24.3.14

Why the rich get richer by utilizing these 3 Assets


Have you ever wondered why the rich keep getting richer and the poor get stuck in a rat race (the pendulum circle rats keep running in)?

This is especially so when they have the same 24 hours as you do? It is because they utilize leverage in an efficient manner such that they can accomplish much more in the same amount of time that you have.

3 types of assets you see the rich own:

1) Businesses - they leverage on people working for them while they think on how to expand the biz to make more $$!

2) Properties - they leverage on people paying rent to help them "pay" for their properties (after paying the downpayment; the property is theirs after the instalments are paid fully by their tenants!)

3) Stocks - They leverage on the skillset and capability of the companies to continue growing and as a result, they pay out dividends and capital gains back to the investor~
An example is how Warren Buffett really owns businesses but not trade on them.

Thou shall remember: Price is what you pay; Value is what you get.

So now own these assets and start geyting rich!

5 comments:

  1. I guess you are right but all these instrument need sizeable capital even before it can be started.. ;-)

    ReplyDelete
  2. Other than properties, in fact you can start off with stocks and online businesses with minimal capital! Although it would be better that you can begin the journey with much more leeway :)

    Saw from your blog that you are new to investing! Welcome to the world of investing and hope you can earn lots along the way! By the way, I am also a writer in fool.sg so nice to meet you!

    I am doing up a new column under "Investing Faqs" so if you have any questions feel free to ask me and i will publish it here for everyone to share.

    Happy Investing!
    James

    ReplyDelete
  3. Why not because these are source of income, think of property ... Builders in Jaipur... suppose you purchase 100 acres of land, what about after 5 years, the price are five times as what you pay today.

    ReplyDelete

  4. Thanks for the amount of work to provide an informative article. I will certainly store it as a major point of future reference.
    Equity Tips

    ReplyDelete
  5. eToro is the ultimate forex trading platform for newbie and pro traders.

    ReplyDelete