How To Differentiate Between Asset and Liabilities

[Spencer]

Knowing how to differentiate between an asset and a liability is very important if you want to take control of your personal finances in this post we will be discussing on the front ways you can help yourself buy differentiating what is an asset or a liability.

1st of all an asset is anything that brings an income to you so it could be a business, a real estate or equipment, we which can eventually pay for itself as Time goes On,, s a liability on the other hand as anything that takes away money or the time from you with out any tangible returns, so look at your life extensively and see how you can differentiate between the two I learn to prioritize assets over liabilities.

 

[Mika]

If you want to improve your finance, get our of debt, start building wealth, you need to understand what asset is and what libality is, you need to understand how to build asset and how to avoid liability. Asset is something you own, something that have value and you can get the value by selling it off or it generates value on its own. Liabilities is something that needs to be paid off, something that you do not own but are indebted to pay off.