Your assets that include your whole properties and everything related to your financial are your treasure. Although you are pretty sure that all you have is well managed, this would be wise if you do some evaluations when the intention to add the assets comes across into your mind. This way, you can figure out the net wealth you possess.

What it means with net asset or wealth is the result of the total wealth minuses by total liability. To be more specific, wealth is all materials you hold that economically have selling value.

For instance:

  • bank balance, including savings, deposits, and current accounts;
  • market value of investment assets that include bond, mutual funds, and shares;
  • market value of precious metals like gold;
  • market value of motor vehicle such as cars and motorcycles;
  • market value of your property;
  • cash value of life insurance;
  • market value of household-ware;
  • market value of household furniture.


Since the total liability is the part that affects the calculation of your net wealth, you may need to know the meaning of debt. It is the overall remaining loan covering the main and the interest. The examples of debt are:

  • Short-term liabilities (one year is the maximum period);
  • Middle-term liabilities, 1- to 5- year liability;
  • Up to 5- year long-term liabilities.


To fulfill your dream in increasing the current assets, there are some vital steps you can consider. First off, start investing with 10% of your income, this is the minimum amount suggested. Secondly, determine the target of investment you choose. The targets can be varied depend on each investor’s purposes. Maybe your investment is aimed as educational fund, future home purchasing, or family vacation.

Thirdly, determine the period of the investment is necessary. You can estimate particular investment’s period by considering when the fund will be needed, for example the educational fund will be needed 10 years ahead. Fourthly, defining the instrument for your investment based on the period needed is also important. This step acquires your personal investment portfolio.

Next, secure your investment by purchasing life insurance to give adequate protection over your financial assets. The type of life insurance recommended is Yearly Renewable Term, the product which will give you the financial responsibility without involving the investing or saving factor. Last but not least, make sure that you conduct regular monitoring over the fourth step to see the development of the investment fund as well as the target you are about to achieve.

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