What are assets? — The question that will make you rich.
It is far too common that we assume our house and our cars to be our greatest assets. According to investopedia.com an asset is “a resource with economic value that an individual… owns or controls with the expectation that it will provide a future benefit. (Barone, May 2020) Ask yourself again, is your house and your cars your greatest assets? Are they even assets at all? It is easy to think that an asset is simply anything of great monetary worth, of which and house and a car qualify, but according to the financially literate (those people that had the potential to retire at the age of 40 but keep working to pass time) this is not the case. Assets are things like stocks, bonds, mutual funds, land, property, etc…things that you “own or control with the expectation that it will provide a future benefit.” When buy assets and organize your finances so that your assets outweigh your liabilities (FYI, this would be your house and your car, because they are actually costing you money on a regular basis) then you are “wealthy” as per the definition given by Robert T Kiyosaki in his book “Rich Dad, Poor Dad.”
Another tip to help on your path to wealth. You may be employed as a secretary or a draftsman, but you are also a business owner. Any assets that you own are your property and are generating real income for you, often passively (without you having to exert any additional effort). This is your business. If you owned a traditional business and had employees relying on you for a paycheck to feed their families you would not allow your business to be overladen with debt and unnecessary expenses so you couldn’t provide. Why would you treat your own finances (business) the same way? Clean up your finances. Get your assets straight. Get rich.
Barone, A. (2020, September 16). What You Need to Know About Assets. Retrieved October 09, 2020, from https://www.investopedia.com/terms/a/asset.asp
