Assets and Liabilities

Understanding your assets and liabilities is a fundamental step in assessing your financial position and long-term wellbeing. 

This guide explains what assets and liabilities are, how they interact, and why keeping accurate records matters when building a financial plan. 

Download the Assets and Liabilities Guide to gain a clearer picture of your net worth and the role it plays in your overall financial health. 

This guide provides a practical overview of how assets and liabilities work together, helping you better understand your financial position. 

Inside the guide, you will learn about: 

• The difference between financial and non-financial assets 

• Common examples of assets include cash, investments, pensions, property, and personal possessions 

• What liabilities are and how they affect your net worth 

• Typical liabilities such as mortgages, loans, credit cards, taxes owed, and overdrafts 

• How assets and liabilities are used to calculate net worth 

• Why some assets can depreciate while others may grow over time 

• How liabilities can impact both financial and mental wellbeing 

Assets are items of economic value that you own. The guide explains how assets fall into two main categories: financial assets and non-financial assets. 

You will explore examples such as cash held in bank accounts, investments, retirement savings, property, vehicles, and valuable personal possessions. 

The guide also explains how some assets can generate income or capital growth, while others may lose value over time. 

Liabilities are financial obligations or debts that you owe. These represent claims on your resources and reduce your overall financial position. 

The guide outlines common liabilities and explains why managing them carefully is essential when planning for the future. High levels of debt can restrict your financial flexibility and affect your wellbeing. 

Some financial decisions are not always straightforward. The guide looks at examples such as mortgages and investing, showing how something that begins as a liability can become an asset over time when managed carefully and with a long-term perspective. 

The guide includes a simple framework to help you list and organise your assets and liabilities. By recording values and calculating your net worth, you can better understand where you stand and identify areas for improvement. 

It also explains why the primary goal of financial planning is to grow assets while minimising liabilities, and how structured planning supports better financial outcomes. 

Founded in 2018, Hoxton Wealth provides advice and support to clients worldwide. With offices across multiple international locations, the group supports a global client base, including expatriates and internationally mobile individuals with assets spread across borders. 

If you want a clearer understanding of your financial position, this guide provides a structured starting point. 

Download the Assets and Liabilities Guide to: 

• Identify and categorise your assets and liabilities 

• Understand how net worth is calculated 

• Gain clarity on how financial decisions affect your overall position 

• Take a more informed approach to your financial wellbeing 

Download the guide to start building a clearer picture of your assets, liabilities, and net worth.