Assets:
Assets are things that you buy that make you money or have a part in making money, like an investment or a car that will get you to the office quicker giving you more time to make more money.
Liabilities:
Liabilities are things that you buy that DON'T make you money, like a carpet or a nice plant in your garden.
Liabilities are usually more popular because they look fancier, they often give people short lived joy while taking your money.
- Depending on how you use certain things, they could fall into either the asset or the liability title. For example, if you buy a "Trading for dummies" book and leave it on the shelf, it would then be a liability as it will not help increase your capital but still cost a fraction of the capital. However, if you use the book to learn how to trade and end up making money, that book would be your asset.