Liability

A liability is something that takes cash out of your pocket month after month — a car (fuel, insurance, repairs), the house you live in (dues, taxes, upkeep), any loan. In this course’s cash-flow framing, plenty of things people proudly call assets are liabilities. Owning liabilities isn’t wrong; counting them as part of your wealth machine is.

First used in: 0.1 · What an asset actually is