Do you know that even today more than 90% of people in our country keep their entire life's hard earned money just in their savings bank account, thinking that their money is completely safe? But the reality is far, far from this.
Welcome friends, and
welcome to another very special and life changing article. Today
we are going to expose a bitter truth that no bank or financial system ever
wants you to know.
The Truth
About Your Money Sitting in the Bank
The truth is that your
money never sits idle in the bank. The bank uses your own money to give loans
to big companies and earns crores in profit from it. And what do you get in
return? Just a measly 3 to 4% interest.
This directly means that
your hard earned money is not working for you : it is working to make the
bank's system even richer.
And there is an even bigger
silent killer whose name is inflation. As long as your money sits quietly in
the bank's locker or a regular account, the termite called inflation slowly
hollows out its real value : that is, its purchasing power.
Ten years ago, how much
grocery or stuff could you get for $1000? Can you get the same amount today?
Absolutely not. What you are buying today for $1000, in just a few years you
will have to pay $2000 for that same stuff.
The system has been
deliberately designed in such a way that if you are only saving money, you are
actually getting poorer slowly every single year. You think you are playing it
safe but in reality you are taking the biggest risk of all.
What Rich
People Do Differently
But just think : what if
you put your money in places that keep increasing their own value with time?
Places that give you income while you are sleeping, while you are eating and
even while you are on vacation?
Rich people don't do daily
labor just for money. Instead they put their money to work for them. Every
single rupee of theirs works like an employee for them, earning even more
money. This is the biggest secret that completely separates the thinking of a
poor person, a middle class person and a rich person.
In today's article I am going to tell you in detail about 10 extremely powerful assets
that will completely transform your financial future. If you bring even just
two or three of these assets into your life, in the next 5 years your life will
be at a place where today you only think about in dreams.
Among these, number eight
and number ten are my personal favorites because in today's digital age these
are the fastest money making systems without investing lakhs of rupees. So make
sure to watch till the end without skipping. Every second is going to be
valuable.
First,
Understand Assets vs Liabilities
But before moving forward,
let's understand one basic but most important financial concept. What exactly
are assets and liabilities?
In simple words, an asset
is everything that puts money into your pocket : whether you work or not. And a
liability is something that constantly takes money out of your pocket.
Often middle class people
mistake their liabilities for assets and this is the biggest reason they remain
poor.
For example, let's say you
took a personal loan of $5.25 lakh for 10 years at a heavy interest rate of 18%
just to show off in society or to appear high status. Now understand this
calculation carefully. Because of this loan your EMI of around $9460 gets cut
every month. This money is constantly going out of your pocket every month. You
will keep paying this amount for 10 years and in the end you will have paid the
bank almost double the original amount. Is that $5.25 lakh loan or the thing
bought from it earning you any money? No. So this is not an asset but a very
big liability. It is a trap that is pushing you years behind financially.
Rich people first build
assets and then fulfill their desires with the money coming from those assets.
While poor and middle class people buy liabilities the moment their salary
comes in, get trapped in the EMI cycle and grow old spending their entire lives
paying EMIs.
So let's change our mindset
now. Without any delay let's start and deeply decode those 10 real assets.
Asset #1 Real Estate
Land and property are
counted among the oldest, most secure and most trustworthy assets in human
history. The logic behind this is very straightforward and unchangeable. The
world's population is growing rapidly every second. But the size of land on
this earth remains the same. Land is not something we can manufacture more of
by setting up machines in a factory. Its supply is limited but demand keeps
increasing.
In the long term a property
bought at a good location gives you two kinds of tremendous benefits. First,
its own value keeps increasing which is called capital appreciation. And
second, you can generate a fixed passive income every month by renting it or
leasing it out. Inflation has no bad effect on real estate : in fact as
inflation increases, your property's price and its rent also keep going up.
Now many of you will think
that buying property requires lakhs or crores of rupees which a common person
doesn't have. This is exactly where financial education and smart investing
comes in. Today you don't need to buy an entire building. Through REITs : Real
Estate Investment Trusts : you can buy a small share in big commercial malls,
hospitals or large office buildings with just a few thousand rupees. Meaning
even with less money you can become a real estate investor and take advantage
of rent.
