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Assets
Definition
Assets are items of economic value owned by an individual or business, including cash, investments, property, and personal belongings.
Explanation
Assets are typically categorized as liquid (easily converted to cash) or illiquid (difficult to sell quickly). Common personal assets include cash, savings accounts, stocks, bonds, real estate, vehicles, and retirement accounts. For businesses, assets include accounts receivable, inventory, equipment, and intellectual property.
Growing your assets over time is the primary way to build wealth and increase net worth.
Example
A person's assets might include a $250,000 home, $50,000 in retirement accounts, $15,000 in stocks, and $10,000 in cash.