I had just graduated college and I was struggling to find work.
I would work for a temp agency for a month or so and then be out of work for another 2 weeks. It was just enough to not have any noticeable gaps on my resume, until September 13, 2001. You see two days before there was a terrorist attack in New York City (I am sure have heard of this).
Well a lot of us in the information technology sector lost our jobs within days to months of that event.
Companies were afraid and fearful companies hoard cash. Most of the expenses a company has are called employees. So I was out of steady work for 6 months and my wife and I lived on credit cards.
For an article on assets, I haven’t given you any to see. I tell this story because when the 2008 recession happened I changed my mindset.
I doubled my salary when others were losing their jobs. I had some money in a 401k and we had bought a home before then. We were building up our assets but most importantly I was developing skills that led me to not be caught up in the crash of 2008.
These ideas are based on my personal experience and opinion and should not be considered professional financial investment advice. Furthermore, the ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.
- Defining "Assets"
- The Best Assets For Building Wealth
- The Benefits Of Building Wealth Through Assets
- The Best Assets For YOU
- Fix Your Mindset
- Where Is Your Money?
- How The Rich Make Their Money
- Are you living your best life or are you stressed about paying the bills?
- About Dwight Scull
Per Robert Kiyosaki a financial asset is anything that puts money into your pocket.
I am also defining an asset as any skill or knowledge you leverage to put money in your pocket.
You could be poor and take massive action with a little bit of knowledge and surpass those that have a good education but do little to nothing with it.
The Best Assets For Building Wealth
The first and best asset for building wealth is to have a rich mindset. If you haven’t seen my article about that check out the green block below.
Fix Your Mindset
The reason that most people have built wealth in life is that they have fixed their mindset.
Less than 20% of millionaires were born rich. That means that you could create that level of wealth in your life, but you need to start with the best asset you have: Your Mind.
Click here to read What is a rich mindset and how to get it.
Once you have your mindset correct or moving toward being rich then it is time to start building wealth.
So what are the best assets to make you rich?
First, obtain a high-paying salary for a specialized skill set if you can. If you are young or just want a career switch, look into coding boot camps. My company is always hiring computer code developers for web and mobile applications. The world will need more of these in the coming years and for a year or less of your life and under $40k you can start in most major cities in America about the median wage for a family of three with no experience.
Once you can make some money and save it (see my article on How to save $3000 in 3 months then you can start to invest.
What if I am in a dead-end job? Then you need to start to learn skills that you can leverage with action to create the life you want.
Second, invest in the stock market. If you have a good job that gives you a 401k match then take it and work toward maxing out the amount you can put into that account yearly. If you need help knowing what investing is please click the link in the green box below.
Where Is Your Money?
Most people don’t know what they are invested in when they start a new job and open up a 401k.
Do you know exactly what the fund or funds you are investing in even are?
How much are you spending on fees?
What if there was a way to invest in the biggest companies in the world easily and with fees less than 0.1%?
Third, look for others ways to make money and there are many options out there.
Ways to Make Money on The Internet
With the rise of the internet and social media, the ability to make money is easier than ever. You could start a small business solving a problem for people. You could create printable files to sell on Etsy or other marketplaces. Or write books for Amazon and sell them. Affiliate marketing is an option as well. This is where you share links to products that you use and the company gives you a percentage of each sale.
If you want more information on how to create a profitable business from a friend of mine click here.
Other ways to Make Money
Besides stocks and creating your own business to solve a problem for people here are some other ways that you could make money.
Invest your money in a Real Estate Investing Trust (REIT). I use Fundrise for this. It allows for a low barrier to getting into real estate.
You put in $100 or more dollars and pick a fund.
They use this money and pool it with others and loan it to companies to build new apartment buildings or housing communities. The companies need the cash and would rather pay a higher rate of return with a company like Fundrise than a traditional bank that may not give them the money.
If the company that wants to borrow money is a higher credit risk then they pay more interest.
