The rich only buy or invest in assets that make them money. We already exposed the big secret! But do you know that they also have an Invisible Money Growing $uperpower? 👠
Why Are Assets Important?
Building Wealth is about learning to buy & create assets intelligently:
Get Financially Savvy (you're at the right spot 🤗!)
Buy Income Producing Assets
Build Wealth Through Cashflow
Okay before jumping into the specifics here we strongly advise you to read the secret basics of what assets really are. It’s a quick 3 min read. You know you have to crawl before you can walk or run. Now go!
Even though we obviously, absolutely love RealEstatz by far. We encourage you to truly understand all the implications, benefits & merits of ownership and pay attention to the 3 most known faces of money and all 4 Income Producing Assets!
Please understand that every single one of the Assets has it's own advantages and setbacks! To figure out what the best combination is for you, you'll have to at least have a basic understanding of all 4 of them!
Business
With "Business" we implicitly refer to a business bigger than self-employment, where employees produce the majority of the revenue and where ownership is mostly: leadership. You have to be working at the business not in the business.
The two areas that most affect Businesses: Tax and Leadership
The Top Financial Liability For Everyone Is Tax. The Ability To Keep Most Of Your Earnings Will Determine Your Wealth Growth Potential 💰.
Many countries offer tax structures with advantages & incentives to Business Owners in almost any area. Why? Because they pay for campaigns and they lobby for legislation that favors their interests.
Business is about organizing people and their talents. As a strong leader owning a business allows you to leverage the efforts of other people. Instead of a one girl's shop you now have other people's education, experience, energy, effort, expertise well everything! That's how you see A students working for C students. Imagine the cash flow & growth potential.
Real Estate
Real Estate is so attractive to investors because of it's ability to use debt as leverage to buy into bigger investments than with your initial capital, also known as OPM (Other People's Money).
With Real Estate you have control and the power to increase the value of your properties with (forced) appreciation (follow the make money tread for more on this) and clever TAX-FREE refinance opportunities! (details in keep your money tread).
Commodities
Commodities are those essential things we need in our everyday living like Food, Fuel and Metals. The great thing about Commodities is that they retain their value and are mostly used for Hedging Wealth. In other words to protect your money from inflation!
The Biggest Money Liquidator is Inflation. A fancy word to describe the decreased purchasing power of a currency that results from the loss of its value due to rising prices (inflation) 😵.
Remember Tax limits what you can keep of your earnings. Inflation than chips away from what you are left with after tax through raising prices. So your goal as an investor is to limit your taxes & hedge against inflation. Legally, with asset protection!
Because commodity prices typically rise when inflation is accelerating, they offer protection from the effects of inflation. Few assets benefit from rising inflation, particularly unexpected inflation, but commodities usually do! They can therefore also be seen as a favorable mirror trade market for Paper Asset's.
