Assets And Liabilities

A liability takes money out of your pocket.

An asset increases the value of your money.

The cash flow patterns of poor, middle-class, and rich people differ based on their assets and liabilities.

Income Sheet:

Income: Money earned from various sources.

Expenses: Money spent on living costs and other necessities.

Balance Sheet:

Assets: Items that increase in value or generate income.

Liabilities: Items that decrease in value or incur costs.