Introduction:The rich buy assets, the poor only have expenses, and the middle class, they buy liabilities, thinking that they are assets.Today I’m going to teach you the three assets that rich people have. As a media personality. Now, in spite, it doesn’t matter what industry they’re in land they are form all walks of life, what I’ve noticed is, all these successful people have created their wealth in three main asset classes.
Asset class number one: Out of Three Assets things is Asset class number one, businesses. A business they start themselves, or a business that they are partner of. Or in some cases, someone else’s business that they have invested in, or it could be a business that they founded so many years ago that they sold. But most of the time, they have created their wealth in businesses.
Asset class number two is stocks: Out of Three Assets things is Asset class number two, stocks. They have stocks, index funds, mutual funds, options. What I notice is, rich people, they like stocks. They have a stock portfolio because of liquidity that they could sell and get cash any time they want, they can turn that shares into money. And also in some cases, of course, future earnings and appreciations. Sometimes they invest for the dividends. So dividend stocks. So they have paper assets.
Asset class number three: Asset class number three, and that is real estate. Now most wealthy people, they either have created their wealth through real estate or they hold their wealth in real estate. I’m talking about rental properties. It could be condos, houses, commercialproperties, apartment buildings, right, there’s so many different kinds of real estate.
It also could be land. Land that they lease out to farmers or vendors. It could also be mortgages, we call them notes, right, papers. That could be also part of their investment strategies. It could also be parking lots. Those are cool. Orself-storageunits, those are cool, too.
Or it could be REIT, R, E, I, T,real estate investment trust, right. So what I’ve noticed is they have their money, they hold their wealth in real estate, one form or another. So those are the three main asset classes that rich people have.
Ur turn to think for change now:So I want you to ask yourself, what type of assets do you have? Are you working towards acquiring some kindaassessor building some kind ofassets? Now, when it comes to investing, youwant to keep it nice and boring. Don’t make it fancy. It’s like martial art, basic punch, basic kicks, they are the best.
Yeah, you can do the jumping, flying kicks and all that stuff, but you don’t want to do that. Youwant to keep it very, very boring.If you’re having conversations with a buddy every weekend about, hey, look at my latest investment, look at my latest thing I just put my money in, and that’s not a good sign.
You want it to be boring, you want it to be like, same stuff, nothing changes. And a year later, sitdown with them and say, yeah, kind asame. That’s the best. You want assets that are nice and boring that just chunks cash flow, right, day in and day out.