Going Back to Basics

After wrapping up our series on security last week, we’re going back to the basics. What are the everyday topics we all need to understand to have a simpler, healthier financial life? What would we need to learn if we were starting from scratch?

We’re going to start with something good; assets. An asset is essentially anything you own that has a positive value: cash in a savings or checking account, stocks, bonds, a car, a home, even a sweatshirt if you think it’s worth something.

It may help to also define what isn’t an asset: your credit card balance or mortgage aren’t assets (they’re something you owe, not something you own.) There are also “intangible” assets like a college degree, professional certification, or the reputation of being a hard worker. These don’t have an easy to define dollar value like a stock does, but they clearly do have value. Generally, you want your assets to grow over time – that’s how to build a safety net and work towards your future goals. There are different ways to go about that; we’ll cover those soon!

Is there a money issue you’ve always wanted to know about but been afraid to ask? Let us know and we’ll include it in a future Bright Idea.