Most People Cannot Distinguish Between The Two - And Throw Their Hard Earned Money Into Debt, Assuming It's An Investment In The Future, While It's Really A Piled Up Expense.
An expense is a self - terminating item, which has no possible chance for a value return. A cup of tea is an expense; a computer printer is an expense. Neither of these can produce any future value.
An investment, on the other hand, is when a purchase works for you. When you make an investment, you are investing your money for a future return, similar to a dividend paid by a bank on a savings account.
Purchasing a house is often an investment but sometimes it's really an expense. If you buy a house and take only 20% mortgage, not only can you receive the rental monies for the property, but as the housing value increases, it earns money just by existing! But if you, on the other hand, take a 90% mortgage on the house, you are literally investing in the bank, not in your future; most people find that their return to the bank is 150% more than the house really cost!
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