*** > If you count all your assets, you always show a profit. > \~ Wilson Mizner It's anything (tangible or intangible) that can be used to produce positive economic value, such as property or funds in your savings account. In other words, anything that put money in your pockets. > [!INFO] > Cash itself is also considered an asset. ### What do you mean by Tangible? Anything that can be touched. Such as: - Current Asset: Can be expected to sell within current fiscal year. e.g. inventory. - Fixed Asset: Cannot easily be converted into cash ### What do you mean by Intangible? Lacks physical substance. e.g. patents, software, franchises, time. The intangible assets are very difficult to evaluate and suffer from typical market failures, such as: - Financial Assets: Including financial investments, bonds & stocks. ### Why assets matter? Your assets come into play when determining your net worth, or personal price tag. **Ideally, your net worth should increase over time**. This metric can help you monitor your progress toward reaching financial goals like buying a house or saving for retirement. > Your greatest asset is your earning ability, Your greatest resource is your time. > \ ~ Brian Tracy *** **References**: - [What Are Assets?](https://www.nerdwallet.com/article/finance/what-are-my-assets)