All over the world, many individual have many ways of making money or adding more wealth to themselves. Many wealthy individual in the world don't only depend on one source of income.
It is known all over the world that almost all the wealth and successful individuals have assets that bring money and long term wealth for them . The question most people ask is that what are these assest these people have that is making them rich. In this article I would be writing about eight assests that are making people rich. Before I go on I would like to briefly explain what an assest means. An assest can be defined as something that as valuable which an entity owns, benefits from, or has use of, in generating income. Assest can also be defined as a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. It is the result of a past event or transaction
We can easily group these assets into two major asset: tangible assets and intangible assets. Tangible assets consist of different subclasses, including current assets and fixed assets. Current assets contain inventory, while fixed assets contain buildings and equipment. Intangible assets can be defined as non-physical resources and rights that have a value to the firm because of the advantage they give the firm in marketplace. Intangible assets include goodwill, copyrights, trademarks, patents, computer programs, and financial assets, including accounts receivable, bonds and stocks.
Most wealthy individuals put more attention in creating more assets and reduce the liabilities at hand.
A stock is a type of investment that represent an ownership share in a company. When you purchase a company's stock, you are purchasing a small piece of that company called a share. Investors purchasees stocks in companies they think will go up in value.
Types of stocks
1. Growth stock: these are the shares you buy for capital growth rather than dividend
3. New issue.
4. Defensive stock.
Corporations raise capital by issuing stocks and entitle the stock owners to partial ownership of corporation. Stock are bought and sold on what is called an exchange. When stocks appreciate in value and are worth more than the investor paid to buy the share, That's a positive outcome for investors. To earn dividend payments.
Bonds is a fixed income instrument that represent a loan made by an investor to a borrower ( corporate or governmental). It pays interest regularly, so they can help generate a steady, predictable stream of income from your savings. Treasury's are the safest, most liquid investment on the planet.
Types of bonds are treasury bonds, high yield bonds, foreign bonds, mortgage backed bonds, municipal bonds.
3. Real Estate
Many individual has become wealthy through the use of Real estate. The more the population increase everyday the more people are looking for where to live.
There are different method of getting wealthy through the use of real estate:
(I) Rent out property: when you rent out property to tenants, who in return pay you every month.
(ii) Using debt
(ii) Property Value
Many individual get wealthy by starting up businesses that people are interested more in. All they just need in the business is commitment and patient. Some persons start by having just one shop as times goes on they move on to having two shops and as business grows bigger they would now spread there business all over the world.
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