NEW BERLIN, Ill. (TheStreet) -- When it comes to gauging financial health and safety, most advice is about financial assets. There are really several different kinds of assets to consider:Personal assets. Clothing, furnishings, automobiles and jewelry fit into this category. Before we even get it home, most of this "stuff" decreases in value to less than half what we paid for it.
|When it comes to gauging how your finances are doing, there are several kinds of assets to consider.|
- Financial assets should grow faster than personal assets. If not, your focus is in the wrong place and trouble is on the horizon.
- Employment assets should be given discounted consideration versus financial assets. Laws change and employers go bankrupt all the time, making these assets more uncertain.
- Real assets may grow faster than financial assets, but you may be heading for a problem in the future if you're forced to sell your home to provide funds to live on. The recent housing downturn is teaching a valuable lesson. If your financial decisions revolve around reducing your mortgage or increasing your financial assets rather than buying or paying for personal assets, you're on the right track.
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