The difference between an asset and a liability

The difference between an asset and a liability

assetRecently, I went to a conference which took place at the Hilton Hotel for a seminar for women who want to be wealthy, and learnt a valuable lesson.

These two words – Asset and Liability – are twin brothers but are complete opposites. From looking up these two words in the dictionary I found out what they mean and it will help you to understand what I understood.

An Asset is ‘a useful and desirable thing or quality;’ or ‘a single item of ownership having exchange value’.   So, in other words an item(s) which bring you profit. Assets are things that you possess which increase in value; that is, property, land, stocks, shares, businesses, etc.

Whereas, a Liability, is completely the opposite! The dictionary says that it means ‘Opposed to assets’. These items decrease in value after you buy them – they do not bring you profit.  In fact, they leave you out-of-pocket or even penniless. An example of liabilities is things like mobile phones, laptops, TVs, cars, etc.

Why did I feel the need to speak about this?

So many of us, youths, want to stay in fashion, with getting the latest iPhone, the Gucci belt, the LV bag or the MK watch.  Shopping and dressing from head to toe in designer labels with the student loan, and starve until the next student loan is received, only to do the same thing all over again. Some students do this and don’t pay their rent.

Why do we act so (forgive me for saying) dumb, when we know – more often than not – that the celebrities who are wearing these designer labels do not have to pay for them?

Sit back and contemplate this question!  If you were to take stock of the items in your bedroom right now, how many of them can you say are assets?

Think about it.

Would you like to talk to someone about it? Email holla@victoryyouthgroup.co.uk

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