Liabilities, like debt, destroy your wealth. When you owe someone money, you don’t own the thing you bought until you pay off your entire debt. This chains you and prevents you from becoming financially free.
It’s an even bigger liability when you go into debt for something that depreciates in value over time.
But when you own assets, you generally build wealth. Think of buying real estate and stocks with your own money. These assets tend to appreciate in value and increase your wealth in the long run.
