The Basics: Assets vs Liabilities
In this week’s episode of MWPF, it’s the basics of identifying the assets vs liabilities and investments. Is that house, car and jewelry an investment or an asset? There’s usually a lot of discussion here and a large part is due to the sometimes changing status of things we buy or consider ourselves investing in, for example something that may start as a liability because of costs attached to maintain it, may turn out to become an asset at some time or another. Most controversial of all, are the intangibles such as relationships, knowledge, skill, education and even social status in regards to whether they are assets or even investments. Do you invest in your social status or intimate relationships? Are your relationships liabilities that cost you to maintain them and keep up appearances. On the landscape of Assets vs. Liabilities there’s much more than just your house.