Is your house an ASSET or a LIABILITY?

Many people get confused about what is the definition of an asset and a liability. 

In simple terms that we all can remember … 

An ASSET is something that puts money in your pocket.

A LIABILITY is something that takes money out of your pocket.

It’s easy to get these two things confused. The poor and middle class think that a lot of their possessions are assets when they are really their liabilities. 

Owning a house is a perfect example. Is your house an asset or liability? The majority of us would likely say that it is our biggest asset we own. 

Asset – money in your pocket 

Liability – money out of your pocket 

Your house is actually one of your biggest liabilities (even with no mortgage). It is something that constantly takes money out of your pockets with expenses, utilities, taxes, repairs, etc. It only becomes an asset when you sell it or when it becomes a rental property and cash starts to flow into your pocket. 

In order to pursue wealth, we want to focus on buying ASSETS…. things that put money into our pockets. 

Ask yourself today… How many things do I own that put money into my pocket? 

Kind Regards,

John C. Heeney, CEO Glenroe Lending

Glenroe Farms Limited ( Private Lending )

We build LEGACY to create TRANQUILITY

john@glenroelending.ca

519 808 7370