A Beginner’s Guide to Assets: What You Need to Know

It is important for everyone to have a diverse set of assets for numerous reasons. Assets can be useful when trying to get a loan and securing your financial future. This article will go into detail about what assets are, why they are important and everything else you need to know. The sooner you start getting this information, the easier it will be to meet your financial goals.

What are Assets?

Simply put, an asset is anything valuable that you own. It could be a car, boat, stocks bonds, a house or a pair of diamond earrings. For investors, stocks are among the ultimate assets to have. It all depends on your particular situation. If you own a transportation company, having an entire fleet of vehicles is certainly an asset.

Types of Assets

There are different categories of assets that you should take the time to look into and understand, including:

  • Home: A house is one of the most valuable assets the average person will ever own. Homes tend to appreciate over time, which means that they increase in value. This is especially true if you maintain and make improvements to your home over time. It is the ultimate long-term investment.
  • Commercial Properties: There are also commercial properties, which are huge assets for real estate investors. Some properties are obviously more valuable/profitable than others.
  • Bank Account: Even a simple bank account can be a significant asset, depending on how much money you have in it. It can be a checking account or savings account. Money market accounts also count as assets.
  • Vehicles: A motor vehicle such as an SUV, pickup truck or sedan can definitely be an asset. Unlike homes, these assets depreciate over time. In fact, the value of your vehicle decreases significantly the second you drive it off the lot. This isn’t to say that owning a car is not a good thing for a number of reasons though.
  • Investment Portfolio: There are many different types of investments that can make up an investment portfolio, including stocks, funds, bonds and others. Invest securities are widely regarded as one of the most valuable investment assets in existence.
  • Precious metals: Certain metals like gold and even silver can be highly valuable assets. The value of gold has been high for quite some time now, and that most likely won’t change anytime soon.
  • Life insurance policy: A person’s life insurance policy can be a significant asset as well. Once the policy holder dies, their beneficiaries collect the money that has accumulated over time.

Calculating Your Assets

It is a good idea to spend some time calculating your total financial assets so you can determine your net worth. Make sure that you factor in all of the items listed above to get a full and accurate accounting of your total assets. If you don’t know exactly how much your home is worth, take a look at similar houses in your area to get a rough idea. You will also need to factor in money you owe for things like loans, back taxes, credit cards, and any other form of outstanding debt.

Why is Asset Diversification so Important?

You should try to diversify your asset portfolio as much as possible, as it is good for your overall financial well-being. It can put you in a much better position for obtaining a loan or just getting by when things are tough for you financially. Lenders tend to favor applicants with a diverse portfolio, so you’ll need to keep that in mind.

How to Diversify Your Portfolio

When you set out to diversify your portfolio as effectively as possible, there are a few key things to keep in mind. You need to make it a goal to have different types of assets (vehicle, house stocks, etc), as well as diversification within each category. For example, it’s not enough to just have one type of investment. If you really want to create a strong portfolio, you should have numerous types of investment across the board. This means stocks, bonds, funds, and other things that could be profitable in the short and/or long term.

Most people have at least one or two assets, but it’s important to aim for accumulation and diversification. The more and different assets you acquire, the stronger your financial situation will be as a whole. Keep in mind that there are many different types of assets you can get. It is crucial that you take the time to figure out which assets you currently have and what your net worth is. This will give you a good place to start. As you begin to acquire new assets, you can recalculate your net worth to measure your financial progress.

Categories: General

10 Effective Ways to Make Extra Money from Home

If you want to make some extra money to supplement your income, there are plenty of effective ways to do so from home. These methods can provide you with a fairly easy way to rake in some extra cash if you are struggling at the moment. There are many different ways to do this, but some of them are better than others. This article will cover some of the best side gigs to help you out financially when money is tight.

  1. Take Surveys

There are tons of websites that you can go on to take paid surveys to earn a little bit of extra money in your free time. Some of these surveys only pay a dollar or two while others pay up to $20. The average survey takes around 5 minutes to complete, so you can do quite a few in the span of an entire day if you want. Some people have even made an entire part time job from this.

  •  Virtual Assistant

Becoming a virtual assistant is another great way to supplement your income without leaving home. Lots of people and businesses are looking for skilled individuals to help them out. You could be asked to do everything from managing social media accounts to answering emails. It requires good organization skills and a conscientious nature.

  • Tutoring

If you are very knowledgeable in a certain subject like math or science, you could become an online tutor. You will be able to find quite a few sites that pair struggling students with tutors. You can make some pretty good money from doing this, depending on how much free time you have.

  •  Blogging

There is no question that blogging can be very lucrative, especially when you really establish your blog. Once you get a decent amount of regular traffic, you can use advertisements to start generating extra income on the side. Just make sure to actively promote your blog and update it with fresh content on a regular basis.

  • Freelance Work

Whether it is writing content for internet marketers or web design, there is a lot of money to be made in freelancing. There are lots of sites where you can go to advertise your services and submit bids for jobs. If you have a certain skill to offer, you can be sure that there are people who will need it. The more established you become in your freelance work, the more money you can potentially make.

  • Sell Items Online

A lot of people have made quite a bit of money from buying and reselling various items online. If you are artistically inclined, you can create your own things to sell on websites like eBay and Etsy. These sites can provide you with a very effective way to make money on the side. You can also sell some of your belongings that you no longer want for extra cash.

  • Review Website

You could get paid a decent amount of money to use certain websites and give detailed feedback. There are always people who are looking for useful feedback on how their websites function before launching them. This typically doesn’t take a lot of time, and you could make some money on the side.

  • Become a Travel Agent

While it might seem like travel agents are a thing of the past, these services are still very much in demand. You will get to help people plan their trips and get them the best possible deals for their money. There are quite a few people who pay a decent amount of money for these services, so you will need to keep this in mind.

  • Make Money from Your Photography

If you have an artistic eye and a digital camera, you could make some good money by selling your photos online. There are art gallery sites that allow artists to sell their works to people who place bids on them. This can be a good way to get some quick money when you are struggling.

  1. Resell Web Hosting Services

Becoming a web hosting reseller can help you generate a good amount of extra income without much effort. These days a lot of web hosts offer reseller accounts that will allow you to make some money on the side.

When you are trying to supplement your income as much as possible, you will need to explore some of these options. Most of these things can work out well for a majority of people. Remember to keep an open mind, because you never know how much you can make until you try. The internet is one of the best resources for making money in our modern digital age, so you should learn to use it to your advantage.

Categories: General