Wealth Creation: Part 6
The strategy that I use to create wealth is, I invest in assets that appreciate and/or earn revenue, while I _________ (fill in the blank).
Now, I believe that words are important, so I choose them carefully. There is a lot to unpack in the above sentence. For instance, if all you take away from it is that you should buy assets, chances are you are not learning anything new. So, let’s learn together by breaking down the entire sentence so we understand the strategy before dismissing it, or trying it.
What is an appreciating asset? Appreciating assets are those which increase in value as you own them. Examples are:
Private Real Estate
Rental Real Estate
Rare Art
Fine Wine
Farmland
Small Businesses
Cryptocurrency
Index Funds
Your Business
Stocks
Commodities like Precious Metals
Iconic Sport Collectibles
Alternative Assets like Exotic Automobiles
Various Financial Instruments like:
CD’s, Bonds, High Yield Savings Accounts, etc.
This is not a comprehensive list, but it covers enough ground for our purposes.
What do I mean when I say - Assets that earn revenue? Simply put, not all assets appreciate (increase in value). Meaning, a lot of assets decrease in value for the day you purchase them. Think most automobiles and boats. However, if you acquire an asset that can generate enough revenue to eventually pay for itself AND generate a profit - Eureka, you’re still creating wealth! So yes, even depreciating assets, if utilized properly, can create wealth.
I don’t need to provide you with a second list of depreciating assets that earn revenue, cause it’s pretty much the same list as above, with one fun addition. You can include any asset that can be rented to someone who will pay you money to use it either short term or long term. This includes pretty much all forms of transportation, lodging, and equipment that people need, cause they don’t own the asset needed.
This new revelation should entice those of you that were creating the false narrative in your heads that I was writing this post only for people who have tons cash lying around to buy big ticket assets, to keep reading. Any asset that can be monetized, can be used to build wealth.
Now, on to the last part of my strategy. To review, I invest in assets that appreciate and/or earn revenue, while I ___________ (fill in the blank).
Why did I insert this last part? Because, 99% of people will dismiss this strategy because they think they need to stop doing what they are currently doing, or worse, what they dream of doing, to play this game.
This is what is known as a limiting belief. The definition of a limiting belief is a false belief. And false beliefs are typically what prevent you from getting what you desire, which in this case, is wealth. If this pisses you off, I’m sorry. I’m just holding up a mirror.
You can insert virtually anything into the fill in the blank section and STILL get in the game of creating wealth via asset ownership. You can even insert other wealth strategies already covered in my earlier posts, that aren’t currently working for you, but you stubboringly want to continue trying! 👀
While I……….save, climb the corporate ladder, become an expert, create my dream company, and inherit.
Or, you can put in my favorite, which is, while I sleep!!!!!
Tomorrow I will share info my favorite asset to invest in - real estate.
