Is your money safe
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
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.