Dissecting Assets & Liabilities

Knowing the Difference Between Assets and Liabilities Is the First and Most Important Lesson Towards Gaining Financial Consciousn

- 

WHOLE OF OUR LIFE WE GO BY THE POPULIST CLASSIFICATIONS OF WHAT’S AN ASSET AND LIABILITY, BUT FROM AGES ‘RICHES’ HAVE DEFINED IT DIFFERENTLY AND THAT’S WHAT HAS MADE ALL THE DIFFERENCE BETWEEN THEM AND US.

Accounts define assets as things we own (cash, house, car, etc.), and liabilities as things we owe (our obligations, like mortgages, dues, etc.). Old wisdom is in consonance with this idea. Earlier people believed that owning a house is life’s biggest asset, and what’s better if you own a car; it’s like an icing on the cake. But it’s important to understand that old rules have limitations and applying them blindly will only screw our finances.

WHAT TURNS MONEY INTO MORE MONEY