Let's break down the money moves:

Assets are your friends—they're the stuff filling your wallet. Real estate generates rent, stocks pay dividends, crypto staking brings rewards. Anything generating income goes here.

Liabilities drain your funds. Debts, loans, outstanding payments—they work against you.

Now let's talk investing tools. A stock represents actual ownership in a company. You own a piece of the business and participate in its growth.

An index? Think of it as a scoreboard listing multiple stocks together—like the S&P 500 tracking 500 big companies. It shows overall market health.

ETFs bundle that concept into one tradeable package. Instead of buying 500 stocks individually, grab one ETF holding all of them. Simple diversification.

Bonds are different—you're the lender here. You loan money to governments or corporations, they pay you back with interest. Lower risk, steady returns, but less exciting than equities.