Updated: Sep 18
What is the difference between an asset or a liability? The short answer is an asset puts money in your pocket while a liability will take money out. Learning this difference early in life could save you millions.
Liability (credit cards if used in appropriately)
Using available resources to build wealth is strategic. Certain assets can create resources to draw from. A business can generate cash flow, purchase equipment that generates income, and plan for expected accounts receivables on services provided. Liabilities are usually mortgages or debt owed on the business or asset. The key to financial freedom is to build a portfolio of assets to generate consistent revenue. Money should work for us, not us working for money. Make this adjustment and change your world.