Liability
GeneralGlossary term
Definition
A financial obligation or debt owed to another party. Liabilities include mortgages, auto loans, credit card debt, and student loans.
Related terms
- AssetAnything of value that an individual or company owns, such as cash, investments, real estate, or personal property. Assets are the foundation of building wealth.
- Net WorthThe total value of your assets minus your liabilities. A key measure of financial health that should ideally increase over time as you build wealth.
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