What Are Assets And What Are Liabilities?
Anything that appreciates (value increases) over some time is considered an Asset.
Anything that depreciates (decreases in value) over some time is considered a Liability.
Why Accumulate Assets And Avoid Liabilities?
When you start and don’t have any money, I highly recommend improving human capital. Your human capital would be your best asset to leverage to achieve financial freedom.
1b. Fixed Income (US Treasury, Certificates of Deposits, Bond Funds, Peer-to-Peer Lending)
Bonds, Certificates of Deposits (CDs), or Peer-to-Peer lending typically provide cash flow in the form of interest payment because you have lent the money.
Unlike Peer-to-peer (P2P) lending, asset-backed lending involves making loans against an asset. It would be best if you found out the value of the asset. And loan only up to a certain percentage of that asset.