Assets Make money

Wealthy vs Rich (Part 4)

Having assets is important for building wealth for several reasons:

Generating income: Assets can generate income in various ways. For example, if you own rental properties, they can generate rental income. If you have investments in stocks or bonds, they can generate dividends or interest income. By acquiring assets that generate income, you can increase your overall wealth and financial stability.

Appreciation and capital gains: Many assets, such as real estate or stocks, have the potential to appreciate in value over time. This means that the value of your assets can increase, resulting in capital gains when you sell them.

Diversification and risk management: Owning a variety of assets can help diversify your investment portfolio and manage risk. Different types of assets tend to perform differently under various economic conditions. By diversifying your holdings, you can mitigate the impact of market fluctuations or economic downturns on your overall wealth.

Leverage and borrowing power: Certain assets, such as real estate, can be used as collateral to obtain loans or access lines of credit. This allows you to leverage your assets to access additional funds for investment or business purposes.

Legacy and intergenerational wealth transfer: Building assets enables you to create a legacy and pass down wealth to future generations. This can help create a lasting impact and ensure the well-being of your descendants.

Financial independence and freedom: Having assets provides a level of financial independence and freedom. It gives you the ability to generate passive income, reduce reliance on traditional employment, and have more control over your financial future.

It’s important to note that building wealth through assets requires careful planning, financial discipline, and a long-term perspective. Not all assets guarantee positive returns, and there are risks associated with investing. It’s crucial to conduct thorough research, seek professional advice when needed, and diversify your investments to maximise your chances of building sustainable wealth over time.

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[markambrose]

Exactly, an asset that doesn't produce income in one way or another is a liability because there are costs involved with owning an asset even if it's the opportunity cost

[brandon-leebrown]

Precious metals, bitcoin and stocks. There are bonds but I'm not sure how great an idea that is it the moment. Best to have a mix.

[lisaguiness]

Very true. That's the smart way to do it.

[associate]

I just keep learning so much from you.

[chwayitaramaphosa]

Am not discussing any money related issues again...Its irritating to "some" ppl....Thanks for the advise though, greatly appreciated and Noted.!

[davidc]

I don't know if there's any Nigerian here but honestly. Who knows what assets NGN100k can get you. 😢