Definition:
An asset is something that is valuable and increases your net worth. Obvious examples are stocks, bonds, and money that you have in your savings accounts. Your cars and house may also be considered an asset.
An appreciating asset is something that grows in value. This can include your house, or stocks and bonds. This type of asset makes you money while you hold on to it.
A depreciating asset is something that decreases in value over time. Your car is a depreciating asset. You may also consider any asset that you are spending money in which it is not increasing the value of the asset.
