What is an Asset?

Did you know that finance is more than cash? 🤑

Cash is one type of financial asset 🤯

Anything you own = an asset! 💸

Like a car, house or even your pencil case ✏️

In the investing world, there are more specific “asset classes” 🤔

Financial assets can be divided into four main categories: stocks, bonds, cash equivalents and real estate 💰

Stocks = ownership in a company 📈

Great potential for high returns, but also come with the risk of market volatility.

Bonds = loans to companies or the government in exchange for regular payments 💵

Low risk but low reward.

Cash equivalents = anything that can quickly be converted into cash! 🏦

Often short-term, low risk investments like government bonds.

Real estate = the purchase of property 🏠

It can provide a steady income, but also requires a lots of money upfront 🏡

The more assets you’re aware of, the more you can diversify 📊

Now you understand the characteristics and risks of each asset 🤔