Asset vs Liability

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:$2000

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 $2000.
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 | 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 | should invest the
money and buy the car from the profit.

Dad: Why have you not bought the car?

Son: | don't need the car again. | want to
invest more.

Dad: Good. You have learnt the lessons that I
wanted to teach you.

• 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 of 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.