In today’s world, the little income that comes from the 9 to 5 jobs is no longer enough to survive all that comes in one’s way. Inflation, expenses, taxes…How can an individual pay all that with a $2000 salary and still save money for a better future?
This explains why people are starting to wake up and buy assets to earn more money and have an additional source of income.
But the question is, can really what they’re buying be considered as an asset? Or is it a liability instead? What is the difference between an asset and a liability in the first place? And how to turn a liability into an asset?
In this article, I am going to answer all these questions, but let’s start first with some terms in the financial education world.
Financial statements are written records that convey the financial activities of a company.
The 4 primary financial statements are:
- Balance Sheet: It is a financial statement that reports a company’s assets, liabilities, and shareholder equity.
- Income Statement: The income statement focuses on the revenue, expenses, gains, and losses of a company during a particular period.
