BlogHop

Basically, there are three kinds of assets: Physical, Financial and Human. Lets look at each one in turn. A few years ago, I purchased a physical asset-a power lawnmower. I used it over and over again without doing anything to maintain it. The mower worked well for two seasons, but then it began to break down. When I tried to revive it with service and sharpening, I discovered the engine had lost over half its original power capacity. It was essentially worthless. Had I invested in PC-in preserving and maintaining the asset-I would still be enjoying its P-the mowed lawn. As it was, I have to spend far more time and money replacing the mower than I ever would have spent, had I maintained it. It simply wasn’t effective. In our quest for short-term returns, or results, we often ruin a prized physical asset-a car, a computer, a washer or dryer, even our body or our environment. Keeping P and PC balance makes a tremendous difference in the effective use of physical assets. It also powerfully impacts the effective use of financial assets. How often do people confuse principal with interest? Have you ever invaded principal to increase your standard of living, to get more golden eggs? The decreasing principal has decreasing power to produce interest or income. And the dwindling capital becomes smaller and smaller until it no longer supplies even basic needs.