Do your really think your house as an Asset? Answer reveals your financial status

Is your House really an Asset?

Well, a house is a major achievement of a person's life. People often believe that spending on a house is a wise investment. But is it? really?

Considering the patterns of cashflows and valuation there are several explanations which are conflicting. Generally accounting academics teaches that an asset is something which we invest money on the very physical or intangible thing causes a value or provide a service on the investor. Similarly, accounting states that cars, lands, houses, apartments, tools and equipment are assets for the owner.

But, Robert Kiyosaki forwards a totally different view on this theoretical concept. The author highlights the huge sum of expenses incur since the day we plan building our own dream house. He states in his book, "Rich dad and Poor Dad" knowing that we are accepting a whole sum of the future expenses with the plan of building the dream house, Your house is nothing but a huge liability upon your earnings. 

Thinking patterns of the people have created all the social norms. It is your choice to whether accept it or not. However the dream of building your place of comfort is not be thrown away. But being wise to manage and reduce the expected expenses incurring along with your big dream is the key to success.

Remind it is your choice which makes your house an asset or a liability. Your literacy on finance will be the ultimate governor of your life since not merely money but wealth of a person has become the key asset of the century.