First lets start off with a two wire DC system.
We measure voltages just like we measure distance - between two points.
When distances are measured, one can say that the total distance is taken in a positive direction from point A to point B, and you could also say that by measuring in reverse, from point B to point A, then you have a negative distance, but the actual value is still a real existing number, just that it has a minus sign in front of it.
In electrical terms this means, take a voltmeter, and connect across the two wires and a voltage differance will be detected.Reverse the two wires on your voltmeter and a minus voltage would be detected.
Add also that if you reversed the power supply terminals instead, then you would also get a minus voltage.
With a DC circuit, it would not matter how long you kept the meter connected, the voltage would always remain the same, the current flows from one part of the supply straight through the intervening electrical circuit to the other.
Keeping with a two wire circuit, now an AC system.
Connect your voltmeter as before, and we will also add a condition that the AC voltage changes very slowly.(slow enough for you to see what is going on)
You connect up and you get a reading that rises from zero to some maximum level, then falls, and then your meter(if it is capable) will then start to read a voltage that gets more and more negative, until it reaches some minimum value whereupon it will rise back up to zero volts.
At this time, all you really know is that the voltage differance between the wires is varying, you do not actually know if the variation because one or the other wire is rising and falling in value and the other is remaining fixed.
The reason you do not know this, is that you also need something as a referance to the whole system.
Back to the measurement of distance analogy - knowing a measurement of distance is fine, but it would be helpful perhaps to put that distance into a wider context, like where on the face of the planet those two points are, and this would then become our referance.
We do something very similar with electricity.
If one connects one end of the circuit to ground, or earth, we have a fixed referance point, since we always treat earth as zero volts.
Since the earth is our largest available referance point, its value can be taken as fixed and no changes to our circuit will alter this.
Since one wire is now fixed to zero volts, then any differance of voltage between our two parts of the circuit must be due to variation in voltage from the other point.
That point can rise to some maximum value, fall down to zero again, and now it can also fall below zero - to a minus value.
The earthed end still has not changed - it is still zero volts, but current is now flowing from it, and into the other point.
Now here comes the good bit,
This wire that is fixed to the earth, it carries electrical current, therefore it is not a true earth, because earths do not carry current, earths are used as referance points.
It is also clearly not live, because that is the property of the other point which supplies and recieves current in turn.
This zero volts line attatched to earth must then be called something else - neutral.
There are many ways that earths are used, but in general an earth is a referance zero point for other parts of an electronic/electrical circuit.
To add further explanation might actually detract from what I am saying here as you can easily get confused.