An asset and liability review is a structured check-up of your financial health—basically a balance-sheet conversation for a person or family.
Assets — what puts money in your pocket
Assets are things you own that have value or generate income.
Examples:
- Cash & bank balances
- Fixed deposits, mutual funds, shares
- Gold, real estate
- Business ownership, retirement funds
- Type: growth vs safety assets
- Liquidity: how fast you can convert to cash
- Returns vs risk
- Alignment with goals (education, retirement, wealth creation)
Liabilities — what takes money out of your pocket
Liabilities are obligations you must pay.
- Home loan
- Car loan
- Personal loan
- Credit card dues
- Interest rate (good debt vs bad debt)
- Tenure & EMI burden
- Tax efficiency
- Impact on cash flow
Asset–Liability Review — the real insight
The review checks:
- Are assets growing faster than liabilities?
- Are you using cheap debt (like home loans) to build assets?
- Is high-interest debt silently killing returns?
- Does your cash flow comfortably support EMIs?
- Are future liabilities (children’s education, retirement) properly funded?