Personal Finance
Understanding Asset and Liability
By Create Wealth Through Long-Term Investing and Short-Term Trading  •  March 18, 2012
Read? Opportunity and Outcome??? (2) What is an asset? An asset is something that can continuously or periodically put cash into our pocket. What is liability? Liability is something that can continuously or periodically take away cash from our pocket. So is our residential home an asset or liability? When we are still paying monthly mortgage loan on our residential home, it is a liability as it is taking away cash from our pocket. It is only when we have fully paid up our residential home; it has stopped becoming a liability but not an asset yet as it doesn't put any cash into our pocket. This is probably the reason why the widely accepted method of computing our net worth is to exclude the value of our residential home as an asset but to include any outstanding mortgage loan as liability. Renting out rooms from our residential home When we rent out rooms ......
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By Create Wealth Through Long-Term Investing and Short-Term Trading
I am 62 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016. Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 3nd year Uni in SUTD. I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild. I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038. Cheers!
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