Everybody should strive to acquire the following assets as they build up their wealth. You want to posses assets which put cash into your pocket or appreciate in value.
- Cash – Cash is king. Having cash affords you the opportunity to tap into opportunities quickly.
- Shares – Over a very long period of time shares are the best performing asset class. Own shares in solid businesses which have been around for a long period of time and which have good growth prospects.
- Treasury bills/bonds – The wealthiest people have some government bonds in their portfolio. These assets are backed up by the respective countries and are generally considered to be safe. Of course this all depends on the stability of the economy.
- Unit trusts – These are collective investment schemes. Different people pool resources which are managed by a fund manager.
- Land – Land is the only unique asset which doesn’t depreciate. It is a solid stable investment.
- Buildings/rentals – All rich people own property. It is very difficult to steal someone’s building. Buildings usually last for generations and are a good store of wealth.
- Information assets – The internet has made it possible to own and earn money from information assets like, books, websites, blogs, etc.
- Brand – Your personal brand is the biggest determinant of your earning power. Build a brand of credibility and trustworthiness.
- Equipment – Any equipment which helps you to earn money is an asset. It could be a bike, truck, machinery, etc.
- Business assets – Any kind of business will follow in this class. The richest people in the world own business assets.
Anyone can learn how to build a portfolio of assets. This is the only guaranteed way to achieve financial independence.