A person's debt is how much he or she owes to others.
Debt can be in the form of money, products or services owed to someone else.
If you borrow money, you are taking on new debt.
An asset is something that has value, such as money, property or even a nice personality.
Assets can be used to pay off debts.
Specialized knowledge or skills are also assets that can be used to get a job or earn money.
Real estate is property such as land, houses and buildings.
Buying, selling or renting property is the business of real estate.
Buying and selling real estate is a popular form of investment.
Inventory is a detailed list of items in one's possession.
In business, one's inventory is the supply of items that are ready for sale.
If a store runs out of things to sell, it needs to resupply its inventory.
An investment is the purchase of an asset with the hope that its value will increase.
A good investment will produce income, such as rental income.
If the value of an asset falls, the investment will lose money.
What is the learning of a new skill?
Learning of a new skill is a good investment, if it can get you a good job.
When you sell an asset at a higher price than what you paid for it, you have made a profit.
When you use a credit card, you are taking on debt.
