In today’s world, if we want to survive in this society, what we must be done? We have to balance the assets and liabilities. Assets includes houses, furniture, kitchen items, cash in hand, etc. Liabilities include lack of cash, loss of assets, credit cards depreciation on assets, etc.
The assets and liabilities have to balanced, if it is imbalanced either loss of assets will occur or there will be more accumulation of assets which may be utilized for future generation. This kind of thinking is wrong. We have to accumulate wealth only for our spouse. Children are just lent to us. We have to educate them, provide them food and shelter, we have to do all the necessary things to keep them safe and secure.
At certain point of time, we realize we are not able to live without assets. This will automatically result in lower standard of living. Liabilities are not able to give enough satisfaction, it burdens our mind and heart. Hence, if we have to live a comfortable and satisfactory life, we must have luxuries that satiates our needs.
In simple, assets and liabilities have to be balanced otherwise, it will lead to disaster. Accumulate wealth for yourself not for your children and your grandchildren. Let us now discuss assets and liabilities in detail.
The formula for calculating assets
Assets are profits while liabilities are losses. One has to balance the assets and liabilities or else they will be tempted to do the wrong thing.
Assets are profits that should be analyzed and no matter what how many days it takes it must be balanced with losses. The assets should be more than losses. If there is no more profits, they should give it as donation to orphanage homes, old age homes, physically and mentally disabled peple’s home.
If you see people living on streets, give them blankets, pillows, food to eat . If you are a business, give them a job. In this way, everyone’ problem is solved. You can also gift a house for staying for a short period.
Assets and liabilities are two cups. In one cup, there are profits. In other cup, there are losses.Which one would you choose? Of course, it is profits. But I will choose losses because it gives enough strength to grow up. Through failure and losses, we grow up.
Suppose, you are diagnosed for a small disease. It is curable but the doctors take Blood test and many other tests, to prove the disease is this. The root cause of this must be found out. That is why the doctors are diagnosing what triggered the symptoms. So the patient have to cooperate with the doctor in charge and make it a habit of visiting the patient often and taking notes of the symptom. The doctor fee may be high but losses turned out to be a profit because the root cause of the disease is found out. So in this case, loss is profit. This is my peppy understanding of assets and liabilities.