eli5 what’s the difference between an asset and a liability ?

Question

Couldn’t get it while reading Rich dad Poor dad book

In: 1

Answer 1

If it makes you money, it’s an asset. If you have a car that you paid off. It’s not an asset if it cost you money to keep. If you sell it for anything less what you paid plus any cost to insure and maintain then it’s a liability

If it doesn’t make you money, then it’s a liability. If you own a house, you still pay insurance and property tax, it’s a liability.

Positive cash flow = asset

Negative cash flow = liability

[Cash flow](https://www.youtube.com/watch?v=A8vD_XO0vUU)