What is an Asset
An asset is usually something that has the characteristics of helping or assisting you.
For the terminology used on this blog, this can mean one of two things.
Either a skill or attribute that produces positive results…
If you are a smart person, your inteligence is your asset as it helps you invent, find solutions, create ideas, therefore achieve positive things.
Another example of an asset is your physical condition if you are an athlete.
Having a good physical shape allows you to do good at sports, make money and be successfull in the sport you apply it.
So that qualifies as an asset.
In business an asset is usually considered something that allows you to make money.
There are different examples of this and why something is considered an asset.
If you buy 3 trucks for your import export business, those trucks are consiered assets as they allow you to make money by using them for what is their purpose.
Contrary if you buy 3 trucks but don’t use them for business, they are considered a liability <–about which you can read more here.
A different example of assets are stocks or properties which you buy at some point and then later make a profit by reselling them at a higher price.
Another option with properties is also to buy them and rent them out for monthly income.
These are just a few examples, but hopefully they make a good point about what is an asset.