Asset or Liability?

In this fast moving world, you often find yourself buying things or find yourself lured in to buying things that will depreciate. Soon enough, you find yourself in a rat race, and become almost cashless at the end of the month.

Some people say that they are asset rich, and cash poor. But are your assets really assets? For example, i will not say that a car is an asset when with or without a car you are earning the same amount every month. But a commercial vehicle that helps you to increase in the revenue is an asset. Some people say my property (eg. bungalow) is an asset. But a house might not provide you with the liquidity when you need the cash. As it is hard to sometime find a buyer that will accept the price that you are offering. In this world is all about balance. Doing too much or something will cause a bad effect. Balance the liquidity of your performing assets, and keep at least 6 months salary as emergency fund/slush fund.

Lastly, for people that are starting out, as many successful people are saying, buy into assets not liabilities.