Money is everywhere. We use money every day to fulfil our needs, wants and desires. Don’t you think learning about money is Important? It is very important. Here are the basic things to get you started.
1. Income
The amount of money you earn from working, renting, business and royalties.
2. Expense
The amount of money you need to spend in order to survive and enjoy your life.
3. Asset
Something which puts money in your pocket. Eg: Stocks, Bonds, Gold, Real-estate, Business etc.
4. Liability
Something that takes away money from your pocket. Eg: Car, Own House, Gadgets, Jewellery etc.
The assets and liabilities mentioned above are not fixed. They may change. For example, If you buy a car and rent it on Uber, it is an asset, at the same time, if you buy Gold to make ornaments then it is a liability. Simply put, If the commodity makes you more money than you spent on it, it is an asset, if not then it is a liability.
5. Tax
The amount of money you pay to the government on your income or profit is your tax. Your tax depends on your country’s economy, government decisions and many other factors.