Assets vs Liabilities: What's the Difference?

Assets and liabilities are two important concepts in personal finance. Assets are anything that has value and can be converted into cash, while liabilities are debts that you owe. It's important to understand the difference between assets and liabilities in order to manage your finances effectively.

Examples of assets include:

• Cash
• Savings accounts
• Checking accounts
• Investments (stocks, bonds, mutual funds, etc.)
• Real estate
• Vehicles
• Personal belongings

Examples of liabilities include:

• Credit card debt
• Student loans
• Personal loans
• Mortgages
• Car loans
• Medical bills

Your net worth is your total assets minus your total liabilities. A positive net worth means that you have more assets than liabilities, while a negative net worth means that you have more liabilities than assets.

It's important to strive to have a positive net worth. This will give you financial security and make it easier to achieve your financial goals.