An asset is anything that produces or increases in value: inventory, intellectual property (IP), cash, or investment instruments just to name a few. 

A liability put simply, is anything you owe: mortgages, rent, loan payments on equipment.

The gentlemen at Earn Your Leisure had a masterful campaign to illustrate which is more desirable – assets over liabilities.

But the ratio is a delicate balance that is not always in harmony-especially in the early stages of growth.

A tech company like Google will incur massive debt (liabilities) before it achieves profitability (cash assets or valuable IP).

In contrast, Shonda Rhimes’ Shondaland has huge cash and IP value (Bridgerton, Scandal, Grey’s Anatomy) and little liabilities (office space, salaries).

The goal is to grow the asset side greater than the liability side of the balance sheet.

-Monk

We spend 12 – 20 years in school learning about every subject, except for money. Then we spend the rest of our lives trying to figure out how to make money or how to grow the money we have.

My approach to financial literacy is to teach it in a way that makes the complexities of finance so simple that your investing actions become instinctive. 

To the youth, young adults, and the mothers who raise them,  Financial Literacy: Monk Says… Learn the Game

www.MonkSays.com

#assetsOverLiabilities #profitability #intellectualProperty #earnYourLeisure