An asset is defined as something an individual can own that can be sold for money.
There are many examples of different types of assets. Think anything from jewelry or art to even real estate or stocks and options. Different types of assets can generate you different amounts of money.
Let's think about this in our daily lives: we are walking down a street in our city, and we are passing by different stores. We can think to ourselves, "this is a lot of property to manage, huh?" Indeed, each store may sell for a different amount of money. We now know that each store represents a significant investment in property and other assets. From the storefronts and buildings to the goods on the shelves and the equipment inside, each part plays a crucial role in the business's operation. These assets, whether physical like real estate and inventory or intangible like brand reputation and customer loyalty, are extremely important to the business's success and contribute to the overall value of the building and/or business.
We also know that real estate can appreciate or depreciate in value based on other factors. This also goes for all types of assets. For example, if you own a nice watch, the demand or scarcity for those watches may increase over time, causing the price of the watch to increase. Whether you want to now sell that watch or keep it for the long-term is up to you as an "investor"!
Overall, assets are essential for economic activity. Effective asset management enhances business value and growth. Next time you browse the web or walk the Earth, remember that many of the things you see are assets, increasing or decreasing in value over time.
