Content on The Evergreen Edit is for educational and informational purposes only and is not individualized financial, investment, tax or legal advice. Learn more.
An asset puts money in your pocket or holds value over time. A liability takes money out. The distinction sounds obvious until you apply it to cars, homes and gadgets.
The gray areas
A home can be both — it may appreciate, but it also carries ongoing costs. Honest accounting includes taxes, insurance and maintenance.
A useful rule
Before a big purchase, ask: in five years, will this have earned me money, saved me money, or cost me money?
Written by
James Whitfield
Wealth Correspondent
James writes about net worth, real estate and financial independence for readers playing the long game.
Get smarter about your money.
Join readers who get The Sunday Edit every week.
%22%2F%3E%3C%2Fsvg%3E)
