Nov, 26, 2o08
If we are going to be strict about the definition of liability as "something that takes money out of your pocket every month, wether you work or not", then life itself would be a liability.
But then again, if asset is, "something that puts money into your pocket each month, regardless if you work or not", life can only be an asset if you work or you make money from your mere “existence” (ansarap nun!). Otherwise, you are worthless. Papayag ba kayo?
Unfortunately, life is not the issue here, otherwise, I think I've settled the score already. Hehe. I'ts the house that we are trying to qualify as an asset or a liability.
Now the reason, I'm giving the above analogy for, is to support what neo just said. It doesn't mean that just because we are spending some money for owning a house, it becomes an accountability.
Besides, when we talk about income, it is the “net” proceeds that matters more. Clearly having your own house increases net returns as it decreases expenditure compared to renting an apartment. Unless of course, you prefer to stay in the streets.
“Revenues and expenses” will always be part of any aspect of life, literally and figuratively. Unless of course we return to prehistoric times. When everything (I think) is neither an asset nor a liability.
Or a liability! Try living during those times.
If we are going to be strict about the definition of liability as "something that takes money out of your pocket every month, wether you work or not", then life itself would be a liability.
But then again, if asset is, "something that puts money into your pocket each month, regardless if you work or not", life can only be an asset if you work or you make money from your mere “existence” (ansarap nun!). Otherwise, you are worthless. Papayag ba kayo?
Unfortunately, life is not the issue here, otherwise, I think I've settled the score already. Hehe. I'ts the house that we are trying to qualify as an asset or a liability.
Now the reason, I'm giving the above analogy for, is to support what neo just said. It doesn't mean that just because we are spending some money for owning a house, it becomes an accountability.
Besides, when we talk about income, it is the “net” proceeds that matters more. Clearly having your own house increases net returns as it decreases expenditure compared to renting an apartment. Unless of course, you prefer to stay in the streets.
“Revenues and expenses” will always be part of any aspect of life, literally and figuratively. Unless of course we return to prehistoric times. When everything (I think) is neither an asset nor a liability.
Or a liability! Try living during those times.
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