Understand the difference between an asset and a liability.

A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. An asset however is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Therefore, the difference between an asset and liability is simply that liability takes money from your pocket while assets put money in your pocket.

1. Cash

2. Real Estate

3. Bonds

4. Stocks

5. Mutual and Index Funds

Money master the game – Tony Robbins

6. Equipment

7. Patents – protect inventions

8.Trademarks – protect symbols, words, phrases,

9. Brand and Goodwill

10. People – Acquihire

11. Raw materials and Commodities

12. Books, Songs, Digital Courses, Information or Content

13. Royalties

14. Unique Rights like churches and museums

15. First-mover advantages and proprietary business models

16. Time-Money-Time Arbitrage 

One of the most important rules of money is to never invest in things you don’t understand. The house you live in isn’t an asset, it’s a liability.