You are paid a quarterly dividend for them using your money. You can have them cut you a check or reinvest that dividend back into them. If you reinvest it then the next dividend will be higher as you have more money invested in it.
Note: it is easy to get your dividend money but harder to pull out your investment because it is wrapped up in a building project. It isn’t impossible but it isn’t as fast as pulling it out of the stock market for example.
This allows you to own a small part of large real estate without the hassles of coming up with a LOT of money first, maintenance, rent, fixing toilets, etc.
And in exchange, the REIT pays you cash quarterly. You can find REIT trust all over the place. Your 401k may even have options as well.
I have about $3500 in Fundrise currently and it was how I was introduced to REITs. Check them out if you are interested.
The Benefits Of Building Wealth Through Assets
To be very frank with you. You can only build wealth through assets.
I mean you could win the lottery I guess but do you know how many of those people lose it all and are worse off 5 years later? 70% lose it all in 5 years.
Most millionaires build their wealth over time by building 7 different types of income. If you want to know what those are click the link in the green box below.
How The Rich Make Their Money
Have you ever wondered how the rich make their money?
Well they start by working a traditional job (well 80%+ do) and then they build assets over time until they are wealthy.
There are different types of assets that literally anyone can get into. Some are very active. Some are 100% passive. Most are what I call passive-ish. Lots of work at the beginning and then almost none later.
Click here to read From passive to active income.
These assets allow them to legally lower their tax bill to the IRS. Pass the wealth down to their children and grandchildren (especially if the asset is something like physical real estate).
Over time the value of assets grows. Real estate could go down in value, absolutely and that is a great time to buy it. But if you could hold onto a rental property and maintain it for 30 years you would have an asset you paid maybe $40,000 for and someone else paid off the mortgage, paid for the repairs, and gave you $75 – $150 a month cash in your pocket a month. And the house has gone way up in value.
Hopefully, you can see the benefit that would have for you and your family’s life.
Having assets allows you to have options. Having options in life is the basic thing that separates the rich from the poor.
Are you living your best life or are you stressed about paying the bills?
In this quick 2-page PDF, I cover 5 ways you can get your financial life back on track.
I used to live paycheck to paycheck and after years of paying off debt and maximizing my investments I am now able to save and invest more than 45% of my wife and I’s gross pay.
This allows me to live comfortably (not a crazy rich person) and sleep better at night. If you want this let me know where I can send it to you below.
Wow, you read a lot to get here. Can you do me a favor, please? Can you leave a comment if this was helpful to you or if I missed something? Alternatively, it would help me out a lot if you shared this content with those that might need to see it. Thanks, you are the best!
The Best Assets For YOU
There is no one best asset for any one person. Some people love to get into real estate investing. Others hate having to deal with people or even finding a good contractor and property manager.
Still, others love to create and make things to sell. They want to build up a business and hire employees. Others just want to go into business for themselves or have a side job that is funding their retirement while they work their day job.
There is no one best asset for you except how much money, energy, and effort you want to put in.
If you are determined and have the drive to start your own online business I encourage you to watch this video to learn how you could create a profitable business from a friend of mine click here.
About Dwight Scull
I have been married to my wonderful wife, Rebecca, who puts up with me since 1999. I am a proud father to my Gen Z, son, and daughter-in-law. Grandfather to my favorite granddaughter who was born in 2021.
I lost my mom, father-in-law, and 12 others in 2013 and was DEEPLY in debt. I started reading and watching all the financial info I could find.
I chipped away at my debt and went from a negative $105k net worth having one home paid off, no credit card debt, and saving/investing 45%+ of my gross salary.
I used these daily habits to lose 100 pounds and keep it off.
I believe that you can overcome any challenge you face if you just take small daily actions and be consistent with them. It is how you will be financially successful.
Join my free Facebook group to get a ton of free resources to help you get out of debt, learn how to invest your money and work toward having the option of retiring early.