A lot of people are having issues with their relationship with finance. Finance is something that everyone cannot do without getting involved in as they have need to purchase, invest, sell and distribute using money and with this, a person has to understand finance and what it is about.
Income
Income is the money received as payment from work done, or through investment. it can be from day to day work known as wages, from investment know as interest, from business and sales is revenue and so on. Income is money coming into your wallet/account.
Expenses
Expenses is money taken out from your wallet. Either food, clothing, shelter, money for services rendered and any other expenditure. Expenses is a minus to an account, it is a minus to funds owned by a person. Every penny spends is an expense and people can even spend down to a negative figure using a credit card.
Asset
asset is anything that is of value and/or brings in income to your wallet. Savings account, shares, business, house for rent, cryptocurrency, gold, bonds and so on. Keeping investment diversify is a good advise as companies may not thrive.
Liability
Is anything that seems like an asset but takes away money from you. Liabilities are not often seen as money takers at the beginning, they often see it as asset but once they start to take away money from your wallet, it is regarded as a liability.
one of the things I believe is that for each of the definitions there must be an action plan that supports the finances, you have to have a plan to earn one to spend one to accumulate assets and another to raise capital, no doubt the finances is something we must have very present in our lives.