How I Learned to Stop Being Broke (and You Can Too)

I’ll be honest: being broke feels awful. It’s like trying to swim with lead shoes — especially when my family or employees rely on me. I used to blame bad luck, fate, or the universe just being mean.

But over time, I knew something: most of money problems weren’t about luck at all. Of course it is easier if I was born in a rich family, but rich ones go broke too. The real problem is how we handle money.

And trust me, a tiny shift in mindset can change everything.

The Difference Between Assets and Liabilities

I used to think assets were just “things I owned” and liabilities were “things I owed.” Then I realized it’s simpler than that:

• Assets = money makers. They put cash in my pocket.

• Liabilities = money suckers. They take cash out of my pocket.

But here’s the fun part: some liabilities can actually become assets if you get creative.

How I Changed My Money Mindset

In my first semesters at university, I started getting into entrepreneurship—like many of my classmates. In a post-communist country, entrepreneurship wasn’t exactly a common path. The spark came from the most cliché source: Rich Dad, Poor Dad. But honestly, that book was eye-opening for me. I was studying economics, yet the university was all about preparing us to become a just solid employees in someone else’s business. It didn’t teach us how to actually build or invest in one. The ideas in that book completely shifted my mindset.

From that moment I see two types of behaviour:

• Focused on building wealth: “Will this grow my money or drain it?”

• A money consumer: “I deserve this car, house, vacation…”

  
  

I couldn't unsee it anymore.

Real-Life Wake-Up Calls

I scroll through stories of ex-millionaire athletes going bankrupt and think: “Why nobody told you?”

Even massive income can’t save us from poor financial habits. We are just good earning broke.

On the flip side.

Value Investing Maniac

• Started with almost nothing, yet he managed to became a millionaire at age of 30.

• Bought his first stock when he was 11 years old.

• Has lived in the same Omaha house since 1958 that he originally bought for $31,500

Of course those are extremes. Not many of us will invest in Coca-Cola in 1988, or buy million-dollar mansions way above his income. The idea is to distinguish what a healthy and unhealthy habit can do to us.

80% of work is done by simple steps:

1. Make yourself an audit. Assets/Liabilities and cash flow.

2. Remove the unnecessary stuff (sell the things you don't use, or time wasting)

3. Avoid unnecessary debt

4. Invest in income-producing assets (check our Categories)

5. Turn the liabilities into assets

6. Learn and polish.

Liabilities:

A liability is an obligation a person or company must pay back in the future, such as borrowed money or unpaid expenses.

• Loans (student, personal, whatever) = sneaky cash drain.

• Credit cards =  High-interest debt

• Car loans = depreciate quickly, and loan payments reduce cash flow

• Mortgages – Though owning a home can be an asset, the mortgage itself is a liability until it’s paid off.

While not all liabilities are inherently bad, excessive or mismanaged debt can erode wealth.

Assets:

An asset is something valuable a person or company owns that can be used to earn money or provide benefits.

• Real estate – Rental properties generate monthly income while appreciating over time.

• Stocks & bonds – Investments that grow in value and may pay dividends or interest.

• Business ownership – Companies or side hustles that provide consistent cash flow.

• Intellectual property – Books, patents, or digital products that earn royalties.

But, can a Liability Be an Asset?

My Car Story

A few years ago I worked in a real estate agency in Sofia. In Bulgaria the real estate market is not regulated, so the environment is extremely unpleasant. I didn’t know it before I started, but I kept working and it was draining me emotionally. But I kept going because I saw it as a failure. “I have to be good at everything.” One day during a video-call my mother looked at me and said: “Deni, you don’t look well, why don’t you think about changing your job?”

Those words, said with great concern for my happiness and health, were the little push I needed. The next day I quit. Damn, I was so happy.

Unfortunately, I had no savings... Besides, my girlfriend and I lived in a very beautiful (I always had great taste) and expensive apartment. A big liability - something very unusual for me. I was always careful with my expenses. But this job was thankless for me and the impulsive decision with this apartment quickly put me at rock bottom.

So I started sending out resumes and motivational letters. Nobody called me... My rent day was approaching.

The only option I found to earn money right away was with my car. There is no Uber in Bulgaria. Taxi lobbies pushed a law through the parliament... There is a similar one, also "illegal", but I had to survive somehow. So, this one saved me. A cheap car with cheap gas and I was paying my rent and expenses. And you know what, it gave me the freedom to start this blog.

It’s about perspective and creativity.

Stop seeing liabilities as purely burdens. Instead, explore ways to leverage them for financial gain.

Hey, are you ready? Test your knowledge!

(Answers at the bottom)

Which mental framework helps you decide before buying whether something will build wealth or drain it?

• Asking “Do I deserve this?”
• Asking “Will this grow my wealth or drain it?”
• Asking “Will this make me happy right now?”
• Asking “Is this what my friends have?”

Which of these is a financial asset (rather than physical/tangible)?

• Land
• Machinery
• A bond or stock
• Warehouse building

You have a loan charging 8% annual interest. You have an opportunity to invest in something expected to yield 6% annual return after fees. Should you take it?

• Yes, because it’s still a positive return
• No, because your debt costs more than your investment return
• Only if you can adjust the interest rate
• Only if you can convert the loan to equity

1. Asking “Will this grow my wealth or drain it?”

   This simple mindset filter separates asset-building decisions from liability traps.

2. A bond or stock. (The rest are physical ones)

3. No, because your debt costs more than your investment returns

   Paying off debt with 8% interest is a guaranteed “return.” Investing at 6% while carrying 8% debt makes you poorer overall.

The Takeaway

This article wasn’t about pinching every penny or denying yourself the things you’ve long desired. It’s about making thoughtful, healthy financial choices. If you take away just one thing, make it this. Before spending, pause and ask yourself:

Is it a financial burden or a blessing?