Financial Term
Liability
Financial glossary definition
Definition
Any financial obligation or debt you owe, including mortgages, car loans, student loans, credit card balances, and personal loans. Liabilities reduce your net worth.
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Related Terms
Asset
Anything of monetary value that you own, including cash, investments, real estate, vehicles, and per…
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The portion of an asset that you truly own — the difference between its market value and any outstan…
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Assets that can be quickly and easily converted to cash without significant loss of value. Examples …
Net Worth
The total value of everything you own (assets) minus everything you owe (liabilities). Net worth is …