Way to financial independence is buying assets instead of liabilities, right? Can anyone give list of popular assets?

By assets I mean things which create money and by liability I mean things which costs me money.

How to differentiate asset and liability? What are the best asset classes That I should buy?

What is the best thing I can do with my money?

  • 1
    Is gold an asset? – shravan Oct 10 '15 at 16:50
  • 1
    Could you please clarify what you are asking? "List of assets" is never-ending. What problem are you trying to solve? – Chris W. Rea Oct 10 '15 at 17:05
  • @ChrisW.Rea Is the question clear enough now? – shravan Oct 11 '15 at 2:04

An "asset" is something which you own that has a monetary value. Some examples would be your car, your house, the money in your wallet, and yes the pile of gold in your garage. Assets also include intangible things such as money owed to you for instance; although these are calculated somewhat differently.

"liabilities" are what you owe. For instance, your car loan, your mortgage, and your student loan. Liabilities can also include future debts which you may not be paying at the moment.

  • If you could in theory sell it, it's an asset. If you will have to pay it eventually, it's a liability – keshlam Oct 10 '15 at 18:11
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    This is the accounting definition of assets and liabilities, there are other definitions too. Example, as an investor, I would not call a car as an asset! – user9822 Oct 10 '15 at 21:45
  • Some classic cars are bought as investments. – Peter K. Oct 11 '15 at 2:05

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