One person’s asset is another person’s liability. Cash is an asset for a person, but a liability for a bank who owes interest payments on their clients deposits.
Your mortgage is a liability for you and an asset for the bank who collects the interest you pay back to them.
Your amazing art skills are an asset for you and a liability for your competitor.
We often hear, “Our employees are our greatest assets.” This is meant to be a compliment to employees. It’s also common in places like law firms where it is likely that they don’t own machinery to manufacture things, or have inventory like retail, as a result, the employees and their knowledge is THE asset.
Do you ever hear those same employees announce, “My company is a liability to me!”
Not likely, but it is common for most assets to be a liability on an opposing balance sheet. A company could certainly be a liability to you if they underpay.
Assets and liabilities are everywhere, if you look deep they can be skills, people, health, goods, services, time, attitudes and more. Most people can’t see anything but the standard cash, stock, cars and homes. Perhaps it’s time to take time and make a deeper list of your assets and liabilities. That way, you can ensure your assets outweigh your liabilities.