What is aPERSONALASSET? Definition: Personal Asset is any items that you own that has a value.
Detail Explanation: Personal Asset can be in the form of cash like the savings you have in the bank or in the form of real estate such as your home, land or buildings. Aside from real estate it can be also a personal item that has a value. Examples are cars, antiques, electronics, jewelry etc. Your investments is also considered as your personal asset. Personal Assets like cash is usually put in the bank because they earn an interest instead of just putting all of your cash on hand. Emergency fund is usually put in the bank so that in times of emergency you can easily withdraw it. Personal Asset like jewelry can be converted into cash if you will pawn it. Personal Assets can be also a person’s personal characteristics. Your personal assets are your best smile, sense of humor, positive attitude, great communicator, etc It is wise not to put all your personal assets into one single asset type. So build your personal assets into different types. It is important to protect your assets. Why this is important? In case of emergency or a sudden loss you should list your family or friends who can be authorized to handle your personal assets. Common identification of person’s wealth is through his/her personal assets so if you have lots of personal assets learn to allocate it carefully. Your net worth which is the total assets minus the total liabilities is how you measure your personal wealth. Take note that it is possible to have personal assets that worth a million dollars but have a very low net worth due to debt. So control your spending and manage your debt wisely for you to achieve your financial goals and securing your financial freedom. Get the free guide on 10 ways to save money now - "Free Budgeting Guide�.