While living our daily lives we really don’t know what in them are considered assets, and what are considered liabilities. The best way to figure that out is to know what an “asset” or “liability” mean and what each can be, in association to your life.
An “Asset” is considered an item you own that can provide a future economic benefit (ex. a house, car, checking account, etc.). In other words, what you have that can put money in your pocket later.
A “Liability” is an item you don’t own but are paying someone else for (ex. an apartment, a leased car, credit card, etc.). In other words, what you have that is taking money out of your pocket now and later.
How many of you are now thinking to yourselves that you are living your life full of liabilities and close to none, or no assets?
Now that we have made you aware of the differences and how to identify them, the most important step is to take inventory and their worth. Then and only then you can start to make an action plan, to start filling in your asset box!