Assets Vs Lliabilities
Your assets and liabilities:
The
amount of assets—items of value—you hold, is a precise indicator of your
current and future financial position.
Assets
tend to add to your income (either now or in future) example investments—in gold / silver, fixed deposits,
stocks, mutual funds, art / antique, house, land etc. Or they help reduce
expenses, as in case of owning a house—it saves you income taxes and rent.
Thus,
assets help to strengthen your financial position.
On
the other hand, liabilities weaken your financial position.
Debt—something
that you owe is a liability.
And
so is an old vehicle that needs a lot of fuel and repairs, for the work it is
doing.
More
assets and lesser liabilities would help you better your financial position and
strengthen your money.
Thanks to RBI
