The Difference Between an Asset and a Liability
The Difference Between an Asset and a Liability
In order to be more successful, it is important to understand and apply the distinction between assets and liabilities.
The concepts of asset and liability apply in many situations.
- Some properties are assets and others are liabilities.
- Some people can be assets; others are liabilities.
- Some habits are assets and others are liabilities.
Property: An Asset or a Liability
A piece of property is an asset only if it generates a net income and / or gains value over time.
For example: If a landlord owns a house and he lets it out in exchange for rent, then the house is an asset to the landlord, because it generates an income. And the house itself gains value over time.
But, if the same landlord owns a car, then the car is a liability, because the car costs money to keep on the road, and it is decreasing in value every month.
- Cars tend to lose value over time, and cost money every month to run, so they are a liability.
- Rental houses tend to gain value over time, and earn money every month so they are an asset.
If you are thinking about financial matters, the goal in life is to minimise your liabilities and maximise your assets.
Now let us apply that to other areas of life.
Minimise liabilities and maximise assets.
Some people are assets; others are liabilities.
- Some people tend to add value to your day. They make life easier, better and more productive.
- Other people detract value from your day: they make your life, harder, worse and less productive.
Some people give more than they take. These people are assets.
Other people take more than they give. These are liabilities.
Do you have anyone in your life who takes a lot, but does not give much in return?
If yes, ask yourself, is this person more of a liability than an asset?
You and your life systems cannot afford to carry too many liabilities.
Some of your habits are assets and others are liabilities.
We are all creatures of habit.
- Some habits make us better. They are assets.
- Other habits are liabilities. They make us worse.
Do you have any habits that are a liability to you?
Seek-out and destroy any bad habits that might make you a liability to yourself or others.
Destroy any elements of laziness, neglect or spite that might be lurking in the shadowy corners of your character.
Maximise any habits that are an asset to you.
Do you have any virtuous habits that make you a real asset to others? Are you hardworking, honest and cooperative? Let the rest of the world feel the benefits of your assets.
Maximise your assets.
Minimise your liabilities.
Quiz: How Good Are Your Work Habits
Why not try our quick quiz to discover how good your work habits are?
Personal Development Training
In order to improve your performance, you may need to develop your personal and professional skills: meaning: skills of communication, planning, prioritisation, motivation and personal confidence. If you want to learn more, then click here for personal development training.
About the Author: Chris Farmer
Chris Farmer is the founder of the Corporate Coach Group and has many years’ experience in training leaders and managers, in both the public and private sectors, to achieve their organisational goals, especially during tough economic times. He is also well aware of the disciplines and problems associated with running a business.
Over the years, Chris has designed and delivered thousands of training programmes and has coached and motivated many management teams, groups and individuals. His training programmes are both structured and clear, designed to help delegates organise their thinking and, wherever necessary, to improve their techniques and skills.
Blogs by Email
Do you want to receive an email whenever we post a new blog? The blogs contain article 5-10 minutes long - ideal for reading during your coffee break!
Further Reading in Personal Effectiveness
-
Habit Pattern v Thought Process
We all develop habits. Habits tend to eliminate the need for conscious thought. Which is fine, if all our habits were GOOD habits, but unfortunately they are not all good.
Read Article > -
How to Respond to a Negative Situation
Many people do not respond well to negative feedback, feeling that it is personal criticism. Sometimes feedback may turn to conflict, which in turn can lead to anger and upset. Take a look at our guide as to how to handle these negative situations.
Read Article > -
Emotional Intelligence
Emotional intelligence is the ability to empathise, or understand and appreciate how another person feels, given their context. Learn how to develop your emotional intelligence.
Read Article > -
What is Impression Management?
Impression management is the art of presenting yourself in a positive way. First impressions do count, especially in interviews and business situations. Learn the art of leaving good impressions wherever you go.
Read Article > -
How to make the most of your journey to work
Commuting to work can be tedious and mind-numbingly boring. So, we have put together some suggestions on how you can make the most of your down time stuck in traffic, or waiting for the train. Use your down time to improve yourself.
Read Article >
Looking for Personal Development Training?
If you're looking to develop your Personal Effectiveness Skills, you may find this Personal Development Training Course beneficial:
Open Training Course Pricing and Availability
Next Open Course Starts in 7 days, Online - Teams, places available