Assets vs Liabilities

On the road to conquering yourself you need to take stock of your life and the value of things you place importance on. One way to do this is to make an asset and liability chart for your life. This is a commonly used practice among business circles. However it can benefit your life in ways outside of money matters. In the financial world an asset represents ownership of value that can be turned into money at will. A liability is a current obligation of an entity arising from past transactions or events. Things in life generally fall into these two categories. A skill set or a talent can be considered an asset whereas negative friends or habits can be a liability. Composing this list can be tricky because people mistakes drawing a clear line between the two and some things can fall into both categories. Take a house for instance. It is an asset if it is owned outright but it is a liability until it’s paid off because it’s taking money from your pocket instead of putting money in it. The same can be said about credit cards, education, cars etc. I use this chart often when evaluating which things can stay and need to go in my life.

chart

As you can see almost everything in life falls into one of these categories. By doing this self evaluation it will demonstrate your attributes and shortcomings as clear as day. On a separate piece of paper write the columns like I did. Assets on one side, Liablities on the other. If there are more negative things about a situation than positive, you need to let it go. Life is too short to have a whole bunch of liabilities weighing you down and holding you back. King on.

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