HOW TO ASSESS YOUR PURCHASES? ADOPTING A BUSINESS PERSPECTIVE

Moving on, now I shall bring together, necessities and liabilities together so that it makes sense from a business perspective.

Now that you understand what an asset is and what is a necessity, let’s explore liabilities. Say you own a great car that is serving you well. Now if you decide to purchase another, I would say that you are taking on a liability. While a liability takes money out of your coffers, it does absolutely nothing to improve your present or future prospects. In some cases, i...