Sometimes it’s hard to tell.  Picture this – you drive home after a long day of work for too little pay and you see neighbors with fancy new houses, brand new cars, beautiful landscaping and all the newest toys.  You think to yourself that they must be rich – right?  More than likely – the answer is no.  In fact – they are probably in debt up to their eyeballs with few financial assets.  This sounds like a contradiction since they have so much stuff, so let’s take a look at what an asset is in comparison of a liability.