A bare piece of land does not generate an income for its owner. So you may own valuable property and yet you can’t pay rent or urgent medical bills. Many Ugandans find themselves in this predicament. They are asset rich but cash poor. Don’t get me wrong, there is nothing wrong with owning property. You just have to sweat your assets.
Sweating your assets means finding ways to generate income from your assets. For example, you can grow crops and trees on your farmland to generate an income. You can build rentals and earn an income. You can lease the land to someone else to utilize the land and pay you a rental.
If you’re asset rich but find yourself struggling to pay bills you may need to sell some of the hard assets and buy other liquid assets like unit trusts and treasury bills. For instance, if you are approaching retirement you can sell some property and buy an annuity which will pay you a monthly income for life.
It is tempting to keep on accumulating idle assets because of the culture we live in. However, there are several other options to own liquid assets which can also generate a regular income for their owner.
So make sure you’re sweating your assets.