After spending a week working through my bank statements and planning Taxes. I understood one thing. I am a financial illiterate. My understanding debit is the money going out of the account, whereas credit is money coming in.
“Correct. Now you are learning.” I heard a familiar voice.
“Ah!! Who are you?” I asked.
“I am inuke. Your friendly neighborhood Writer, Critic, Storyteller, and financial advisor.” The annoying voice continued.
“So you are still around. Huh? I thought... Never mind. Just get out. I am about to write a blog about how to read a financial statement. You know, there are many who like to learn about this stuff.” I expressed my excitement to inuke.
“Oh!! Yes… Yes… Please do that. It will be very helpful for the people who still are using the abacus. Dude!!! Already you have very few audience members why kill them with the boring stuff.”
“What do you suggest?” I asked knowing that inuke will be 70% sarcasm and 20% nonsense and 10% information. But what else can a guy who is spending 80% of his waking hours looking at the computer screen and writing test cases and documentation?
“Do you know what is assets and liabilities?” Inuke asked.
“Yes!!, An asset is Asset. Liability is something … “ I thought hard and came up with the best example. “Ok asset is something that is under your control. Like how CIA has assets on the ground and when someone becomes a liability they activate the ..” I stopped when I sense a murderous rage from inuke.
“No... No... Please carry on with the nonsense. This is the reason why you are in this financial hellhole. Your reference for financial understanding is Jason bourne a guy suffering from amnesia who keeps getting unaccounted money.. Arrrggghhh..” inuke facepalmed.
“Alright. Calm down.” I paused and let inuke relax a bit. “Please explain what is an asset and what is a liability.?”
“I read this book again, Rich Dad Poor Dad. Good book. Anyway, so according to the book. An asset is something that puts money in your pocket every month and a liability is something that takes money out of your pocket every month. You understood?” inuke asked me.
“So, my salary is something that puts money in my account, And my wife..”
“Please Stop…” Inuke stopped me before I could finish my sentence. “It is a good thing she does not read your blog. Otherwise, you would end up dead or worse."
“Ok.” I agreed.
“Assets are things that generate income. If you own a house and you rented it out it is an asset as it generates income. And If you own a house and you are paying a mortgage, that liability. Another example of a liability is Credit Card Debt and personal loan. I understand that you had experienced these two.”
“Not a pleasant one,” I replied.
“Exactly, And that is why you need to learn more about finance. Because it is important if you want to have time to chase your stupid dreams and live life. Otherwise, you will always be busy working and wondering where is all that money.” Inuke said looking at the screen trying to remember something.
“Ok!! So If I buy a noise-canceling headphone with my next salary…” I tried searching for inuke but he already left.
Looks like I shouldn't be buying those expensive headphones. Anyway, I hope you enjoy the post. I am still trying to be consistent with my writing and looking for a balance between work and personal life. Because lately its been all work. But I am happy as it is providing me with new challenges and motivating me to learn more about my job.
See ya soon.
And before I go special thanks to IndiaUnited and BeAwesome communities. And I am adding Leo also to the list as it has some really interesting posts too.
Thank you for your time.
❤️☮️
