Defining assets are an confusing topic to discuss. However for people or families looking to create something of value for their later years, it is something that will need careful consideration.
But what are assets? By definition they are things or ideas that put money back into the pocket of their owner. In today's society a lot of people believe that assets are things like their personal residences, cars, boats, jewelry and others items that decline in value the moment of the purchase.
However real assets are things such as rental properties, commodities, stocks, and other investment instruments that will put money into a persons pockets.
The reason most people are poor or living less than they should is because they do not invest in assets. More so they do not focus on putting their money to work. by buying investments instead of buying stuff that declines in value.
Let's take it a step further. Earned Income is one of the highest taxed incomes. Most people try to get ahead financially by earning more of it. The problem with this is that that most people have more taxes taken out when they make more money.
Lets take that same earned income and say that a person commits to just setting aside 10% of it. Let's also say that they do this for a specified period say, six months. By the end of that six months they should have accumulated enough to invest in something that is going to pay them over and over without any extra work on their part.
For instance, someone who in learning about building a business start to look into getting into a mlm business. Mlm's are perfect ventures to get involved in for newbies because they teach a person what it takes to actually build a business from the ground up.
The only difference is the person does not take on the any of the burden of having to pay overhead, of course unless they want to. Mlm businesses also allow a person to see how to build residual income that they work hard for one time then get paid perpetually.
Of course, this only one time of asset that a person can invest in. Someone interested in learning about investing in assets should read and learn as much as they can about the asset before they invest any money. In the meant time, it is highly recommended that person pays themselves first and sets that money aside to invest in their assets.
As a person can see it is all a matter of changing your thinking to achieve an expected outcome. However , it takes time and perseverance as well as knowledge to gain the type of success that will reward a person over and over .