How I Stopped Being Broke: Assets, Liabilities and the Money Mindset That Changed Everything

I'll be honest: being broke feels awful. It's like trying to swim with lead shoes, especially when family or employees rely on you. For years I blamed bad luck, timing or a universe that seemed to have it in for me.

Over time I realized something uncomfortable: most of my money problems weren't about luck at all. Being born into a wealthy family helps, of course, but plenty of rich people go broke too. The real difference is how we handle money. A small shift in mindset changed everything for me.

Key takeaways
An asset puts money in your pocket. A liability takes money out. Income alone won't make you wealthy, because habits decide what you keep. Audit your cash flow, cut what drains you, avoid expensive debt and build income-producing assets step by step.

Assets vs. liabilities: the simplest definition

I used to think assets were "things I own" and liabilities were "things I owe". Then I found a far more useful definition:

Ask this about every big purchase: "Will this grow my money or drain it?"

How my money mindset changed

In my first semesters at university, I got into entrepreneurship like many of my classmates. In a post-communist country, starting your own business wasn't a common path. The spark came from the most cliché source possible: Rich Dad Poor Dad by Robert Kiyosaki.

I was studying economics, yet university was mostly preparing us to be solid employees in someone else's business. Nobody taught us how to build or invest in one. That book showed me two very different ways of thinking:

• The wealth builder asks: "Will this grow my money or drain it?"
• The money consumer says: "I deserve this car, this flat, this holiday…"

Once I saw the difference, I couldn't unsee it.

Why high earners still go broke

Every year we read about athletes, lottery winners and celebrities who earned millions and ended up bankrupt. Their problem was never income. It was lifestyle growing faster than income, liabilities disguised as status, and no system for building assets.

A big salary doesn't make you wealthy. What you keep and invest does.

The opposite: Warren Buffett's habits

• He bought his first stock at age 11.
• He became a millionaire in his early 30s, mostly by saving and investing, not spending.
• He still lives in the Omaha house he bought in 1958 for $31,500.

Few of us will buy Coca-Cola shares in 1988 like he did. The lesson isn't to copy his trades. It's to see how far healthy habits plus time can take you.

Liabilities: what to watch out for

A liability is an obligation you must pay in the future, such as borrowed money or recurring costs.

• Credit cards: high-interest debt that compounds against you.
• Personal and consumer loans: a quiet, constant drain on your cash flow.
• Car loans: the car loses value every year while the payments continue.
• Mortgages: a home can become an asset, but the mortgage is a liability until it's paid off.

Not all debt is bad. Debt that funds an income-producing asset can make sense. Unplanned or excessive debt is what erodes wealth.

Assets: what to build

An asset is something you own that earns money or provides lasting value.

• Stocks and ETFs: grow in value and may pay dividends. See our ETF guide.
• Bonds and P2P loans: pay regular interest, with their own risks.
• Real estate: rental income plus potential long-term growth.
• A business or side hustle: cash flow you create yourself.
• Intellectual property: books, courses, designs or digital products that earn royalties.

Can a liability become an asset? My car story

A few years ago I worked at a real estate agency in Sofia. Bulgaria's real estate market is barely regulated, and the environment was draining me emotionally. I kept going because quitting felt like failing: "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 real concern, were the push I needed. The next day I quit. I was so happy.

There was one problem: I had no savings. My girlfriend and I lived in a beautiful but expensive flat, a big liability and an unusual mistake for me. I sent out CVs and cover letters. Nobody called. Rent day was getting closer.

The only way I found to earn money immediately was my car. I started driving for a ride-hailing service. A cheap car with cheap fuel paid my rent and bills, and it gave me the freedom to start this blog.

My car went from a liability to an asset. It's about perspective and creativity. Before you see something you own as a burden, ask whether it could earn money instead: a spare room, tools, equipment or a skill.

Your 6-step plan to stop being broke

1. Do a money audit. List your assets, liabilities and monthly cash flow, meaning income minus spending.
2. Cut the drains. Cancel unused subscriptions, sell things you don't use, and stop time-wasters.
3. Build an emergency fund. Start with one month of expenses, then grow it to 3–6 months.
4. Kill expensive debt. Pay off the highest-interest debt first.
5. Invest in income-producing assets. Start small with diversified ETFs or other assets you understand. Explore our topics.
6. Turn liabilities into assets, and keep learning. Review your plan every few months.

Quick quiz: test your money mindset

1. What's the best question to ask before a big purchase? "Will this grow my wealth or drain it?" This one filter separates asset-building decisions from liability traps.

2. Which of these is an asset: a new car on finance, a designer watch, or a dividend-paying ETF? The ETF. It pays you, while the other two cost you or lose value.

3. Should you invest at 6% while carrying a loan at 8%? No. Paying off an 8% loan is a guaranteed 8% "return", and investing at 6% while paying 8% leaves you poorer overall.

The takeaway

This isn't about pinching every penny or denying yourself the things you love. It's about making thoughtful, healthy money choices. If you remember one thing, make it this question before every purchase:

Is it a financial burden or a blessing?