It may be a surprise to learn that cholesterol itself isn't bad. In fact, cholesterol is one of the many substances created and used by the body each day. Cholesterol is a fat-like waxy substance found in the cells of the body. The liver makes all of the cholesterol the body needs each day and circulates it through the blood. Cholesterol is needed to build cell walls, to make substances that help the body digest fat, and to make some hormones and vitamin D. The liver produces about 1,000 milligrams of cholesterol a day. Daily food intake can add about 150-200 milligrams a day to that amount.