Asset #2 :
High Income Skills
This is perhaps the world's
most underrated but highest returning asset. We spend lakhs of rupees on school
and college degrees but they don't teach us how to earn money. If you have a
skill that has heavy demand in the market then no economic recession in the
world, no crisis can make you unemployed.
In today's digital era just
knowing normal data entry or clerk work is not enough. If you know how to do
copyright safe cinematic video editing in ultra HD or 4K quality, or if you
know coding, digital marketing, copywriting or using AI tools and prompt
engineering in an excellent way, then you can work for clients from around the
entire world sitting in one room of your house and earn lakhs.
An expensive phone worth
one and a quarter lakh will never make you rich. But using that same $1 lakh
phone or laptop to learn a high income skill can change your entire life and
the future of your coming generations. A skill is an asset that no government
can take away from you in the form of tax and no thief can steal it.
Asset #3 :
Gold and Precious Metals
Gold is not just jewellery
to wear around the neck or on the hands. For thousands of years since the time
of kings and emperors it has been the best way to safely store real wealth. Whenever
any country's economy wobbles, the stock market crashes or there is any war or
terrible crisis in the world, investors from all over the world take out all
their money and put it in gold. Because the value of paper notes can fall but
the value of gold always stays intact.
But here in our India
people make a very big mistake. In the name of investment we go to the
jeweller's shop and buy heavy jewellery. When buying jewellery you waste 10 to
20% of your money just in making charges, designing charges and wastage. When
you go to sell it that money will never come back to you.
If you truly want to use
gold as an asset and as an investment then instead of physical gold invest in
government issued Sovereign Gold Bonds : SGBs : or Gold ETFs. Here you get 100%
purity guarantee, no making charges have to be paid, there is no fear of theft
and the government also gives you an extra 2.5% interest every year.
Asset #4 :
Stocks and Shares
Do you want to become the
owner of big giant companies like Reliance, Tata, Infosys or Apple? The stock
market gives you exactly this opportunity. When you buy a share of any company
you actually become a small shareholder of that company. You become a small
owner of that company. As the company grows, makes new products and its profit
increases, the value of the shares you bought also increases. And along with
this many companies also send a part of their profits directly to your bank
account in the form of dividends.
The world's greatest investor
Warren Buffett said something very profound. He said that if you don't find a
way to earn money while sleeping, you will have to work till the last breath of
your dying day.
The stock market can go up
and down in the short term : a few months or a year or so. It can scare you.
But history is witness that if you choose strong and good companies and hold
them for a long time, the stock market has so much power that it can make even
a common person a crorepati.
Asset #5 :
Your Own Business
When you do a job in a
company from 9 in the morning to 5 in the evening, you are actually spending
the entire energy of your life fulfilling someone else's dreams. Your hard work
makes your boss rich. But when you start your own business, every single drop
of your sweat goes into building your own empire.
The beginning is always
very difficult. There is risk in business. You don't sleep at night. Many times
there is fear of failing and people around you taunt you too. But if you hold on
: once your system gets set, a great team comes together and customers start
lining up : that business generates cash flow for you 24 hours a day like a
machine.
Today business doesn't just
mean opening a big factory by investing crores. You can start with a small
digital marketing agency, a consulting service or a cloud kitchen. A real
business is one that makes money for you even when you are not physically
present there.
Asset #6 :
Mutual Funds and SIP
Many people in our country
get nervous just at the name of the stock market. They feel it is some kind of
gambling and picking stocks is not something they can do. They are afraid that
all their money will sink. For such people mutual funds are nothing less than a
blessing.
Here your money is invested
by highly qualified and expert fund managers after very deep research across
different top companies. Because your money is not in one company but spread
across dozens of companies, your risk reduces very significantly. You don't
need to track the stock market every day. You just have to invest a small part
of your salary or earnings every month with discipline through SIP : Systematic
Investment Plan.
In the first three or four
years you might not see any big magic. You will feel that the money is growing
very slowly. But after 10 to 15 years when the real magic of compounding starts
working, your monthly SIP of a few thousand turns into a massive corpus of
lakhs and crores of rupees. Albert Einstein did not call compounding the eighth
wonder of the world for nothing.
