Is your money safe

@rkrish (3003)
India
November 5, 2008 2:11am CST
Popular quote i read recently, " There are two sides to a Balance Sheet.- Left & the Right ( Liabilities and Assets respectively) if on the Left side there is nothing right..............then on the Right side there is nothing left " Is your money safe
4 responses
@poohgal (6848)
• Singapore
5 Nov 08
The equation goes Asset = Liability + Equity. When you talk about personal finance, Asset is what you own, Liability is what you owe (debt) and Equity is your income. If we don't own assets, then we won't owe others money (no debt). If we don't have equity (no income), we will have no money to buy assets but we can still own assets through loans. Is our money safe? Why not? So long as the banks don't collapse and we spend prudently, our money is safe.
@rkrish (3003)
• India
5 Nov 08
HI pooh, nice to hear something great from you but if both are sides are nil then where is our equity...
@poohgal (6848)
• Singapore
5 Nov 08
If Asset = 0, Liabiity = 0.. Equity also 0. If let say my income is $5k, then I'll have asset $5k (cash is considered as asset) and my equity also $5k.
@subha12 (18453)
• India
5 Nov 08
In current context I think none can say money is very safe. eacxh day I have to pray that it is atleast safe. i have not invested in shares. I just have kept in bank. lets see.
@rkrish (3003)
• India
5 Nov 08
I am hearing major banks are getting closed due to high NPA
• Pakistan
5 Nov 08
hi friends i think it is not the matter of worry i think you are on equal sides when you have nothing on both sides. and if there is something on one side that is yours although it is profit or loss. Prince Sad
@rkrish (3003)
• India
5 Nov 08
what happend to the capital you invested my friend...
@aswathj (177)
• India
5 Nov 08
I dont know..exactly. if there is nothing in the balance sheet on both sides,he must be in neutral.. No income and no debt.
@rkrish (3003)
• India
5 Nov 08
Thanks for your response