Quicken asset accounts help you track the value of your assets that have a monetary value. For example, your home or your car. This helps you know your total net worth.
Liability accounts help you track the value of liabilities like a car or home loansloan. When you track these in Quicken, their value gets rolled up into your net worth calculation, giving you a complete picture of your total net worth.
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Important: This liability amount has a negative impact on your total net worth. Your net worth value is incorrect as the value of the associated asset (home, car) is not entered in Quicken.
Example: Let's consider this with an example. Suppose you bought a home with the loan amount of $25,000. You entered the loan amount ($25,000) in your liability account, which will negatively impact your total net worth. Against the loan, you have a home, which has a considerable value. Ensure that you maintain the value of your home in an asset account so that you see your accurate net worth.
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