The Assets and Liabilities Trick They Won't Tell You

What is an Asset or what is a Liability?

We all know financial educators want to make sure we put things into such classifications.
Once we have classified something, we should focus on reducing it if it is a Liability and increasing it if it is an Asset...

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Thank you TEDX...

Answering the question of "How do I classify something?" or "What is an Asset/Liability?" becomes something of a political science.

Take this power outlet tester for example:

Is it an Asset or Liability?

• If the owner knows of no person that uses an AC power grid... it is with out a doubt a Liability.
• Most anyone in the U.S. could use it, and if they see the red light come on... complain to the last electrician to mess with that power box; or just know they should not use that plug. But of course this is all under the assumption they use U.S. standard AC power.
• Someone who knows the vocabulary written on it (ground, neutral, hot, open) might know how exactly to fix any problems that may arise with regular U.S. power systems.
• An Agorist on the other hand would be certain to explain throughly to the IRS how extremely costly, space consuming and possibly unreliable this object is, thus it is clearly a Liability. While in the exact same year the Agorist would be sure to maximize the use of the object to earn favors(food, shelter, clothing and other assets) from other people.

The lesson to be learned: "Something is an Asset or Liability because of the way the owner chooses to use it."

• Under better ownership a Liability can become an Asset.
• Under lower quality ownership an Asset becomes a Liability.

If something is a Liability with no legal/lawful action that can make it an Asset, the supposed owner does not truly own;
Those who control "legality" and "lawfulness" are the real owners in such a case.