What is an example of an asset?

An asset is defined as something of value that is owned by an individual or entity and has the potential to generate economic benefits. A car owned outright fits this definition perfectly, as it is a tangible item that can be used, resold, or leveraged for financial purposes. The ownership of the car contributes to a person's net worth, as it is a resource that can provide utility or financial return over time.

In contrast, the other options listed do not qualify as assets. Monthly rent payments represent a recurring expense rather than ownership. A personal loan and credit card debt represent liabilities, or what the individual owes, rather than what they own. Therefore, owning a car outright serves as a clear example of an asset, highlighting the distinction between ownership of valuable items and obligations.