested I might like this website. He was totally right.
    This post actually made my day. You cann’t imagine justt how much time I had spent for tһis information! Thanks!

  6. Аs the admin of this web page is working, noo doubtt very rapidly it will be famous,
    due to its fеature contents.

  7. Muama Ryoko Review 2 weeks ago

    Hi, constantly i used to check web site posts here early in the
    dawn, as i like to find out more and more.

    Here is my webpage; Muama Ryoko Review

  8. Truvita CBD Reviews 2 weeks ago

    I am not sure where you’re getting your info, but great topic.
    I needs to spend some time learning more or understanding more.

    Thanks for magnificent information I was looking for
    this info for my mission.

    My site :: Truvita CBD Reviews

  9. Rhino Spark Review 2 weeks ago

    Asking questions are truly good thing if you are
    not understanding something totally, but this piece of
    writing provides fastidious understanding yet.

    My blog :: Rhino Spark Review

  10. Rhino Spark Review 2 weeks ago

    Does your website have a contact page? I’m having a tough time locating it but, I’d like to
    send you an email. I’ve got some ideas for your blog you might be interested in hearing.
    Either way, great blog and I look forward to seeing it improve over time.

    Feel free to visit my web page; Rhino Spark Review

  11. Gentille Derma Review 2 weeks ago

    Purely to follow up on the update of this matter on your web page and would wish to let you
    know how much I liked the time you took to publish this valuable post.
    In the post, you really spoke of how to truly handle this
    matter with all ease. It would be my pleasure to accumulate some
    more thoughts from your site and come up to offer other folks what I have learned from
    you. Thanks for your usual good effort.

    Also visit my page: Gentille Derma Review

  12. I think the admin of this web site is truly working hard in favor
    of his web site, as here every material is quality based data.

    Check out my web site

  13. This is really interesting, You’re a very skilled blogger.
    I have joined your rss feed and look forward to seeking more
    of your fantastic post. Also, I have shared your web site in my
    social networks!

    Here is my homepage; Essential Nutrition Performance Enhancer Review

  14. Aw, this was an incredibly good post. Taking the time and actual effort to produce a very good article… but what can I
    say… I hesitate a lot and don’t manage to get nearly anything done.

  15. Herbivore CBD Review 2 weeks ago

    Hey there! I’m at work browsing your blog from my new apple
    iphone! Just wanted to say I love reading your blog and look forward to all your posts!
    Keep up the great work!

    Here is my web blog: Herbivore CBD Review

  16. I really like your writing style, superb information, regards for posting

    my web site :: Pure Optimum Keto Burn

  17. I simply could not leave your site before suggesting that
    I really loved the usual information an individual provide to your visitors?
    Is gonna be again frequently to inspect new posts.

    Feel free to surf to my web page Paramore Cream Review

  18. Keto Redux Review 1 week ago

    Hi friends, good paragraph and pleasant urging commented
    at this place, I am really enjoying by these.

    my page: Keto Redux Review

  19. Hello there! I could have sworn I’ve been to this blog before but after reading
    through some of the post I realized it’s new to me.
    Anyhow, I’m definitely glad I found it and I’ll be book-marking and checking back frequently!

    Feel free to surf to my web blog: Pure Optimum Keto Burn Review

  20. Leah 5 days ago

    I am only commenting to make you be aware of what a amazing discovery my wife’s daughter
    undergone checking your site. She came to find lots of issues, with the inclusion of how it is like to possess an ideal teaching mindset to get other people smoothly learn certain complicated matters.
    You undoubtedly surpassed people’s expectations. Thanks for
    presenting these essential, dependable, educational and easy tips about your
    topic to Sandra.

    My web page :: Leah

  21. Great post, I believe website owners should learn a lot from this site its rattling user genial.
    So much great information on here :D.

    My web site – Gorges De Soleil Cream Review

  22. Astroscope Review 5 days ago

    Really great visual appeal on this website, I’d value it 10.

    Stop by my blog – Astroscope Review

  23. If you are going for most excellent contents like myself, only go to see this site everyday because it presents quality contents,

    My web page :: Calm CBD Gummies Review

  24. Thank you, I have recently been searching for info approximately this subject for ages and yours is the best I’ve
    discovered till now. However, what about the conclusion? Are you certain in regards to the supply?

    My blog post Pellamore Moisture Therapy

  25. Astroscope Review 13 hours ago

    Hi everyone, it’s my first visit at this web site, and piece of writing is genuinely fruitful designed
    for me, keep up posting such posts.

    Stop by my blog … Astroscope Review

  26. Compoise CBD Gummies 2 hours ago

    My partner and I stumbled over here by a different web page and thought
    I might check things out. I like what I see so now
    i am following you. Look forward to finding out about your web page repeatedly.

    my website Compoise CBD Gummies

Leave a reply

Your email address will not be published. Required fields are marked *



We're not around right now. But you can send us an email and we'll get back to you, asap.


FINWAZE makes no representations or warranties, express or implied, in relation to this website ( or the information and materials provided on this website. It does not also warrants that this website will be constantly available or available at all times. The information on this website is complete, true, accurate or non-misleading. Nothing on this website constitutes, or is meant to constitute, advice of any kind. FINWAZE shall not be liable for any damage or injury, whether direct or indirect, that it may cause in relation to the contents of, or use of, or otherwise in connection with this website. By using this website, you agree to the reasonableness of the limitations of liabilities herein set out and further agree to assume whatever risk, loss, damage or injury in may cause in connection to the use of this website. No claims shall be brought personally against the officers and employees of FINWAZE, in connection with the use of this website. The user of this website agree to the limitations of warranties and liabilities herein set out to protect the officers, employees, agents, subsidiaries, successors, assigns and sub-contractors as well as FINWAZE. Any unenforceable provisions that may be found on this website under applicable law shall not affect the enforceability of the other provisions.

Legal Documents  |  ©2021 Finwaze Philippines

Pin It on Pinterest

Share This

Log in with your credentials

Forgot your details?