Generally, anything that has positive monetary value is considered as an asset like houses, cars, bonds etc. Anything that has negative monetary value is considered as a liability, e.g. all types of debts. However, in this book, we will consider those things assets that appreciate in value with time or generate positive cash flows/ profits etc.; all other things are liabilities for us. To become financially free, you have to increase the assets and must keep the liabilities at a minimum. Most luxury items typically depreciate in value over time, while well-maintained investments in bonds, real estate, stocks, etc. appreciate with time.