An asset is anything you own that has current or future economic value. To identify if something is an asset, ask yourself: “Does this item have monetary value and do I own it?”

Asset Definition: An asset provides economic benefit to you as the owner. This includes:

Physical Assets:
– Your home and property
– Vehicles (cars, motorcycles, boats)
– Electronics and furniture
– Jewelry and collectibles

Financial Assets:
– Bank accounts and cash
– Stocks, bonds, and investments
– Insurance policies with cash value
– Money owed to you (loans you’ve made)

Key Asset Characteristics:
1. You own it – Legal ownership or control
2. Has value – Can be sold or provides benefit
3. Future benefit – Will generate income or appreciate

Asset vs. Liability: Remember, assets put money in your pocket, while liabilities take money out. Your home is an asset, but the mortgage is a liability.

Personal Asset Examples: If you own a £10 note, computer, car, or someone owes you money – these are all personal assets because they have value and belong to you.

Understanding what qualifies as an asset is crucial for tracking your net worth and making informed financial decisions for your family’s financial planning.