Manage your asset portfolio



An asset is something tangible that you own, in other words something of value that you own. You may have already purchased some big ones – a car, a house, even furniture.

These items are an often forgotten part of your wealth portfolio – they have a value if you sell them, and they have a ‘cost’ to replace them if they are damaged. You also need to maintain them to maintain their value.

An important part of managing your finances therefore is to manage what you own – and choose them carefully in the first place!

To determine what your assets are ‘worth’, there are a few things you need to consider:

  • Resale Value: this is how much your assets are worth - that is, if you sold your car for example, how much money could you get for it?
  • Replacement Value: this is how much your assets would cost to replace (and should be the same as their insured value) – if you had to rebuild your house, what would this cost. This could be more or less than the original purchase price and resale value, depending on the asset.
  • Liability: this is how much you owe for the asset – that is, if you purchased the asset by a loan, how much of that own is still owing.

There is an asset record sheet in the ToolBOX under 'Financial Tools' you can use to keep track of your assets.

And don't forget to budget for asset maintenance and insure them against loss or damage.

For information on managing your assets including how to maintain (or at least maximise) their value, check out the pages on assets on our sister site "Your Money and Finance".


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