![]() Your more liquid assets - like cash and stocks - as well as real estate you own fall into this category. Tangible assets: These are physical and easily quantifiable assets. liabilities, there are also different types of assets and liabilities.įor instance, assets can be either tangible or intangible and short term or long term: While the above definitions will give you a basic understanding of assets vs. ![]() Examples of liabilities include credit card debt, personal loans and even income tax, as it’s money you owe the government. This includes anything that provides cash flow or will do so in the future (known as future economic benefit), like investments and savings, an NFT or your 401(k).Ī liability is a debt and has a negative impact on your net worth. liabilities: What’s the difference between them?Īt a surface level, the question above is simple enough to answer.Īn asset is something you own that has value, meaning it positively impacts your net worth. To help you gain some clarity, keep reading to learn the definitions of assets and liabilities, a few examples of each and how you can use all this info to calculate your net worth and reduce your liabilities. However, depending on the complexity of your financial situation, the calculations might not be as black-and-white as you’d expect. Individuals, businesses and even countries follow the same basic process to figure out their net worth, and you don’t need to be an accountant to understand the basics. ![]() If you’re curious about what you’re worth financially, it’s wise to weigh your assets vs.
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