Checking accounts, savings accounts, money market funds, and money market deposit accounts are very liquid. You need some liquid assets for emergencies. How much you need will depend on many factors-the likelihood of loss of income through unemployment, layoff, or illness, and the family's health and property insurance coverage. Some assets do not appreciate, but are income-producing assets. Examples are interest-bearing checking accounts, savings accounts, money market funds, money market deposit accounts, time deposits, and bonds.
Examples are automobiles, home furnishings, and appliances.
Also review your liabilities. It is best not to owe more than the item is worth. These are things that increase an individual's knowledge, skills, or well-being. Education and medical and dental care are examples of investments in human capital. They do not show up as financial assets on the net worth statement, but they do show up on the net worth statement as debts or decreased savings.