Do You Know?
Your net worth is more than just Your Bank Account Balance. In fact it’s a measure of your financial health.
What Is My Net Worth?
Net Worth = Total Assets-Total Liabilities
To get the answer to this question, subtract your total Liabilities from your total Assets.
Net Worth = Total Assets-Total Liabilities
You Must Know The Difference Between Assets And Liabilities First
Most people struggle financially only due to lack of knowledge about “Assets and Liabilities”. They have so many confusions between them. Sometimes they misunderstood and exchange the two terms.
Financially struggling peoples generally acquire Liabilities that they think are Assets. Generally, the Simple Things and the Simple Ideas are either missed or ignored by the financially Illiterate peoples. So try to comprehend the “Simplicity” and just let the Idea sink in your mind with the simplest definitions.
What Are Assets? Simplest Definition:
An Asset puts money in your pocket with minimum labor.
What Are Liabilities? Simplest Definition:
A Liability takes money out of your packet.
What defines an asset are not words, but numbers.
But remember again
“It’s not the numbers, but what the numbers are telling you. It’s just like words. It’s not the words, but the story the words are telling you”
10 Most Valuable Assets For Boosting Your Net Worth :
0. Your Mind
Yes! it’s your own “Mind” and definitely everyone has this asset naturally free of cost. Now only you have to use it properly and for that you have to “Train Your Brain” accordingly. Training the brain is known as “Learning”, remember it’s Learning not “Reading/Graduating/Certification”. Learning is natural and practical process for our brain. Since birth we learnt so many things like How to speak, How to cry, How to Smile, How to Laugh, How to react, How to drive etc. but never read about these things anywhere.
So train your brain financially / get proper “Financial Education”.
“Keep An Open Mind and Learn to Grow More”.
After training your brain and getting a better financial education you must research for quality stocks to invest your money so that “Your money can work for you” or we can say “Money can generate money”. Here you have to remember the word “Quality Stock” and that’s too with enough research, otherwise it may be a “Risk” for you.
The Investment is not risky for the financially literate.
2. Real Estate:
This is the most common and most popular among all. Also a very good type of Asset. This is a better option for what we people want: “Financial Freedom”. Real Estate investments either provide cash flow from rental properties or one time capital gains.
With Real Estate you use “Leverage” or OPM(Other People’s Money) to purchase the asset. So you must keep in your mind while dealing that :
Higher leverage implies higher debt and higher the debt on the property, the lower the cash flow.
3. Paper Assets
Paper assets include Stocks, Bonds, Mutual Funds(MF), and Retirement Accounts where you can invest in stock options, Stock Futures and Foreign Exchange. Paper assets also include Real Estate Investment Trusts(REITs), and Exchange-Traded Funds (ETFs).
Simplest Definition of Business : Buying and Selling Goods or Services as a way of earning money. The list of Goods and Services can be infinitely long.
Just be sure to do your due diligence and analyze the project, the partners, the finance, and the business and management team before making a business investment.
A deep research on the Demand and Necessity is highly recommended here before starting your business.
5. Digital Assets
These are the modern age assets. We live in a digital world today, and that means digital assets are everywhere. From the photos stored on our smartphones to the movies we stream from Netflix or Amazon Prime, the documents we store in the cloud, and more.
Most Popular Digital Assets :
- Slide decks (such as PowerPoint presentations)
- Excel spreadsheets
- Word documents
- Plain-text files (such as Notepad files)
- Graphics (such as logos and other brand assets)
- HTML documents (and associated files, such as CSS)
- Audio files
- Websites or Blog etc.
Here also you need a deep research, and you must keep yourself updated with technology and trend
Here Trend Is Your Friend !
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