Asset
GeneralAnything you own that has financial value. Assets include cash in the bank, a vehicle, investments, or property. Your total assets minus your total debts equals your net worth.
Related terms
-
Net worth
The total value of everything you own minus everything you owe. It can be negative, and that is normal early in life. Tracking net worth over time is one of the clearest measures of financial progress.
-
Liability
Any financial obligation or debt you owe. Liabilities include mortgages, student loans, credit card balances, and money borrowed from family. Your net worth is your assets minus your liabilities.
-
Equity
The portion of an asset you actually own. For a home, equity is the market value minus the remaining mortgage. Equity grows as you pay down the loan or if the property value rises.