What is tangible assets? For many a typical answer might be something like a car, or some other asset that you own outright. It may even be your home, which is definitely a tangible asset. While that definition might seem quite broad, it’s actually fairly simple. All assets, both tangible and non-tangible, are physical items that you own and are useful to you in some way.
But, perhaps more importantly, assets are non-physical things that you possess, but which you do not immediately need physical possession of. Some people call these non-tangible assets “non-asset assets”, because you don’t immediately need to own them, to be able to use them. Other people call these assets “liquid assets”, because you can quickly and easily “load” them with money, without having to go through the hassle of physically storing them away. There is a vast difference between the two.
Let’s look at the definition of what is tangible assets? When you’re talking about tangible assets, you are actually talking about stuff that you have control over – a car, for example, is tangible, because you have to pay for maintenance and repairs, but it will still be there when you need it. Liquid assets, by contrast, are those assets which you have to buy (usually with money), but which are immediately available to you, because they are stored within a liquid asset portfolio.
So, what is the difference between non-tangible assets and tangible assets? Well, for most purposes, there is no difference. However, some things are unique to certain kinds of businesses. For instance, in a business where you are dealing with cash, there really isn’t any difference between what is tangible and non-tangible assets. That being said, though, there are many differences between what is tangible and what is non-tangible, especially in the context of companies with significant cash flow. For instance, you can have non-tangible assets like stock which is immediately liquidated when you receive cash, but you can’t do anything with the stock except for sell it.
So, what is tangible assets? Well, generally speaking, tangible assets include your home and automobile. However, what is non-tangible assets? These include things like your bank account, life insurance, and tax liens.
Basically, what is tangible assets? An asset is something that you own and that you have a legal claim to – like your car in the case of car insurance. It can also be something that you don’t own, but which you hold an interest in (like your boat). However, if you don’t pay attention to what is tangible and instead keep putting your money in an investment fund, instead of putting it in your car, your boat might end up in the water and destroyed.
Here’s another example. Your car is worth $2k. You might not want to sell your car at that price because you think it’s worth more than that. But what if you had to pay somebody to look at your car for you, and determine what its value actually was? If you have a good relationship with that person, and he determines that your car is worth much more than you thought it was, then you could legally sell your car to him for a nice profit.
So what is tangible assets? Well, any asset that has a “crystal clear” physical state – meaning that it is what it is when you’re holding it and not what it was when you took it out of storage – is considered to be tangible. But, what is non-tangible assets? Things like your tangible and non-tangible assets blended together. You can take your house as your tangible asset, but you can also take your car as your non-tangible asset.