Assets And Liabilities

Knowledge Stepping

Today’s Business Basics brings us to a fundamental concept in the world of money, which are assets and liabilities. If you’ve read Robert Kiyosaki’s book Rich Dad, Poor Dad, then you will also be more or less familiar with these terms.

Assets are objects that are worth any amount of cash value if made into cash (liquidation is the proper term). On the other end, liabilities are objects that have a negative cash value and start taking away from your current money supply the longer they are held on to. Assets and liabilities are often investments you make in your life, and the accumulation of one or the other will determine your financial wealth at the end of the day.

Assets may be worth more than their cash value, and may also bring in money occasionally as well (ie. stocks, businesses). The same is true with liabilities, as they…

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