What’s up, it’s @hackedongrowth here, Have you ever considered what qualities successful individuals must possess? Have you ever wondered how a great mind works or how they genuinely think?
So over years, I've listened to successful people's podcasts.
This allows me to explain not just how people think, but also why our way of thinking works. Here are seven ways you may put this into action in your own life.
Things the wealthy purchase but the poor and middle classes do not?
You know, one of the things that distinguish the effluent from the poor is that they have assets, not simply money. Rich individuals gain assets via buying, owning, and acquiring assets.
The middle class buys liabilities thinking they're assets, whereas the impoverished just have costs.
Today I'm going to discuss with you seven different sorts of assets that wealthy individuals buy, acquire, and hold. And I'm not going to define assets in the way that typical accountants do.
When you talked in accounting and they discussed what sorts of asset classes there are, I'm going to characterize it the way that affluent people, the way that we perceive assets, and are very, very different from how most people see it.
Follow the Medium page before we go in since it helps me develop stuff for you, my buddy. So, let us go through this.
1. Business is an asset that the wealthy have that the poor do not.
Most wealthy individuals, practically all of them, make their money from their firms and enterprises, or they have a stake in many companies or businesses.
When you compare it to poor people, all they have is a job.
They are paid at the end of the month. A paycheck will never get you affluent. You will only get wealthy through the operation of a business or a series of firms.
Why? Because that is the only way to employ leverage. You may use the time, money, resources, and abilities of others to construct something and make your idea a reality.
That your earning potential is not determined by the number of hours you work. You may utilize one to ten, one to hundred, and one to 500 to grow a larger business, affect more people, and give more value to a marketplace in return for money. That is what a company does.
2. Arts and antiques that wealthy people purchase that the poor do not.
The affluent are really different from you and me in many respects.
One of the most noticeable differences is their love of antiques. If you're anything like me, you've been in a million-dollar mansion yet have no idea what a Masterpiece is.
But I'm not here to discuss the wealthy or their wealth. Why spend millions of dollars on art when you can spend a few thousand dollars on a dirty longboard? There's a lot of money to be made in this industry.
Nowadays you can find the NFT arts which are more popular than ever and those are bought by cryptos and one of the exchanges that are now on Wall Street is 👉 Coinbase (NASDAQ: COIN), a cryptocurrency exchange, is one example.
This is an asset class about which I know very little.
I have no idea what the difference between a $100 painting and a $100,000 painting is.
I have no idea.
This is an area where I feel like a total moron.
My Hulk toys and Iron Man collection would be my art collection. a collection of Spiderman
However, one may argue that this is not an asset class.
To me, it is an asset class.
3. Automobiles are something that the wealthy purchase that the poor do not.
Automobiles are luxury items purchased by the rich than the poor do not. This is a truth that individuals appear to be able to accept, regardless of their financial situation.
Is it really necessary to own a car? Naturally, it is. It's a must.
The vehicle has become an essential component of our everyday life as well as a status symbol for the rich.
The vehicle, on the other hand, is not something that the poor can buy. I'm referring to high-end autos here. A car can sometimes cost more than a house.
Many individuals now buy cars simply for transportation.
The wealthy, on the other hand, occasionally buy for the sake of collection because they like driving, owning, or restoring, repairing, and selling them.
If done correctly, this may be a very profitable thing to do, but most of the time, I see that my friends do it just for enjoyment because they have a passion for autos or old automobiles.
They do, however, acquire rare vehicles because they collect them, and when they sell them, they make a tidy profit. It does, however, transform it into an asset class.
But for me, it's simply for joy.
4. A lot of property
Among the wealthy, this is the most popular asset class.
The majority of wealthy individuals either make their money through real estate or park or store their money in real estate.
When it comes to real estate, there are several varieties to choose from. There are two types of properties: residential and commercial.
Residential refers to a condominium or a single-family residence.
I'm referring to commercial real estate, which includes shopping malls, hotels, offices, and multi-family housing. There are two kinds of real estate. And there are other techniques available in real estate.
Do you like to purchase and hold?
Do you purchase and resell?
Do you grow, right?
Do you make use of Airbnb?
It all depends on what you want to accomplish, how much money you have, and where you want to go.
Hence, why do so many wealthy individuals own real estate or invest in real estate? It's because banks and lending organizations adore real estate.
They'll lend you money to buy a house, right? They value the security that real estate provides.
They believe that real estate is a hot asset, an intangible asset on which they prefer to lend money. This is why many wealthy individuals either make their money or keep their money in real estate.
5. What the affluent buy that the poor do not is paper assets.
I'm referring to bonds, mutual funds, and stocks. When it comes to assets, we may acquire them because they provide cash flow or dividends.
Under certain circumstances, we purchase assets in the anticipation that their value would improve over time. That is known as appreciation. So, when it comes to stocks, not dividend stocks, but stocks, mutual funds, and bonds, we acquire them at a given price and hope that they will rise in the future.
We're betting, and we're buying on the rise. You see, with paper assets, you can quickly convert them into money. As an example, consider a piece of real land.
To convert a piece of real estate into money, you may need to advertise the property, sell it, which takes time, or you may want to secure a loan, a mortgage, a second mortgage from the bank, which also takes time.
However, with stocks and mutual funds, you can quickly sell them and transform them into cash.
6. Intellectual property is something that the wealthy own but the poor do not.
I'm referring to patents, trademarks, brands, and copyright.
Any other intellectual property you may have.
See, there is an asset type that I am quite interested in. I'd like to own a lot of intellectual property. I prefer intellectual properties because they have the opportunity to scale, you can license your intellectual properties to others, and the maintenance charge is very, very little in comparison to other asset classes.
I can also reproduce and replicate what I do in order to help a much larger number of individuals. So, for example, Disney has a lot of intellectual assets, and Coca-Cola as a brand, the brand itself, is intellectual property.
Then the real tangible assets owned by Coca-Cola Coca-brand Cola's are worth billions and billions of dollars.
The brand itself is actually more valuable.
7. Commodities of great value
I'm referring to gold, silver, and platinum.
Gold is now extremely valuable.
You notice when the currency of our dollars, depending on what nations you're coming from, affluent people want to have their money in gold because gold, throughout history, has been the currency, the asset class that is recession-proof.
So it's an extremely significant asset type to include in your portfolio.
Precious metals, then.
These are the seven items that the wealthy purchase but the poor do not.
Bonus
Crypto-currencies
Perhaps you think about what you'll do with the Crypto had already gained popularity in recent years, but they are only now emerging as financial instruments that are accessible and helpful to more than just the most ardent enthusiasts.
If you want to take yourself to the next level by utilizing cryptocurrency,
Is bitcoin is a good investment? 👈 you can check out this blog
This study covers the procedures to take for investors who have done their homework and are interested in exploring a potential investment in cryptocurrency.
For the time being, I can give advice to you to do so. Perhaps you'd want to boost your financial self-assurance. Your inherent strength. You are your higher self. Just follow me
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