If there are easy ways to Build assets with little money, will it not be great? Nevertheless, asset building is a very important priority. Irrespective of its difficulty or ease, one must start soon enough the process of building assets. It is essential and cannot be delayed much. How to do it? Invest money and buy assets.
But throwing money here-and-there in the name of investing is not enough. So what is the right way of investing? Different people invest their money with different priorities. Some people invest money for capital appreciation. Others invest money to generate income. There are some who also invest just to lock their money (from getting spent needlessly). More people these days are accumulating “income generating assets“. Some experts even say, this is the easier way of building assets.
#1. Invest to accumulate assets.
Why we normally invest money? Mainly for capital appreciation (high returns), right? But investing money with such motives has rather shorter lives. To give a longitivtiy to your investment journey, fix a sturdier goal as goals focused only on returns loses its steam too soon.
What investors should focus on, instead of high returns? The focus should be on the “knowledge” to identify great assets This way one can accumulate more good assets. High returns will happen as a by-product of good asset accumulation.
#2. Accumulate income generating assets.
Now we know that investment must be done with the objective of asset accumulation, but which assets to accumulate? Good investing (for many) is, accumulation of income generating assets. These are such assets which people hold forever. This is unlike stock earning trading, where focus is more on early-selling and quick-money making. Good assets generate money on its own. Hence one must focus on buying such assets.
#3. Build Assets for Financial Independence.
Investing money for accumulating assets is a nice goal. Investment has a more deeper meaning. It cleverly deals with lots of prejudices that we carry in our mind. It helps us to be delay gratifications. It helps us to practice frugality. Investing helps people to plan their future etc. There are huge benefits of investing money. Sum-total of all those benefits are so huge that we often compare the process of investment with spirituality. We know this is an overstatement, but for us investment is like preaching a wiser motive. What is this wider motive? Let’s call it “financial independence” While investing money, be ready to take a LONGER ROUTE. Forget about investing, forget about assets, forget about money-making.
#4. Financial independence and Job Dependency
How many of us love our job? But if we do not love our jobs, why we continue lingering on to it? Because there is no choice. To continue to earn money, doing job is a compulsion. This is where the theory of financial independence find its importance. A financially independent person need not do a job he doesn’t like. How? A financially independent person has enough assets in his investment portfolio. These assets generates income which can support the standard of living. This stage can also come in our lives. Only thing that we have to do is to accumulate income generating assets.