What are assets and liabilities?
Assets
An asset is something you own that has financial value. Assets are either cash or can be converted to cash. Common assets you’ll count toward your net worth include checking and savings accounts, retirement accounts, brokerage accounts, your home, vehicles and anything else of financial value.
Liability
A liability is a debt or outstanding financial obligation. This includes mortgages, car loans, student loans, credit card debt, etc. Liabilities don’t include your monthly bills like rent and utilities unless you aren’t up to date with your payments. In that case, the past due amount would be considered a liability.
