Rethink Your Assets

assetsWealth, as well as other kinds of success, generally rely on one factor. Your assets need to be greater than your liabilities. While these are usually associated with accounting, to use them to evaluate a project we need to look at them a little differently.¬†An asset is generally considered to be something of value. However what appears as an asset on an accounting sheet may not really be one and what doesn’t appear on an accounting ledger could have great value.

First let’s look at traditional assets and see why they may not be assets. A boat is considered an asset by traditional accounting methods, but when you calculate all the money spent on upkeep, storage etc. it can actually be a liability. The same goes for other traditional assets like a home or car. The ongoing costs can be greater than the value. So these become liabilities instead of assets.

Then there are the assets you have that aren’t defined as traditional assets. Your skills, intelligence, and drive are major assets, even though they wouldn’t appear on a balance sheet. The more you learn, the more assets you have. Keep growing your assets, and you will succeed.