Hello Hive

An asset is a useful or valuable thing that can generate income or a source of living for individuals
While a liabilith is quite an opposite and cause us to spend more.
Knowing the difference between asset and liability will help you save more money, knowing fully well that alot of people are after building their finances rather than breaking them down.

Most times our liabilities are just temporary wants that appears as needs, for instance an undergraduate in a university feeling pressured to buy a car since most of his friends drives cars to school. Been desperately in need and wanting to feel this sense of belonging, He goes ahead to buy a car with his savings and continually uses part of the money to fuel his car until graduation. He might have lived the lifestyle he wanted at that time but now he is a graduate with no job or savings to startup a business for himself
If only He had endured and graduated school without a car, he might probably have grown some amount of money to startup something for himself.

A time might come in between these two such that what seemed like a liability in the past is now an asset for the present.
After becoming a graduate with a entrepreneurial job, our dear friend above might now need a car to delivery his goods and services.
In this case, having a car is worth it since it is an asset used conveniently to generate income for himself.

It is a necessity for us to weigh every item at every particular time to determine if we truly need them or not. Been in possession of any form of needs, liability material at a particular time has a direct impact on our finances knowing fully well that regardless of how much is in your possession, a liability material is capable of breaking into your saving if not spending all the monies kept from hard labour.