You may know that an asset is anything of value owned by an individual or a business. Assets can include cash, real estate, investments, vehicles, and valuable personal property. Assets are important because they contribute to an individual’s or business’s overall wealth and can be used as collateral for loans. In finance, assets are classified into categories like current assets (cash or items that can be quickly converted to cash) and fixed assets (long-term holdings like property). Tracking assets helps individuals and businesses measure financial health and stability.