Asset vs Liability

The main difference between assets and liabilities is that assets provide a future economic benefit, while liabilities present a future obligation. An indicator of a successful business is one that has a high proportion of assets to liabilities.

We can Say it by that above technical term derived from google. But I really wanna convey this by a little Story. So Steemians will love it. Ok Let me say,

Son: Dad, may I speak with you?
Dad: Go ahead.
Son: Among all my classmates, I am the only one without a car. It is embarrassing.
Dad: What do you want me to do?
Son: I need a car. I don't want to feel odd.
Dad: Do you have a particular car in mind?
Son: Yes dad (smiling)
Dad: How much?
Son: Rs 500000(INR)
Dad: I will give you the money on one condition.
Son: What is the condition?
Dad: You will not use the money to buy a car but invest it. If you make enough profit from the investment, you can go ahead and buy the car.
Son: Deal.

Then, the father gave him a cheque of Rs 500000(INR). The son cashed the cheque and invested it in obedience to the verbal agreement that he had with his father.

Some months later, the father asked the son how he was faring. The son responded that his business was improving. The father left him.

After some months again, the father asked him about his business
again and the son told him that he is making a lot of profit from the business.

When it was exactly a year after he gave him the money, the father asked him to show him how far the business has gone. The son readily agreed and the following discussion took place:

Dad: From this, I can see that you have made a lot of money.
Son: _Yes dad. _
Dad: Do you still remember our agreement?
Son: Yes
Dad: What is it?
Son: We agreed that I should invest the money and buy the car from the profit.
Dad: Why have you not bought a car?
Son: I don't need the car again. I want to invest more.
Dad: Good. You have learned the lessons that I wanted to teach you.

One, You didn't really need the car, you just wanted to feel among. That would have placed extra financial obligations on you. It wasn't an asset then, but a liability.
Two, it is very important for you to invest in your future before living like a king.

Son: Thanks, dad.

Then the father gave him the keys to the latest model of that car.

MORALS:

1. Always invest first before you start living the way you want.

2. What you see as a need now may become a want if you can take a little time to get over your feelings.

3. Try to be able to distinguish between an asset and a liability so that what you see as an asset today will not become a liability to you tomorrow.

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✽ Identify yourself
✽ Build yourself
✽ Be yourself...

Hope our Steemians love it...✌

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