An asset is a thing that you own. Some assets will make you money and some assets will cost you money.
Some assets are long term – you can borrow money to buy them, and you will own them for a long time.
Some assets will be owned for a shorter period of time.
Here’s Some Examples
- Your house
- The money in the bank
- A car
- A caravan
- A boat
- An investment property
- Shares
- Your superannuation money
- A computer
- Furniture
- Your phone
- Your health
- Your life
Insurance and Assets
Most assets will be able to be covered by insurance – that is, you can pay someone to help you get a new one if yours breaks or is destroyed. Paying insurance reduces the risk that we’ve taken to invest in our asset.
The Key Questions
When I run through Money Mentoring for assets, we look at the following questions:
What assets are making you money?
What assets are a joy to your life?
What assets are costing you money?
What assets are causing you stress?
What to Do Next
After answering these questions, you can often determine what you want to do with your assets – keep, sell, put more money in to improve and enhance them, or just let them be.
An asset that’s costing you money and causing you stress might be time to reconsider. An asset that’s making you money or bringing joy – that’s one worth keeping and investing in.
The key is knowing which assets are which.
Disclaimer: This information is general in nature and doesn’t take your personal circumstances into account. Always seek professional advice for your specific situation.
