Financial management requires that you identify and organize your balance sheet. It can be divided into two categories: assets and liabilities. Assets are the items you own that can provide future economic benefit. Liabilities are what you owe to other parties. Basically, assets put money in your pocket, and liabilities take money out!
Examples of assets are –
- Cash
- Investments
- Inventory
- Office equipment
- Machinery
- Real estate
- Company-owned vehicles
Examples of liabilities are –
- Bank debt
- Mortgage debt
- Money owed to suppliers (accounts payable)
- Wages owed
- Taxes owed
The goal isto acquire as much assets that give you money activtely or passively which will pay for your liabilities. This money flow will allow you to be free from debt as early as possible.
Please contact us for more information at: Tom@LiquidationMotivation.Net
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