Technology, Money & Questions

In my last article on Assets and Liabilities we saw that traditionally anything and everything that appreciates in its value over time is considered to be an asset. But, our traditional explanation doesn't holds good in this information era.were money holds an important place as never before. Hence, I suggested you to take a different perspective towards Asset, the Rich Dad, Poor Dad way.

An asset is something that not only appreciates in its value over time, but also brings cash inflow from time to time.

Going by this standard for assets, we can consider all the following instruments as assets.

1) If you are a business man, your business is your biggest asset. If you manage to make it successful, your business will bring you lot of cash inflow on top of appreciating in its value.

2) If you are an employee, your exclusive skill on your career domain is your important asset. You are paid for your skill. So, you need not hesitate to invest on your self improvement which would help you grow in your career.

3) Properly planned and rented buildings are absolutely wonderful assets. Of course, only if they are not mortgaged or the income from those rented properties is actually more when compared to your monthly installment.

4) Any virtual asset that brings you money is an asset. Virtual asset is something that exists in the virtual space, i.e., over the internet. There are several instruments available in this information era to make money via internet. Your speciality website can bring you lots of money through advertisements, blogs also work in the same way. The notable thing is, these assets also grow in its value over time.

5) All your investments are assets. Money invested in stocks, mutual funds, bonds, PPF etc,.

Build more and more assets if you want to become wealthy over time.

Posted by VK at 8:48 AM Comments