Your personal assets include your own cash, credit and other valuable property such as real estate (your home) and securities. You should always plan to invest in your business using your own personal assets. Be careful not to rely too heavily on financing your business with expensive forms of debt financing, such as credit cards. This is risky and may affect you negatively when the time comes to seek other financing.
Making a list of your personal assets can take up a good amount of time if done correctly, but the effort put towards the list is well worth it in the end. Not only will this list give you an idea of the worth of both your physical and financial assets but can also assist you when planning for retirement and insurance claims.
Separating your personal assets into two categories can be helpful when creating your lists. Typically the two categories are physical and financial. Below are common examples of the various assets that fit those descriptions.
Physical
-Home
-Real Estate
-Electronics
-Vehicles
-Jewelry
-Artwork
Financial
-Savings
-Retirement Accounts
-Life Insurance
-Pension
After compiling your list you will be prepared to face your future financial decisions with the best information available.
Have you ever prepared a list of assets?
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