assets and liabilties

first lets just KISS: keep it simple stupid

my definition of an asset is: to put money in you pocket.
my definition of a liability is: to take money back out your pocket.

why do people always get the two mixed up?

what are your assets and your liabilities?

An example of an asset is money in your savings account. An example of a liability is the mortgage on your house.

I don't understand what you're asking with this post?

Asset = Something you have that has a monetary value.
Liability = A debt.
Thats the way i understand it.

Quoting It's Jackie!:“ An example of an asset is money in your savings account. An example of a liability is the mortgage or your house. I don't understand what you're asking with this post?”

why do people always get it mixed up? they always think its the opposite it may be a dumb question, but i just felt like asking it.

Quoting ~*Vicky Lynn*~:“ Asset = Something you have that has a monetary value. Liability = A debt. Thats the way i understand it.”

thats why i always say a house is nothing but a huge liability. people think that a damn asset.'' my house is my greatest asset that i have'' lmao

Quoting Majesty Est.2007:“ thats why i always say a house is nothing but a huge liability. people think that a damn asset.'' my house is my greatest asset that i have'' lmao”

The equity on your house is an asset. It's the mortgage that is a liability. Houses tend to appreciate in value over the years. The market is in a slump right now but it will go back up eventually.

Quoting Majesty Est.2007:“ why do people always get it mixed up? they always think its the opposite it may be a dumb question, but i just felt like asking it.”

Those people are morons. I've never heard of anyone mixing it up before.  

Quoting It's Jackie!:“ The equity on your house is an asset. It's the mortgage that is a liability. Houses tend to appreciate in value over the years. The market is in a slump right now but it will go back up eventually.”

and how long will it take for the value to go up before you actually decide to give up your home because your mortgage payments are to high? thats why i called it a liability.

Quoting Majesty Est.2007:“ and how long will it take for the value to go up before you actually decide to give up your home because your mortgage payments are to high? thats why i called it a liability.”

This may not be technical, But to me its a liability until its paid off, then its an asset.

Quoting Majesty Est.2007:“ and how long will it take for the value to go up before you actually decide to give up your home because your mortgage payments are to high? thats why i called it a liability.”

People bought houses they couldn't afford and the property taxes and insurance rates are going up so that's why so many people are in foreclosure now. There also was a lot of fraud going on with mortgage companies to get borrowers approved that didn't qualify.

But none of that changes the fact that owning a house is an asset in the long run.If you are upside down right now it's a liability right now. But still in the long run it's an asset.

Quoting Majesty Est.2007:“ thats why i always say a house is nothing but a huge liability. people think that a damn asset.'' my house is my greatest asset that i have'' lmao”

A house IS a huge asset.

USUALLY you owe money on the house ...but you also once you have been paying on the house for long enough...have a large amount of equity built up .

Also...if the property value where you live skyrockets...and say you pay 100 grand for a house that is NOW worth 400 grand...you essentiall are 300 grand richer.

See?
Asset.

Quoting Satan:“ A house IS a huge asset. USUALLY you owe money on the house ...but you also once you have been paying ... [snip!] ... say you pay 100 grand for a house that is NOW worth 400 grand...you essentiall are 300 grand richer. See? Asset.”

oh okay.

Quoting Satan:“ A house IS a huge asset. USUALLY you owe money on the house ...but you also once you have been paying ... [snip!] ... say you pay 100 grand for a house that is NOW worth 400 grand...you essentiall are 300 grand richer. See? Asset.”

Thanks. You explained it better than I did. I'm not very good with words. I'm a math geek. LOL I'm really good with numbers.