THE SIMPLE MONEY LESSON THAT FINALLY MADE SENSE TO ME 💸
A few years back, I used to think earning more money was the whole game. But one small conversation changed everything.
I was with a friend who seemed very calm about his finances. No big salary difference, no fancy lifestyle. Just peaceful. I asked him, “Bro, what’s your secret?” He smiled and said something I’ll never forget:
“It’s not about how much you earn. It’s about what grows, and what drains.”
That was the first time I really understood the difference between an asset and a liability.
WHAT IS AN ASSET?
An asset is something that makes your life easier tomorrow than it is today. It either grows in value, saves you from future stress, or helps you earn.
Examples that made sense to me:
- A small mutual fund
- A camera or laptop you actually use to create
- Skills you invest time in
- A savings habit
- A course that improves your abilities
An asset is like a quiet friend who helps you move forward.
WHAT IS A LIABILITY?
A liability takes something from you, usually money, but also peace of mind.
Examples:
- Credit card interest piling up
- EMIs for things you don’t use
- A car or gadget bought on impulse
- Subscriptions you forgot about
A liability is like a leak in your bucket. Even if you pour more water (income), it never fills fully.
DAILY-LIFE EXAMPLES
When I wrote my own list, this is what it looked like:
My Assets:
- My laptop (because it helps me create work)
- My emergency savings
- A course that improved my skills
- My writing and content-making habit
My Liabilities:
- Old credit card payments
- Random subscriptions
- A gadget I bought and never used
It was uncomfortable to see the truth on paper, but freeing.
WHY ASSETS GROW IN VALUE
Assets help your future self. They grow on their own, give new opportunities, and reduce stress. They quietly make your life better over time.
WHY LIABILITIES DRAIN YOU
Liabilities don’t just drain money. They drain mental energy. Every EMI, every interest payment, every overdue reminder eats away at your peace. When liabilities increase, stress increases too.
SIMPLE SUMMARY
Asset: Helps you grow, earn, or stay secure
Liability: Drains money or energy
Goal: Increase assets, reduce liabilities
FINAL THOUGHTS
I’m not an expert, just someone who got tired of feeling stuck. Understanding this difference made my financial life feel lighter.
You don’t need to change everything. Just ask one question:
Will this help me later or drain me later?
That one question can save years of stress.
Share this with that one friend who keeps complaining about money but never does anything about it 😉
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