Examples of Personal Assets: Financial Assets and Physical Assets

There are two types of personal assets to consider for your investment portfolio: financial and physical. Financial assets are liquid and non-liquid financial instruments in your name, while physical assets are pieces of property you own. Understanding the different types of personal assets will help you make informed financial decisions, particularly when picking investments.

Checking and Savings Accounts

You might not think of these mundane financial instruments as personal assets, but they are. Financial assets include the cash you have available on hand, much of which is often stored in one of these two types of accounts. You might also have money market accounts or other accounts with your bank, and these are included.

Home and Land

Any property you own, whether developed or undeveloped, should be included among your personal assets. These are physical assets that are represented by the amount of equity you have in them. If you own them outright, then you are in possession of full equity.

Retirement Accounts

Your IRA, 401(k), or other retirement accounts are also listed under personal assets. These are perhaps the most important types of investment accounts because they are designed to support you after you've left the working world.

Antiques and Collectibles

Personal assets are any type of property or financial instrument that can be liquidated. If you found yourself in a precarious financial situation, you could always sell antiques and collectibles in order to generate cash. Therefore, these items are investments in and of themselves, and should be appraised and insured to protect your interests.

Savings Bonds

My parents and grandparents purchased many savings bonds for me while I was growing up, and some have yet to mature. Others have passed maturity and should be cashed in. Whatever the case, savings bonds are personal assets, and after you cash out you can always reinvest the funds to make more money from the proceeds.

Art and Jewelry

These items are personal assets that are often purchased for the simple purpose of enjoyment. However, they should also be protected and considered assets. Art and jewelry are often handed down through generations of family members or sold during periods of turmoil.

Stocks and Bonds

Those financial instruments that are usually thought of as investments are also personal assets. They can be purchased and sold for the purpose of generating income (or preventing losses). Mutual funds are also financial assets.

Purpose of Personal Assets

There are many other examples of personal assets, and it is important to keep lists of these items so you can paint a realistic portrait of your financial situation. Some of these items (such as homes and antiques) serve dual purposes, but they can also be used to create your ideal future through wise investments and dedicated savings.

Personal assets can also be used to create a balance sheet that outlines income, static personal assets, income-generating personal assets, and expenses.