Let’s make sure we understand what an asset is.
An Asset can be defined as anything that you own. They are usually divided into at least the following three categories:
Liquid Assets – these are sometimes called cash assets
Examples:
Balance of Checking Account
Balance of Savings Accounts (Budget Management Account, Goals Account, Emergency Fund)
Cash you have in your pocket or in the home
Non-liquid Assets – these are other investments that you have that are not cash and cannot be converted to cash quickly
Examples
Your home equity (the current value of your home minus your mortgage balance)
Investments in Stocks, Bonds, Mutual Funds
Cars (the current value minus any loan balance)
Snowmobiles, Skidoos, ATVs, etc
Collections (coins, baseball cards, art, etc)
Personal Property – these are assets that you use in your daily life that you are not holding for investment purposes
Examples:
Clothes
Furniture
Other home furnishings
Jewelry
Just because your asset is not listed doesn’t mean it is not your asset List the value of anything you own. There are NO Exceptions!
Your Assets are one half of your Net Worth. See What is Net Worth?