What are "personal assets"?

Personal assets refer to items of value that an individual owns, which can include a wide range of possessions. These may consist of cash, real estate, vehicles, jewelry, retirement accounts, and other valuable items. Understanding personal assets is crucial for individuals when assessing their overall financial position, applying for loans, or planning for retirement.

Items of value represent the personal ownership that can contribute significantly to a person's net worth. This differs from concepts like financial liabilities, which refer to what an individual owes, or specific types of investments and inventories that typically relate to business operations rather than personal finance. Recognizing personal assets is fundamental to sound financial planning and management.