Prior to coming to college I was never taught financial literacy. Everything changed once I took a financial literacy course during my freshman year in college! It created a hunger for me to learn more about financial terms and there meanings. Even though most of these concepts seem simple, I feel that it is important to get this information out there for people who were in my position! I will be posting Financial Literacy content weekly (along with sources that I use to access this information), I hope it serves you well! (Let me know in the comments what concepts you want me to touch on!)
Assets and Liabilities are very important concepts of financial literacy. Knowing the difference between the two can be the difference in living check to check or living with financial freedom!
Assets: generate cash inflow over the years (anything that puts money into your pockets are deemed assets)
Examples of Assets:
Liabilities: generate cash outflow over the years (anything that takes money out of your pockets with no chance of a return are deemed liabilities)
Examples of Liabilities:
Credit Card Debt
We should all focus on building wealth through our assets! In order to do that we have to minimize our liabilities!
For more information on assets and liabilities, I would suggest reading Rich Dad, Poor Dad by Robert Kiyosaki; this book goes into great detail on how to use these two concepts to your advantage! (Sidenote: reading makes you better!!)