On our previous discussions, we talked on the importance of financial education especially with respect to your mind. Having established that, we can now go into specific definitions that you should be acquainted with early in this journey.
Today, we will talk assets and liabilities.
Good planning and hard work lead to prosperity, but hasty shortcuts lead to poverty.
https://bible.com/bible/116/pro.21.5.NLT
Assets and liabilities are popular words that we all use when talking about money and investing but what do they really mean?
An Asset is something or someone that puts money into your hands.
-Your mind
-Skills
-Your job or business/investment
On the other hand, a liability is something or someone that takes money out of your hands.
-Your mind
-Your car
-Your residence
There are many more for both categories. This also varies per individual or organization, depending on their financial intelligence.
You would observe your mind is an asset and can be a liability.
The goal should be to have more assets than liabilities.
So, what are your assets and what are your liabilities?
As published 20/03/2023