Understanding the difference in assets and liabilities can go a long way. It’s really quite simple.
Liabilities take money out of your pocket.
Assets put money in your pocket.
Examples of liabilities are anything that burns fuel. Cars, boats, motorcycles, or anything with a motor. Houses are your liability, they are the bank’s asset. The only time a house is an asset for you is that day you get the check from the sale of it or that equity loan. Other than that, it’s a liability.
Examples of assets are income property, businesses that are making money, and perhaps the biggest asset that anyone has, themselves. No kidding, you are your biggest asset if you don’t live beyond your means. Invest in yourself with a comprehensive financial plan. Stop consuming your dollars and start putting those hard earned dollars away, instead of buying more fuel for that gas guzzler you really don’t need. We all have to make sacrifices, do you really need to keep up with the Jone’s? No. I know I don’t.
Consult with a competent financial adviser as soon as you can. Especially now with the markets as low as they are. It’s a great opportunity to get started on the path to a comfortable retirement.