The difference between
Assets and Liabilities
Building Wealth Through Financial Literacy
By The Wealth Building Team
Sunday, February 4, 2024
Objectives
- Learn what Wealth Building is
- Define what an asset is
- Provide examples of assets
- Define what a liability is
- Provide examples of liabilities
The difference between
Assets and Liabilities
Building Wealth Through Financial Literacy
By The Wealth Building Team
Sunday, February 4, 2024
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Objectives
- Learn what Wealth Building is
- Define what an asset is
- Provide examples of assets
- Define what a liability is
- Provide examples of liabilities
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Wealth Building, founded amidst the challenges of 2021, is a financial institution dedicated to revolutionizing the way individuals approach their financial well-being. Our mission is to empower people of all income levels with the tools and opportunities needed to build lasting financial freedom
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Key Offerings
At Wealth Building, we prioritize inclusivity, innovation, and expert advice to help our members build generational wealth.
- Savings Plan: We offer easy to understand and impactful savings plans that help you build wealth over time
- Short & Long Term Loans: Providing a financial boost to those in need, catering to occasional expenses.
- Free Credit Counseling: We provide you with expert guidance on managing your credit, debt management strategies, and financial education that will help you build a strong financial foundation.
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What is an Asset?
Assets are resources or valuable possessions owned by an individual or organization.
Characteristics
- Assets contribute to the overall wealth and financial health of an entity.
- They can be tangible (physical items) or intangible (non-physical items).
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Example of Assets
- Real Estate
- Property, land, or buildings owned by an individual or organization.
- Investments
- Financial instruments such as stocks, bonds, mutual funds, or retirement accounts.
- Stocks
- Ownership shares in publicly traded companies, providing a stake in the company’s success.
- Bonds
- Fixed-income securities representing a loan made by an investor to a borrower, typically a government or corporation.
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What is a Liability?
Liabilities are financial obligations or debts that an individual or organization owes to external parties.
Characteristic
- Liabilities represent claims on an entity’s assets and require future economic sacrifices.
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Example of Liabilities
- Mortgages
- Loans secured by the value of a property, with the property serving as collateral.
- Loans
- Borrowed funds that come with terms for repayment, including interest.
- Credit Card Debt
- Outstanding balances on credit cards, often subject to high-interest rates.
- Utility Bills
- Monthly obligations for essential services like electricity, water, and gas.
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Thank You!
We hope you found this information helpful. If you have any questions or need further assistance, please don't hesitate to reach out to us.
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