An asset pays you. A liability costs you.

An asset puts money in your pocket after you have it. A liability takes money out. A car, a subscription, or a house you live in can feel like wealth and still be a cost every month.

The name on the thing does not decide this. The direction of the money does. Before money leaves, ask which way it will flow next month.

Use it. For the next purchase, write “pays me” or “costs me.” Buy with that sentence in view. This is a way to see the choice. It is not a promise that money will grow.