As Robert Kiyosaki said –
“Assets”-defines as anything that puts money in your pocket.
“Liability”- is anything that takes money out of your pocket.
10 Assets That will Make Money for you-
1. Business – Requires thorough research before investing. Returns depend on various external factors which can’t be controlled(e.g., Covid)
Funds – Low liquidity(High entry/exit barrier)
Risk vs. Return- Very High-risk investment, Can give unlimited Long-term returns or put you under debt-trapped/bankrupt.
2. Real estate – Requires proper research. Properties can be used as rentals. Lands can be used for agriculture/plantation/woods/etc
Funds – Low liquidity(High entry/exit barrier)
Risk vs. Return – If bought using loans/debts, then returns get highly reduced. Provides Long-term Returns
3. Paper Assets – Stocks/Bonds/Corp.FDs/MFs/FDs/
Funds – Instant/Medium/High Liquidity (Low entry/exit barrier)
Risk vs Return – Small/Medium/Long-term Returns. Risk depends on individual decision.
4. Commodities – Gold/Silver/Oil/Metals/Agricultural food/Livestock’s
Funds – Medium Liquidity (Low/Medium entry/exit barrier)
Risk vs Return- Medium/Long-term Returns. Helpful during times of crisis.
5. Cash- Very useful for grabbing any opportunity or in any situation. A must-have recommendation. Also referred to as bank balance.
Funds – Very High Liquidity (No barrier)
Risk vs Return – Instant/Fast Returns. Put in the bank for reducing risk.
6. Lending – Peer to peer(P2P) Lending/crowd-lending/loans. Lending can be done using anything money/car/equipment.
Funds – Medium/High Liquidity (Low/Medium entry/high exit barrier)
Risk vs. Returns – High returns. Involves a very high risk as borrowers can choose to haggle.
7. Equipment and Machinery – Any item, when used to generate wealth, will come in the asset category.
Funds – Medium/Low Liquidity (Medium/High entry/exit barrier )
Risk vs Return- Medium/Long-term Returns. Needs maintenance
8. Intellectual Property – Trademark/Copyright/Patent/License
Funds – One-time investment (Medium/High entry barrier)
Risk vs Return- Life time return/royalty
9. Brand and Goodwill – Requires a very long time in gaining trust. Various factors involve.
Funds – Requires large and continuous investment. (High entry barrier)
Risk vs. Return – High risk during the initial stage. Lifetime/Long-term Returns.
10. People – People are your greatest valuable assets. “You don’t build a Business. You build people, and then people build the Business”- Zig Ziglar.
Funds- Requires large and continuous investment. (High entry barrier)
Risk vs. Return – Needs proper management and continuous improvements. Medium/Long-term Returns.
