This means that everything you as a private person own and is valuable to somebody else is an asset. But not every asset is relevant for financial freedom, so I focus only on assets which already generate cashflow or can be traded easily with something who does generate cashflow, like:
- Savings in bank accounts
- ETFs, Shares & Bonds in (depots / brokerage accounts)
- Savings in pension funds
- Savings in retirement accounts (3rd pillar in CH)
- Precious metals (gold, silver, palladium, etc.)
- Loans you gave out
- Privately held companies
- Real estate you rent out
I tend not to focus on assets which are not generating cashflow, do decrease fast in value or are hard to trade:
- Rent deposit
- Shares from early stage start-ups
- Real estate you own and live in*
*This is actually somehow disputable. On one hand, if you own and live in your house it’s not generating cashflow and can not be sold/traded easily because you are living there. On the other hand you could argue that you could move out, sell it and go rent a place at any time. So feel free to do whatever you think is right.
Value of each asset
Every asset which is traded publicly has a actual price based on the last trade, so the value of these assets can be looked up.
For everything else I would take a price you are 100% sure to get for the asset and be rather on the safe side. I don’t try to polish the sum of my assets, since it will be used for calculations I would like to trust.
How to summarise and monitor my assets?
I use a simple spreadsheet where I update the value of my assets over time. You can create your own spreadsheet or use my personal FIRE template.