The Difference between an Asset and a Liability

Many people today get confused when it comes to understanding what the difference is between an asset and a liability.

Simply put …

An asset is something that puts money INTO your pocket.

A liability is something that takes money OUT OF your pocket.

It’s important to learn this at an early age. The younger you are the more important it is to understand this difference. When you focus on buying income-producing assets at a young age you are setting yourself up for retiring early and enjoying a wealthy lifestyle.

When we focus on purchasing income-producing assets this will generate more than enough money to cover expenses so that the balance of cash can be used to purchase more income-producing assets. The asset column continues to grow and the income that generates grows with it. The result is that the rich get richer.

Again, the sooner we understand the difference between asset versus a liability the richer we become.

Feel free to reach out to me if this concept is something you struggle with. I would be more than happy to chat with you regarding this.

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