Definition
Assets and liabilities are two important parts of understanding financial position. Assets are things you own that have value, while liabilities are the amounts you owe to others. Together, they help show your overall financial health.
Example
If you own a house worth 50 lakh and savings of 5 lakh, these are your assets. If you also have a home loan of 30 lakh, that is your liability. By comparing both, you can understand your financial position.
Caution
Having high-value assets does not always mean strong financial health if liabilities are also high. It is important to maintain a balance between assets and debts and manage liabilities carefully.