5 Assets That Can Make You Rich
In this blog, you will learn about 5 Assets That Can Make You Rich.
There is a lesson from Rich Dad Poor Dad which is a very important lesson, that you can't get rich with your salary.
To get rich you have to own something called assets.
What is the definition of assets?
The definition of an asset is-: Something that can earn you money without your time.
In this blog, you will learn 5 such Assets that you can own, with which you may earn money and that will be your first step towards getting rich.
Number 1 -: Stocks
Whenever you buy a company's stock you are essentially buying ownership of the company. So, as the company grows the price of its stock increases. As the stock price increases the value of your ownership increases. But for this, you don't need to do any hard work.
In this sense, you need to know
- Which company stocks to buy.
- The price you can buy that stock.
- The price you can sell that stock. (If you need it)
But beyond this, the actual hard work of running the company, someone else is doing that for you. And that is fascinating, think about it. For a second if you say I want to buy shares of any XYZ company worth Rs 5,000.
The minute you do that, what you are essentially doing is giving the responsibility of your Rs 5,000 to the owner and the management of that company.
So, it is very well understood that stocks are volatile. But over a period of time, owning stocks will give you the best amount of freedom for your money.
Number 2 -: Portfolio Of Stocks
There is a challenge in stocks, which company stocks should you buy? And not everyone is well researched, right?
You and I may not be at a point where we know what's multi-bagger, which low-cap company stocks to buy, so when it becomes mid-cap or large-cap then I will get a lot of money. So on and so forth.
We are not Rakesh Jhunjhunwala or Warren Buffet or Peter Lynch. So what do we do then? We buy a portfolio of stocks.
Such a portfolio where you don't need to do so much research, but you are betting on a thesis.
For example, a good thesis is I don't know which stock market stock I need to buy in India? But, I have faith in India for the next 20-30 years. So I invest in the only index or the stock market which is a classic mutual fund investment. Or you can invest in a small case which is again a portfolio of different stocks.
A portfolio of stocks is a great way for beginners if you have no idea how to enter the stock market.
Number 3 -: Cryptocurrency
In Crypto, the main two coins are Bitcoin and Ethereum, if you focus on just these, you will create an asset where value is going to increase as you go in the future.
Bitcoin has increased by 3300% in the last 5 years. It means if you have invested Rs 100 in it then after 5 years it would be Rs 3300.
If you invest 5% to 10% of your total investment in crypto then it would be a great way for you to become rich.
Number 4 -: Commodity
Commodity - Gold, Silver like these. This was a great way in the past to create wealth. Because if you owned these commodities then you were owning the underlying asset of the currency.
I wouldn't say it is a brilliant asset, I wouldn't say it is a bad asset. Again if you are in your 20s please purchase only digital gold, don't purchase jewelry.
Number 5 -: Investing In Yourself
The best asset in the world is knowledge. "An investment in knowledge pays the highest interest and forever."
Knowledge is the only asset that has created the highest number of Millionaires and Billionaires to date. Elon Musk read thousands of books on rocket science and built SpaceX. Warren Buffett has also read thousands of books on investing and today he is the richest investor.
You can increase your knowledge by reading books, watching educational videos, etc.
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