Too Many Assets Is A Liability

In layman’s terms, there are simple ways to determine one’s wealth. A large home, a luxury car, unique furniture and the like can all indicate that the owner is above average in terms of income. To an ordinary person’s mind, a homeowner who has more furnitures, fixtures and appliances in his home must be rich. Therefore, a lot of people equate more assets with more wealth.

This mindset is not a good way to go about increasing one’s wealth as there are hidden costs to this mentality. The more furniture one has, the less space is available in the home. It also costs more to maintain it and more effort to relocate it. A wise man knows that wealth doesn’t need to be flaunted uselessly.

An ideal home is one that is decorated in such a way that it still feels welcoming without having too many stuff littering its interior. In fact, most families will have bought too many items at one time or another. The best solution for this is to conduct yearly spring cleanings and yard sales. Items that don’t get sold should be thrown out as they only cost more to store.

It’s also better to think about how an item will be used before its purchased. The buyer should visualize if the item can fit in his home. If there’s no practical use for it in the household, then it’s better to save that money.