Building wealth and investing is a kind of thing that everyone must practice. These are termed as assets. Assets are termed as any useful or economic resources of the person that provides financial aid to them. There are many ways to generate assets for you to maintain financial stability. So buckle up, we are gonna learn about few assets that can make you rich or are making people rich all over the world.
Top 15 Assets That Can Make You Rich
The first and foremost thing is very basic, which is cash. This is a priority and having some liquidated value is always good for certain unforeseen circumstances. Also, it can get you higher returns straight from cash deals.
2. Real Estate
This is definitely a favorite thing on the list and probably the easiest way to make money. Imagine having money everyone month in the form of rent without even doing anything, how cool is that? The demand is constantly increasing and the price for the real estate is directly proportional to it.
When the business or even the government is in need of money, they issue something called bonds. Through these bonds, the interested investors buy it and the business or the government pays them the money every month. If you are looking for a low-risk investment, then you can finally opt for it.
Imagine yourself owning a percentage of a publicly-traded business whose turnover is probably in billions. Buying shares of business will make you the owner of that percentage and you will earn an interest depending upon the growth of the company.
5. Mutual Funds
Mutual funds allow you to buy the stocks of an entire lot of the companies as a whole. It is considered safer than just investing in 1 company. Also, you might have heard several times that mutual funds are subject to market risk too.
If you have invented anything, be it a device, an app, or technology, then you can patent that and the companies will pay you before using it. Having just a single patent in your name can make you rich.
Just like patents, trademarks help you protect your words, phrases, symbols, logo. It is a big deal and if you have a big name that holds a big value in the market, then you can license it commercially. People will pay you before using it.
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8. Brand & Goodwill
A brand and its reputation are everything and it generates the goodwill which makes the customer attached to it. It is not easy to make goodwill and this also holds the monetary value which is usually a huge amount. It is an intangible value of a certain company that makes them reputed.
Anything that makes you generate money out of it is an asset or that makes you help make money in your professions. For example, a laptop is an asset for a businessman, a camera is an asset for a photographer, a car is an asset for a car driver. But a car isn’t an asset for someone who purchased it for personal purposes, it is a liability. So, make sure to understand the difference between these before investing.
Yes, you heard it right. People are an asset too. It’s the people who make a company an empire and it’s the people who build them from 0 to 100. You might not understand the importance of the people who work for you until they leave you. For example, Indira Nooyi is an asset for the company Pepsico.
11. Raw Materials & Commodities
These things have the most fluctuating value in the market. Smart people buy these when the price is low and sell it when it generates higher value in the market. It might be anything like gold, crypto, currency, oil, vintage cars, luxury watches, arts, etc.
12. Books, Songs, Content, Or Information
It might take you a year or two to write a book but once you are done with it, it will help you generate a good amount of money. Just think about JK Rowling, the writer of the famous Harry Potter series. The same goes for the song or digital content. The concept of creating something once by putting your heart and soul into it will benefit you for a very long time.
13. Unique Rights
These are the kind of rights that counts as an asset and helps you generate money. For example, Churches in America function as a business and they have their merch and products that cost money. Also, they all are exempted from the tax.
Royalties are something that people pay the owner before using their product or patent or work. For example, Friends is a very famous TV series that ended almost more than a decade ago and the actors of that show still make money in the form of royalty. It applies to all those things that make you intellectual property.
15. First Mover Advantage
This is regarded as an asset. The best example of this is, Netflix, Spotify, Apple store, Airbnb. This is also considered a way that helps you make money for the very long run.