Etini
Valued Contributor
As far as finance is concerned, assets and liabilities are two major concepts. An asset is anything that you own that brings money to you. Examples are real estate, stocks, bonds etc. A liability is anything that you own that takes money from you. Examples are credit cards, loans etc.
In life, we chase so many things and some of the things we chase are more of liabilities than assets. Without doing the maths, we all know what the common choice of pursuit should be if financial wellness is the goal. In this post, I would highlight why as a financially rationale person, you should focus on chasing assets rather than liabilities.
The first financial reason you should acquire more assets than liabilities is that assets can help you build wealth. Simply because they bring money to you, they can cumulatively help you to build wealth over time. Liabilities would rather decrease your potential to make wealth. If you have numerous loans, there is no way you can be wealthy.
Secondly, assets give you financial security in case of the occurrence of an eventuality. Emergencies happen all the time and assets can be sold to alleviate the burden of these unfortunate situations. A liability on the other hand places more burden even in the midst of financial crisis.
Lastly, assets are used as security to get financial assistance. Imagine if you need money for a project, you can put your asset down as security to get that financial boost.
It is proper to start acquiring as much assets as possible if we want to grow our financial lives at a a fast pace.
In life, we chase so many things and some of the things we chase are more of liabilities than assets. Without doing the maths, we all know what the common choice of pursuit should be if financial wellness is the goal. In this post, I would highlight why as a financially rationale person, you should focus on chasing assets rather than liabilities.
The first financial reason you should acquire more assets than liabilities is that assets can help you build wealth. Simply because they bring money to you, they can cumulatively help you to build wealth over time. Liabilities would rather decrease your potential to make wealth. If you have numerous loans, there is no way you can be wealthy.
Secondly, assets give you financial security in case of the occurrence of an eventuality. Emergencies happen all the time and assets can be sold to alleviate the burden of these unfortunate situations. A liability on the other hand places more burden even in the midst of financial crisis.
Lastly, assets are used as security to get financial assistance. Imagine if you need money for a project, you can put your asset down as security to get that financial boost.
It is proper to start acquiring as much assets as possible if we want to grow our financial lives at a a fast pace.
