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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 efficient. So anything that adds net cash to our pocket is an asset, Or something that creates wealth in the long term is an asset. So we all understood the help.

Now, because all of us are so interested in asset building, why not find out which assets we have for long-term wealth creation? So, in this article, we will 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 adds net money to our pocket.

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

10 Best Assets to Build Wealth

1. Business

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 about that. But with that, it consists of a lot of risk, too.

So we have to consider both aspects. You can see that the maximum number of 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 of its flip sides. Business has low liquidity, so you cannot leave any business overnight. If, let’s say, you picked up the wrong direction, Then it’s difficult to get back because businesses have an exit barrier. That’s why studying any company before getting into it is very important.

2. Real Estate

large home 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, once the wealthiest man in America, said, “The major fortunes in America have been made in land.” John D. Rockefeller was an oil magnet with the company Standard Oil.

He used to control 90% of the Oil in the USA. 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, “90% of all millionaires become so through owning real estate.” So, one special point about real estate is that a Maximum number of millionaires are formed here. We’re not talking about billionaires here.

Some may be billionaires as well who run real estate. Still, if we talk about numbers, most people become millionaires because of real estate. Or if we talk about India, then Crorepati.

Of course, real estate is an excellent asset, but we should also know the flip side of all the assets. So, let’s talk about its 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, which involves debt or loans.

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

3. Paper Assets

Paper Assets Stock

On the 3rd, we have Paper Assets. What are Paper Assets? First in this are stocks. Stocks mean if you invest in the share market. As you can see, many people became billionaires in stocks.

The most famous example of this is Warren Buffett. Moreover, we have George Soros, Jim Rogers, and many more. Many people earn huge amounts of money from stocks.

Anyone wanting fixed income or fixed returns can invest in instruments like bonds and corporate FDs.

Mutual funds are another way for those who want to invest in stock markets indirectly. Here, in paper assets, FDs or other deposits also fit like post office savings schemes or different savings schemes.

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

4. Commodities

Commodities Gold

Now, the asset on the 4th number is Commodities. Commodities like Gold, silver, Oil, and many other commodities.

Gold and silver are especially nice commodities that help you in hedging. Mainly when a recession or any downtime occurs, Gold and silver show good returns at these times.

So there might be a decrement in the remaining portfo. So, at these times, gold and silver commodities are beneficial, So we should carefully study commodities, too.

5. Cash

Cash

5th asset is cash. Now, many people will say that what makes sense is to keep the cash at home. There are no returns on it.

I agree with you but understand this carefully. Why do companies like Apple, Berkshire Hathaway, and many giant companies in India like Infosys Reliance keep cash with them?

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

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

If the market has fallen and you’re getting an excellent deal, Then you cannot finalize the deal if you don’t have cash. That’s why money is also significant.

6. Equipment and Machinery

Equipment and Machinery Laptop

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

A 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 an extended period. So we’re going according to our definition of all these assets.

Let’s take more examples. If someone is making videos or films using a phone, we’re making this video. However, we’re using a professional DSLR camera, Which is an asset.

Similarly, plant and machinery are assets for any factory. So equipment is also a good asset for us.

7. Intellectual Property

Intellectual Property book and glasses

Now, 7th asset is intellectual property. Means patents, copyrights, trademarks, and licensing. This means that if you invent a new thing or hold the copyright of any new item, you can patent it; for example, In pharma companies, if they invent any new medicine, 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 in a 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

brand iphone apple

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

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

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

9. People

People

Now, 9th asset is People. Now, many people would ask how people and teams are an asset. They are. Understand it like this: How can Apple produce its excellent products?

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

Nowadays there’s this concept of acquihire. You might have observed this in startups. A company may acquire businesses if any team is good, but the industry is not working.

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

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

10. Content

Content Making Shoot

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

Similarly, films are produced once, but people get earnings for a lifetime. There are Blogs, websites, YouTube channels, and social media platforms; nowadays, people are celebrities on Instagram.

All these people are creating Content, and they’ll benefit in the long term. So, any Content is also an asset for us.

So, these were the 10 assets that can create wealth in the long term. Please tell us in the comment section if you know any other aspects we may not have covered in these. Tell us about your views in the comment section.

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