What’s the difference between an asset and a liability? Assets An asset is something you own that has value or can be sold to make money. It's a resource that can provide a future economic benefit. Think of assets as things that help you grow your wealth. Some examples of assets are: * A house that you own (because you can sell it for money) * Money in your bank account * Investments like stocks or bonds * A car you own outright (though it usually loses value over time, it still has a sale value) Liabilities A liability is something you owe to someone else. It's a debt or a financial obligation that you have to pay back. Liabilities take money away from you. Some examples of liabilities are: * A mortgage on a house (the loan you have to pay back) * A car loan * Credit card debt * A student loan Think of it this way: if you use a loan (a liability) to buy a house, the house is your asset, but the loan you have to pay back is your liability. The goal is to have more assets than li...