10 Best Assets to Build Wealth & Can Make You Rich

In this article, we’ll take the definition given in the rich dad poor dad by Robert T. Kiyosaki Because it is a very practical definition. So anything which adds net cash to our pocket is an asset Or something which creates wealth in long term is an asset. So we all understood the asset.

Now because all of us are so much interested in asset building, So why not we find that which are those assets in which we have long-term wealth creation? So in this Article, we’re going to talk about 10 such assets.

So first of all, let’s understand the definition of assets in more depth, And we’ll follow that throughout this article. So we already discussed that an asset is something that adds net money in our pocket.

Now, we’ll take anything in which our time, effort or investment is for once or a short period of time, But it’s results or returns are coming for long term. That means for 10-15 years, we can get cash from it. So we’ll talk about these kind of assets in this article.

10 Best Assets to Build Wealth

1. Business

So the first asset is Business. We all know that we can earn a lot of money in business only and there is no doubt in that But with that, it consists of lot of risk too.

So we have to consider both the aspects. You can see that the maximum billionaires are formed through their businesses Whether it’s Jeff Bezos, Bill Gates In India, Mukesh Ambani, Radhakishan Damani, Tata’s, Birla’s and many more examples.

But we should also be aware about it’s flip sides. Business consists of low liquidity so you cannot leave any business overnight. If let’s say, you picked up wrong direction, Then it’s difficult to get back because there’s exit barrier in businesses That’s why it’s very important to study about any business before getting into it.

2. Real Estate

Now here comes our 2nd asset which is Real estate. Firstly I would like to say 1-2 quotes on real estate. John D. Rockefeller, who was once the richest man of America said, “The major fortunes in America have been made in land” John D. Rockefeller was an oil magnet and he had a company standard oil.

And he use to control 90% of oil in USA at that time Second, his contemporary at that time was Andrew Carnegie Who made a huge business empire in steel and his company was US Steel.

He also said that, “90% of all millionaires become so through owning real estate” So one special point about real estate comes out here is that Maximum number of millionaires are formed here We’re not talking about billionaires here.

Some may be billionaires as well who run businesses of real estate But if we talk about numbers, then most of the people become millionaires because of real estate Or if we talk about india then crorepati.

Of course real estate is a really good asset but we should also known the flip side of all the assets. So let’s talk about it’s flip side. Liquidity is low in real estate as well.

So if you suddenly need money then it might be the case that you won’t be able to sell that real estate easily. Secondly, real estate is bought mostly on leverage that means it involves debt or loan.

When loan is involved in any asset or investment, So the returns also get multiplied but with that, if there’s any loss, Then it also get multiplied. So we should know this leverage effect also.

3. Paper Assets

On 3rd, we have Paper Assets. What are Paper Assets? First in this are stocks. Stocks means if you invest in share market. If you’ll see, there are many people who became billionaires in stocks.

The most famous example in this is Warren Buffett. Moreover, we have George Soros, Jim Rogers and many more, you can find about them Many people earned huge money from stocks.

If anyone wants fixed income or fixed returns, Then they can invest in instruments like bonds, corporate FD’s.

Mutual funds is another way for them who wants to indirectly invest into stock markets. Here, in paper assets, FD’s or other deposits also fits like post office savings scheme or other different types of savings schemes.

But they’re not much recommended because the returns over there are not as good which can beat the inflation.

4. Commodities

Now the asset on 4th number is Commodities. Commodities like gold, silver, oil and many other type of commodities.

Gold, silver are specially really nice commodities which helps you in hedging. Specially, when recession or any downtime occurs, Gold and silver shows good returns at these times.

So there might be decrement in remaining portfolio So at these times, gold and silver commodities are very helpful So we should carefully study commodities too.

5. Cash

5th asset is cash. Now many people will say that what makes sense by keeping the cash at home, there’s no returns on it.

I absolutely agree with you but understand this carefully that Why the companies like Apple, Berkshire Hathaway and many giant companies in India like Infosys, Reliance keeps cash with them.

They keep cash so that if they gets any opportunity for future expansion, Then they should have cash to avail it. Or if they get any business deal, they should have cash to execute it.

2nd benefit of cash is that if you go for the execution on any deal Whether it’s for real estate or even of stocks.

If the market is fallen and you’re getting a nice deal, Then if you don’t have cash, you cannot finalize the deal. That’s why cash is also very important.

6. Equipment and Machinery

Now our 6th asset is Equipment and Machinery. For example, Car can be such equipment. If anyone is using it as a taxi then it becomes an asset for him. If anyone is using tractor in the farm, it becomes an asset.

Laptop becomes an asset if it’s used for work because investment In all these assets, investment is for once, but the returns are for long period. So we’re going according to our definition in all these assets.

Let’s take more examples. Like if someone is making videos or films using a phone For example we’re making this video However we’re using a professional DSLR camera So that is an asset for us.

Similarly plant and machinery are assets for any factory. So equipments are also good assets for us.

7. Intellectual Property

Now 7th asset is intellectual property. Means patent, copyrights, trademarks, licencing. This means that if you invented a new thing or hold the copyright of any new thing, Either you can patent it, for example, In pharma companies, if they invent any new medicine then they patent it.

And they get the results of that single invention for years. Similarly, we all know about Harry Potter, J. K. Rowling wrote that series And the royalty of all the movies based on that series goes to J. K. Rowling till now.

So she did the hard work in writing those books only once but she’ll get the returns lifetime. Similarly, we all know the Marvel characters and the movies are made on them too So if you have copyrights or licensing rights to anything, you get its benefits for your whole life.

8. Brand and Goodwill

Now 8th asset is Brand and Goodwill. Which may not be counted in financial terms but it has a great value. Now we shop things online but we don’t trust any brand easily.

We generally visit Amazon, flipkart sites or few more trustworthy sites for shopping. People buy Apple products even though they are so expensive Why they buy those? Because we trust that brand and consider it’s products to be good.

That’s why we buy those products. In India also, we have such brands. Different brands for different products There are brands in Tata’s, in Godrej, in Reliance.

9. People

Now 9th asset is People. Now many people would say that how are people and team an asset? Absolutely they are. Understand it like this How can apple produce their excellent products?

Because they invested in good people. They pay them good salaries. That’s how they produce those excellent products. So team is extremely valuable in all these tech companies and it’s not only about tech companies, Team is very important in any organisation.

Nowadays there’s this concept of acquihire. You might have observed this in startups. If any team is good but let’s say that business is not working out, So a company may acquire such business.

However, that company might have thought to hire the employees separately But if they buy the whole business, the team goes to them as it is and the process becomes shorter.

So we need to understand that the people who are giving their time and efforts are assets for us.

10. Content

And here comes our 10th and final asset which is Content. Content like if anyone produces a song, then that song is produced once but That person have it’s lifetime rights and he can earn money from it. If anyone writes a book, it’s written once but the royalty is for the lifetime.

Similarly films are produced once but people get earnings for lifetime. There are Blogs, websites, youtube channels, social media platforms, Nowadays people are celebrity on Instagram.

All these people are creating content and they’ll get it’s benefits in long terms. So any type of content is also asset for us.

So these were the 10 assets which can create wealth in long term. If you know any other asset which we may have not covered in these Then do tell us in the comment section. Tell us about your views in the comment section.