In my last post in this series, I talked about assets.  This post will cover the liabilities.  The assets are the things that have value and liabilities are the debts you owe.  I think most people understand this but here are some basic as well as more advanced concepts about it. Why Liabilities Are Bad Liabilities are the icebergs.  When things are going bad, liabilities make it worse.  Because, in most cases, you have committed to pay them even in the bad times.  If you were to lose your job, what are the payments you would have to keep paying?  And what are the assets that would keep paying you money in those hard times? So, what most liabilities represent is risk.  ...

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