Everything can be a asset and everything can be a liability. Take for example of a car. The cost of a car is astronomical when calculated. The monthly payments, gas, maintenance, and car insurance all combine to create a massive collateral damage to the pocket book. One way to turn this apparent liability into a asset is by employing it to generate positive income. This can be done by using it to transport people, move things, or to make it a mobile office.
Some say that one’s house is their greatest asset and this may be true. This can be the case since it can be used to invite friends over to have a dinner engagement. Also, it can be rented out for vacations. Others ways it can be a asset is by painting the exterior, make a beautiful rock garden, adding a pool or extension to the house like a room, porch, or deck. A house can also be used as storage for other assets or put things on display for visitors to view. It can be used as a bed and breakfast or a room can be rented out to a student. Food is another asset to the home owner as well as a security system. Selling everything in the house may be an excellent idea. It can be replaced with new everything. One thing that may not be obvious is cutting back the expenses of the house like electric and water bill or property tax and insurance which the Archer method of decreasing expenses and increasing income.
To give fair and honest scales, each asset can be a liability as well, the other side may say. One of these is if there is a outrageous glut of a specific item and nobody wants to purchase it or it becomes worthless. Baseball cards may be a good representation of this since there are so many common cards. But not only that, if a star player loses his fame, the card value goes down and becomes a common card. Any investment can be the same.
In the end, everything can be an asset or liability because “every hands a winner and every hand is a loser. You just got to know when to hold them and know when fold them. Know when to walk away and know when to run.”