If you really want to be wealthy you can really boil it down to a rather simple idea or a simple kind of equation and that is you want to decrease your liabilities aka anything that is taking your money away from you and you want to increase your assets anything that is bringing more money into your bank account and in this video I’m gonna go over five common liabilities these are liabilities that really everyone has and they are all things that take a pretty good chunk of money out of our bank account and out of our paycheck and I want to go over how you can flip them so flip them from being one of your biggest liabilities into something that is making you money so a lot of people don’t know that you can’t earn things like your house or your car into assets turn them from liabilities to assets and I’m gonna go over five of the key liabilities that are out there and hopefully this will help some of you guys do just that lower your liabilities and increase your assets so I’m gonna go over five let’s jump into the first one and start making you some more money and if you’re new here my name is Calvin Rabb I think video is all about personal finance so if you’re interested in anything like that I would love it if you would subscribe the first liability that I’m gonna be going over is your car so this is a big liability for a lot of people that car payment is oftentimes a big one and taking a lot of money out of your bank account.
I want to talk about a few ways that you can flip it so the first way is getting involved with companies like Toro which is how you can rent out your car so maybe you don’t use your car all the time well if you put it up on Toro it allows people that are maybe visiting the area rather than getting a rental car they can instead drive your car and turbo is a pretty cool place because you could get more unique cars you know if you have a little bit nicer of a car then you can get at a standard rental place then that will be an incentive for people to use you and oftentimes you can find cheaper ones on Toro so you can involve do that there’s also a couple other places like that if you don’t really feel like renting your car like that you can get involved with more jobs and that is something like driving for uber or lyft or if you don’t want to have people in your car you can look into things just like uber eats and post mates in different like that if you don’t want to be driving people then you can look into things like advertising you know you see advertisements on people’s cars and for different companies and stuff.
So you just go online and see how much it costs for that you know you can be a driving advertisement for somewhere and it doesn’t have to be a huge sticker oftentimes sometimes you can get a little one on maybe your bumper or something like that but there are different opportunities to make your car turning it from a liability into an income-producing asset so that’s kind of interesting and hopefully one of these ways will kind of work for you the second liability and this is probably one of the bigger ones if not the biggest that is taking money out of our pockets and that is your mortgage so the mortgage for your house oftentimes scenes non-negotiable that is gonna be your biggest liability but there are ways that you can turn your house that you have and turn into an income producing assets.
So some of the more obvious ones would be like renting out a room through Airbnb or something along those lines you can also look into house hacking you can kind of live for free I have a whole video on house hacking and things like that you can also look into turning it into an HQ a headquarters and getting involved with a home based business I have another video about best home based businesses to start and there’s a bunch of different opportunities like that if you don’t want to be that hands-on or involved with someone else like that you can look into maybe just renting out your parking spot or like something along those lines if you live maybe by a popular attraction of some sort and your parking spot may be in demand there’s tons of different options to turn your house into an income producing assets so maybe you want to take on a renter maybe do the parking thing start a business but this is a great way for decreasing the liability of your house and turning it into an asset because in the book Rich Dad Poor Dad we learned that common idea that your house really isn’t an asset sometimes it’s a liability for most people so this is a way to turn that liability into an asset the third liability I want to go over is groceries so we went over transportation we went over housing and food groceries is gonna be the next big liability that you have and there are ways that you can kind of turn those grocery adventures going to the store into an income-producing asset so you can become something like a mystery shopper.
Which is someone that goes to these stores kind of just Scouts it out sees how the customer services buys some stuff and in the end you’ll have to write a review about your experience about how the customers treated you and oftentimes you can give that to the boss or the manager and that will allow them to see how their employees act around people that they just see as being normal customers so that may be something you want to look into they have different mystery shopper opportunities online you can just type it in you can also get other people’s groceries through something like TaskRabbit and there’s a bunch of different companies that do this as well oftentimes this is for someone that’s AI they’re super busy or be maybe an older individual or someone who’s sick and is unable to go to the grocery store so you can actually do that for them it’s kind of a win-win you help them get your groceries and you get paid for it so that may be something.
You want to look into another kind of small thing that allows you to turn these grocery I’m calling them adventures I think it’s a funny way to put it but these grocery adventures in some more income producing assets is by using cash back credit cards because if you use a cash back credit cards you can then buy your groceries but you’re also getting a small amount cash back or really any credit card that has rewards for grocery then you can get a reward for doing that so rather than going to the grocery store just getting the things that you normally buy it you now buy the things you normally buy plus a little reward for using that credit card so of course when it comes to credit cards you want to make sure you’re being responsible with it and paying it off in full every single month and if you can’t do that and then cut up the credit card but other than that you can have credit cards work for you so those are a couple ways that you can turn those grocery adventures into income producing assets food as a whole takes a lot of our budget.
So if you want to see ways that you can actually get free food and how to do that you can check out the video I made about how to get free food and then you can completely lower that food budget to zero so check that one out but this is all about lowering groceries as an a liability altogether and increasing it and turning it into an asset the fourth liability are your utilities and when I say that I’m really just referring to your utility bill and as I kind of thought about this I couldn’t find up a great way to completely flip it you know turn your utilities into an asset for you because you do have to pay things for things like your lights and everything’s like that however you can’t oftentimes eliminate your utility bill altogether there are ways that you can drastically decrease it so you can get efficient utilities like getting LED light bulbs next time your light bulbs go out you can also look into smart thermostats and therefore things like that that will optimize your utility bill and make sure your house is regulated in such a way temperature wise that allows you to pay the least in your utility bill you can also look into different things like solar panels and other things like then just getting your house more efficient and able to cut down on your utility bill and really all your bills altogether whether it be power bill or anything like that so there are ways that you can flip it in that way so I realize when I said that that was more of just cutting down your utility bill it’s not really turning it into an asset so I guess kind of the way we’re gonna do that is by cutting the bill.