Asset #7 :
Bonds
Always remember one thing :
smart investors never put all their money in high risk or very high return
places. They always maintain a balance in their portfolio. They know that the
market can crash too.
Bonds are a stable asset
where you don't put your money in the stock market. Instead you lend your money
to the government or a very big corporate company for a fixed period of time.
In return they promise to give you a completely fixed return that is much
better than a bank Fixed Deposit.
If the stock market is your
vehicle's accelerator that moves you forward fast, then bonds are that
vehicle's strong brakes and airbags that protect you from crashing and getting
ruined when bad times come. Protecting your wealth is just as important as
building it.
Asset #8 :
Digital Assets
Now let's talk about the
best and my most favorite asset of today's digital revolution. Digital assets
are virtual things that require your effort and time to create only once but
through the power of the internet they keep giving you passive income for years
and years.
Writing a good e-book,
creating a valuable online course, developing a software or building a great
YouTube channel are the most perfect examples of this. If you feel hesitant to
come in front of the camera then you don't need to come in front of the camera
at all. You can work by building a completely faceless channel without showing
your face. Using great AI voiceovers and engaging sound waves in the background
or ultra HD static images you can build a very professional audio centric news,
finance or general knowledge channel.
Just think about it. You
uploaded a high quality and well researched video today. People will watch it
today. They will watch it next month too. And maybe 5 years from now somewhere
in some corner of the world a person will search for it and watch it. That one
video becomes a robot working 24 hours on the internet for you, continuously
printing money for you through AdSense and sponsorships. For this you don't
need lakhs of rupees : just a smartphone, internet connection and a never give
up stubbornness.
Asset #9 :
Startup Funding and Venture Capital
This is a slightly advanced
level game of the finance world. Its simple meaning is putting early money into
new startups or small businesses that have a brilliant idea to solve some big
problem of the world but don't have the money to turn that idea into reality.
If you put money into such
a startup right at the beginning and that startup goes on to become a big
company or a unicorn, then your small investment can grow a thousand times. But
there is also a very big warning here. This is an extremely high risk asset.
The reality is that 8 out of 10 startups fail and shut down within the first 3
years.
Therefore you should never
put your entire savings in this asset. Invest only and only that money here
whose complete loss would have no bad effect on your daily life, your household
expenses and your sleep at night. Today there are many angel investment
platforms where you can invest in startups with less money too.
Asset #10
: E-Commerce Store
The internet and
smartphones have broken all the old rules of the business world. Twenty years
ago if you had to open a shop you had to find a place at a good location, pay
heavy rent or deposit, spend lakhs on interior and then sit at the counter from
morning till night.
But today you can start
your own beautiful online store from your laptop in just a few hours. Through
digital products, print on demand or dropshipping you can sell your goods to
the entire world without stocking any physical inventory. The best and most
powerful thing about this asset is that a physical shop closes at 10 at night.
But your e-commerce store stays open 24 hours and seven days a week. Whether
you are spending time with your family on Sunday or sleeping deeply at night,
notifications of new orders can still come on your phone screen. Money is
coming to you even while you sleep. This is the real power of this digital
world.
The Right
Way to Get Started
So friends, those were the
10 powerful assets. But keep one thing in mind : knowing about these 10 assets
absolutely does not mean that you wake up tomorrow morning, take out all your
money and put a little bit everywhere.
Getting rich is not some
magical scheme that doubles money in 21 days. It is a long marathon, not a 100
meter race.
First you should invest in
your own knowledge. Read books, take courses. First increase your active income
by improving your skills. After that build a strong emergency fund equal to at
least 6 months of expenses. So that if some trouble comes tomorrow, if you lose
your job, you don't have to sell the assets you built at throwaway prices out
of compulsion.
And once your emergency
fund is built, then slowly and according to your understanding and research
start building these assets in your portfolio.
Now this final decision is
completely yours. Do you want to spend your entire life running after money
while paying EMIs, or do you want to change your thinking and build a strong
system where money works for you?
If this article has given even a little clarity to your thinking and added some value
to your life then don't forget to like it. Do tell me in the comments below
which is that first asset among these 10 that you are going to start working on
fr om today itself.
And if you want to keep
getting such great and deeply researched articles on
finance, investing and wealth creation then subscribe to the WordsHavePower right now.
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