Question

List your assets in the order of their cash or market value (most valuable to least valuable). Then list them in the terms of their degree of liquidity. Which assets do you think you might sell in the next ten years? Why? What new assets do you think you would like to acquire and why? How could you reorganize your budget to make it possible to invest in new assets?

Answer 1

List of assets according to market value:

1. Jewelry

2. Land

3. Household Property

4. Car

5. Furniture

6. Cash at Bank

7. Cash in hand

List of assets according to degree of liquidity:

1. Cash in hand

2. Cash at Bank

3. Jewelry

4. Furniture

5. Car

6. Land

7. Household Property

Assets that can be sold in the next ten years are car and furniture as they get depreciated in value in time and it is important to replace them so as to sale them at a good resalable value.

New assets such as car, furniture and stocks are to be purchased.

Planning is to be done to reorganize the budget to acquire new assets. Savings are to be increased to ensure purchase of assets in future. Overall expenses should be monitored on regular intervals to ensure efficient utilization of cash.