An “asset” is a resource that provides economic value to its owner, which can be an individual, corporation, or even a country. Assets can be converted into cash. While some assets are “liquid,” meaning they can become cash easily, many are illiquid, like a home, and cannot be easily converted into cash.
Examples of assets include, but are not limited to, cash and cash equivalents like checking and savings accounts; land and the buildings attached to them; personal property like jewelry, equipment, and vehicles; and intangible assets stocks, bonds, and patents.
An asset is a vital component of calculating your net worth, because net worth essentially subtracts your liabilities from your assets. While liabilities reference what you “owe,” assets refer to what you “own.”
Before you consider acquiring assets, strengthen your understanding of basic financial elements like compound interest, taxes, and risk analysis, and get yourself out of debt. Asset accumulation takes decades of strategic planning and saving, but will benefit your financial security in the long run. If you want to learn more about strategies to improve your financial life, visit Syncis at https://www.syncis.com/blog/