ASSET AND LIABILITY



Asset vs Liability
Son: Dad, may I speak with you?
Dad: Go ahead.
Son: Among all my classmates, I am the only one without a
car. It is embarrassing.
Dad: What do you want me to do?
Son: I need a car. I don't want to feel odd.
Dad: Do you have a particular car in mind?
Son: Yes dad (smiling)
Dad: How much?
Son:$2000
Dad: I will give you the money on one condition.
Son: What is the condition?
Dad: You will not use the money to buy a car but invest it. If
you make enough profit from the investment, you can go
ahead and buy the car.
Son: Deal.
Then, the father gave him a cheque of $2000. The son cashed
the cheque and invested it in obedience to the verbal
agreement that he had with his father.
Some months later, the father asked the son how he was
faring. The son responded that his business was improving.
The father left him.
After some months again, the father asked him about his
business
again and the son told him that he is making a lot of profit
from the business.
When it was exactly a year after he gave him the money, the
father asked him to show him how far the business has gone.
The son readily agreed and the following discussion took
place:
Dad: From this I can see that you have made a lot of money.
Son: _Yes dad. _
Dad: Do you still remember our agreement?
Son: Yes
Dad: What is it?
Son: We agreed that I should invest the money and buy the
car from the profit.
Dad: Why have you not bought the car?
Son: I don't need the car again. I want to invest more.
Dad: Good. You have learnt the lessons that I wanted to teach
you.
- You didn't really need the car, you just wanted to feel
among. That would have placed extra financial obligations on
you. It wasn't an asset then; but a liability.
- Two, it is very important for you to invest in your future
before living like a king.
Son: Thanks dad.
Then the father gave him the keys of the latest model of that
car.
MORALS:
1. Always invest first before you start living the way you want.
2. What you see as a need now may become a want if you can
take a little time to get over your feelings.
3. Try to be able to distinguish between an asset and a liability
so that what you see as an asset today will not become a
liability to you tomorrow.
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Identify yourself
Build yourself
Be yourself...
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