Keep it simple stupid!

Recently, I went about asking people financial questions. I was quite surprised to find that most people did not understand the same language that I have come to know in recent years. Words such as liquidity, assets, revenue, capital, net worth etc are not used on a daily basis by the regular Joe. I considered myself a geek for even knowing it. Many might confess that when it comes to financial terms there is need for a dummy's guide. I even find myself lost in conversations about vesting, and life insurance premium regulations. 

For that reason, this blog will be the dummy's guide to financial security. I will keep it simple! Each week, I will post terms such as those described above, with simple explanations for those of you who find finances to be boring and complicated. 

Anyone who has questions may ask them. I am always available to take questions and even encourage that you help me find topics that you may not understand in your personal life. This will both help me understand what the general public understands about finances, and give me a pointer as to where I need to go with this.

Please send questions that you have! I am completely serious! My personal goal is to be an informer. Please allow me to be that for you!

For now, we will talk about the meaning behind an asset. I pulled the following from Investopedia. A resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. 

Okay...do not panic. We will walk through this nice and slow. Let's talk a little bit about what I consider to be an asset in simple terms. I am an avid gamer! Seriously, I can tell you most anything you would like to know about the current gaming generation. My Xbox is an asset. Why might my Xbox be an asset to me? Well, I bought my Xbox with the intent that it would allow me the excitement and bliss of game playing throughout the next 10 yrs. (That is if it doesn't blow up like the majority of others seem to find a way to do) 

To me, this is an asset. To others, it is a useless waste of time. That is why an asset does not have to be anything specifically set aside by some great and almighty committee. If you own something outright, and find that it "will provide future benefit" than it is an asset. Now technically, according to the law, assets are a little more complicated than this. I am sure that the government will not have me include my Xbox as an asset on any of their documents. But we are going to keep this simple with easy to understand examples. 

In your lives, your assets will be anything from a home to a car. Your current retirement savings can also be considered an asset. Anything of worth or value that has a future expected return is an asset.

Is that simple enough? At first I believed that it was, but toward the end I could hear snoring and the fate noise of someone clicking the tiny "x" in the corner of the internet tab.
Keep it simple stupid!