Learn About Assets Vs Liabilities and How They are so Important
Disclaimer
Welcome everyone to Yeeerrr.com where I’m going to only be sharing with you all from my life experiences. The goal is that you may learn something new or benefit from all of my mistakes that I have made along the way. I would also like for you all to be able to learn from all of the good decisions I made as well. Keep in mind my friends that what works for some may not work for others at times. On Yeeerrr.com we will always encourage everyone to do your own research as well as speak with a professional on the subject. Understand that it is too be beneficial for helping you reach your goals. If you find yourself seeking for more information on our terms, please go right to our terms and conditions page along with the privacy policy page as well my friends, it’s right there for you!
ASSETS
One thing I’ve learned to do with my money was to spend it on ASSETS. The definition of an asset is a useful or valuable thing, person, or quality. I had a cheap friend, anytime when we were out shopping. He would just window shop and every once in a while, he’ll buy something. One day we were in a shoe department store, and I was buying some shoes to wear. I asked my friend if he was going to grab anything? He said, “them shoe not an asset or a need, these shoes on my feet are fine”. So, I laughed it off thinking he just being cheap like always. After I purchase the shoes, some fire might I add. I turn to my friend and say, brother you have to treat yourself some time one day soon. He says, “you too”. I hold up the bags of shoes and ask him. What do you call this? He says “a liabilities “. Later that day I went home and had to look up what an asset was. What do you know he was right.
From that day I always asked myself if something I was buying was an asset or not. Now an asset can be all kinds of things. Really depends on what field you’re in. For example, if you own a bar. Some of the asset you might own will be your staff, the furniture, business car, a mechanical bull, pool table, dart boards, and kitchen equipment. All these things making you money are the assets.
If you’re an Uber driver, your car is an asset. You got a YouTube channel, that’s one more. You a rapper and you own your own studio equipment; it’s all considered assets.
If you still have questions about what an asset might be I have three properties of an asset. Ownership, economic value, and resource. If it possesses these three things, it’s definitely an asset. My favorite asset is cash by the way.
Like I said assets will depend on what field you’re in. You want to have as many assets as possible. Don’t be afraid to treat yourself especially when you earned it. In the words of Mr. Benny, “treat yourself because won’t nobody treat you like you treat yourself”.
Liability
I gave you the gems on having assets. Now, let me give you the other side of assets, Liability. The definition of liability is the state of being responsible for something especially by law. A person’s liability or organization is anything they owe money on, for a better understanding. One thing my dad taught me was to never deal in debt. I remember one day we were driving somewhere I can’t remember where we we’re headed. Anyway, the conversation turns on depending on people. He was telling me in life to try and not depend on people not even him. He said, “men will always let you down”. He also said, “not to owe a man nothing, try not to deal in debt. By that I mean, take this car we driving in. It’s mine, I own it, can’t nobody take it from me unless, I’m in trouble with the law. If I was making payments on this car, and missed a few payments they can come take. I’ll never have a car note because I don’t know where I will be three years from now. I might get laid off from work, you just never know. If I got put out my house I can stay in my car and still be able to move around, get back and forth to work”. That was one of my favorite conversations we ever had and the one I feel stuck with me the most.
Now there are three types of liabilities. Current, non-current, and contingent liabilities are the three. Let’s go through these three. Current liabilities are a company’s short-term financial obligations that are due within one year or within normal operating cycle. An example of this is income taxes owed.Non-current liabilities include debentures, long term loans, bonds payable,deferred tax liabilities, long term lease obligations, and pension benefits obligations. A contingent liability is a potential liability that may occur in the future. An example of this is a pending lawsuit.
I know for most people their liabilities will be student loans, personal loan, and credit cards. You have to take the good with the bad. With some research you can use some of these things in your favorite. Some of these things you can get around unless you have money. Where there’s a will there’s a way.
