Firstly , you need to know the difference between Assets and liability. Assets makes you money, liability makes you spend money.
Most of our communities are interested in building wealth. This Article is not focused on ways to make money but what you do with the money coming in to fortify your wealth.
Six Assets that are making the rich richer:
1. Cash reserve: People reserve cash in banks for many reasons which includes ;(1) bank interests over the years (2) they can get higher returns from cash deals (3) you can lend money for higher interest rate .
2. Real estate investment: this is a big one. Two reasons why real estate investment is a big shot. Money is coming in every single month or year with minimum amount of work.
Appreciation– the demand for a place to live never stops increasing. The demand for shelter is constantly going up and will forever remain that way making real estate the best investment of all time.
In terms of Estate building you have:
- Residence building: people live in your property and pay you rent.
- Office building: people work on your property and pay you rent.
- Commercial building: is a property that is used by business professionals, medical and dental professionals, tech firms, and more.
- Land: which can be cultivated, developed or even left as in Appreciation.
3. Bond: What is bond? A bond is a debt obligation. Investors who buy corporate bonds are lending money to the company or the government issuing the bond. In return, the company or government makes a legal commitment to pay interest on the principal and, in most cases, to return the income when the bond comes due, or matures. It is a safe investment because it is usually backed with the government or a trusted company.
4. Stocks: stocks are not as complicated as you’ve been made to think. It’s an easy way to own a percent in a publicly traded business. If a business issues 10million shares and you own 1million shares . This means you 10% owner in the business. This has given Access to common people into owning stake in lucrative companies with very low Entry barriers.
5. Patents: when you invent something new you can protect your invention by filing a patent. It’s a document that certifies you as the inventor and describes what your inventions does and by doing so, companies have to pay to use your invention and if they don’t you get to sue them. Patent is extremely powerful and a single patent can make you Extremely rich.
6. Brands and goodwill: There are certain difference between brand and goodwill but both are extremely important to any brand, business or company.
Brand will is the effort the company is making to push a particular image of itself into the market place while goodwill comes from the way the company treats it’s customers and how grateful people are the company exists.
