What is asset? What is liability? Assets are the items you owns that can provide future economic benefit while liabilities are things we own with future obligations. In a simple definition, assets are things we buy that will bring money back to us while liabilities are things we buy that we will keep spending money on. Assets put money in your pocket while liabilities take money out of your pocket.
Most Africans especially Nigerians prefer liability to asset. In the journey of becoming a successful being, it is advisable to acquire more assets than liabilities. The questions here is where does 70%- 80% of your income goes? Asset or liability?
Imagine someone that can hardly feed himself twice daily buying an expensive phones and cars without a specific purpose (just for fashion). This is the different between the rich and the poor. The rich invest in what can fetch them more money (asset) e.g buying land, investing in reputable businesses but the poor out of fashion keep buying liabilities (goods that they keep on spending their little earnings on for maintenance). If 70%- 80% of your income goes to liability then one is preparing for a poor life.
I'm not saying buying expensive phones and cars isn't good but shouldn't be priority over ones investment. Phones and cars maintenance in some countries are expensive. So this may prevent one from saving if one acquire it without a good job.
Conclusion
👉👉Let 70%- 80% of your income goes to asset. It is better to invest ones money on asset than getting liabilities that will bring no income.
👉👉Only acquire liability if the liability will add value to you, your business or improve the income made in your business.
👉👉Only acquire liability after gotten a good investment that is capable of providing enough returns for your home and the liability purchased maintenances.
It seems you are a little confused or trying to make these financial matters far more complicated than they need to be. In simple terms, for most people around the world, the only good form of debt is possibly buying a house - which tends to have a low interest rate and in most areas goes up in value over the term of the loan above the rate that is paid. There are certain scenarios that might spur people to borrow money and it may be a necessity, like buying a car because you have to travel longer distances which might be the most economical way to do so. Generally though there are a lot of frivolous purchases made which should be scrutinized and avoided if possible, along with wasting too much money on vices like drugs or alcohol.