Page 13 - Intelligent Investing (3)

Assets vs Liabilities

These 2 words often get mixed up by people that don’t know their definitions

An Asset brings money in to your account

A Liability takes money out your account

What is a asset to some may be a liability to others

For example, a house if not owned or rented is liability to the owner but an asset to

the bank that issued the loan and will collect the house if you miss payments.

Ownership and Control are key