10 Assets That Are Making People RICH

it is common knowledge that wealthy individuals have multiple ways of making money and they don't just depend on one source of income virtually all rich and successful people have assets that produced money and long term wealth but what are these assets that are making people rich right now as we speak well in this episode of the better man project let's talk about ten assets that are making people rich right now before we get into the assets it is important to understand what an asset is for the purposes of this video let's use author of the popular book Rich Dad Poor Dad Robert Kiyosaki's definition of an asset an asset is an object a property or any possession that puts money in your pocket on the other hand a liability takes money out of your pocket wealthy people focus on collecting assets and limiting liabilities this way they can grow their wealth now that we have our definition of an asset let's talk about the first asset that people use to get rich number one stocks stocks have made people wealthy for centuries did you know that if you bought two hundred and twenty dollars of Apple stock in 1980 today would be worth over one hundred and eighty thousand dollars stocks are not as complicated as they might appear when a person buys a stock they are buying a small piece of a company which makes them a small part owner of the company and in turn they are entitled to the growth and profitability of the company for example if a company worth 10 million dollars issues 1 million shares and you own 50,000 shares this makes you the owner of 5% of this company in other words you own half a million dollars worth of this company now there are two main ways people get rich using stocks if the company you own stocks in increases in value for example from 10 million to 50 million dollars then the value of your 5% ownership also increases from half a million dollars to 2.5 million dollars for example the company Apple in January of 2010 was worth around 192 billion dollars and ten years later by March of 2020 Apple is worth around 1.3 trillion dollars this means that investors who bought Apple stocks in January of 2010 have made an average of 600 and seventy percent return on their investment over the last ten years a ten thousand dollar investment would be worth around sixty seven thousand as of March of 2020 another way people make money using stocks is by collecting dividends many companies distribute part of the profits to share owners every quarter investors that receive dividends receive a quarterly check on top of their investment growth investors can either use this passive income from dividends to use and spend as they please or they can reinvest this cash flow back into buying more stocks allowing them to compound their earnings even further number two bonds another investments that people use as part of their get rich strategy are bonds if a government or a company needs to raise capital to fund a project that will issue bonds for investors to buy a bond is different than a stock while a stock is a small ownership of the company that entitles you to the gains or losses of a company a bond is a debt that a company has to investors this means that if you purchased a bond you are lending money to the company or a government to be paid with interest at a predetermined date bonds are considered safe for investments in stocks since they are not ownerships of a company but loans to be paid so if a company loses market value the stockholder also loses value but bondholders do not and in some instances they actually gain value since the company still has to pay their debts whether they lose market value or not unless the company goes bankrupt they will have an obligation to pay their debts to bond issuers now since bonds are typically safe for investments they also bring a lower return on investment with an average return of 3% per year investors use bonds to diversify their investment portfolio and limits their total risk bonds can also be bought in major stock exchanges just like stocks number 3 real estate real estate is a tool that has made many people wealthy for years and for a good reason as population increases more and more people need a place to live this creates many different ways to create wealth using real estate the first one is by renting out your property to tenants and receive a check every with no ongoing work needed making this type of income passive income the second way people build wealth with real estate is by using debt yes many investors take out debt in form of a mortgage to buy a property this allows them to buy a property even if they do not have the total amount to buy it while having their tenants pay down their loan building up their equity in their property for example if you bought this property for $100,000 with a $20,000 downpayment this means that you took a loan of $80,000 let's say for the next 15 years this means that you have a mortgage payment of four hundred and forty five dollars per month excluding taxes since tenants are paying your rent this means that they are also paying for your mortgage you are making an extra five thousand three hundred and thirty three dollars per year in equity on top of your monthly cash flow but we're not done yet real estate values tend to grow over time so if held for a long period of time a property can be sold at a much higher price than it was bought for now there are many different types of real estate residential real estate our properties where people live in commercial real estate our properties where people conduct a business in like an office building or a restaurant there's also land or farm real estate that can be rented out to farming businesses to expand their operations while collecting a rent check number for REITs now if real estate sounds good but we don't want to deal with all the management and the logistics of owning real estate then a reads can be a good option for investors this stands for real estate investment trust which is a company that owns and operates real estates where investors can buy shares and receive dividends a REIT is similar to a stock when an investor buys a reads they are buying a share of a company that owns and manages real estate properties this company collects the cash flow generated from the properties and distributes their earnings to their shareholders as dividends real estate investment trusts can also be bought and sold in major public exchanges such as the New York Stock Exchange or the Nasdaq making it easier to buy himself number five they this is one of the biggest ways people are making money as we speak is through building their own businesses now for most people starting and scaling a business is not a passive way of earning money building and scaling a business takes a lot of work but if done right we can systemize this business to be more passive training this business into a passive income asset number six index funds we talked about it stocks earlier and how many people have become wealthy using them but this type of asset takes it a little further just as we can make money with stocks we can also lose money with stocks and buying individual stocks can be quite risky see no one can really predict what the market will do and unless you are a master investor like Warren Buffett or Ray Dalio chances are trying to predict how one specific company will perform is a risky move this is why index funds are an asset on their own index funds are types of mutual funds that match or track a section of the financial market like the S&P 500 which tracks the 500 biggest companies in the US this means that if one company loses 20 percent of their value your overall investment doesn't the benefits of an index fund our number one instant diversification since you are buying not just one company but a whole sector of the market your investment is safer than if you put all of your money in one company and number two low operating expenses since this type of fund follows a sector of the market it doesn't require any active management this means no management fees that eat up your profits here's a list of some of the most popular index funds with low operating costs now these are in no particular order and as always do your research and/or consult with a good financial advisor before making investment decisions number 7 patents or trademarks if you have an invention that you think can be potentially lucrative you can file for a patent to protect your invention and companies will have to pay you to use your invention this could be an idea a product or a software if your invention has marketable value you can license your patent to companies and make residual income from it have you ever heard of this linky this simple little invention has made around three billion dollars in profits same with the Furby this little patented idea made around five hundred million dollars per year at its peak the khushboo patent invented by scott stillinger in the 1980s was sold to Hasbro for 100 million dollars now trademarks are a little different trademarks protect other properties such as logos names and even phrases there are many popular catchphrases that are trademarked for example this phrase that you can see in the screen was trademarked by Disney and cannot be used commercially by any other company without cutting Disney a check number eight digital products digital products are becoming a massive asset for any business or individual have you ever noticed how some of the biggest celebrity entrepreneurs people like Daymond John for example are getting into the digital information business this is because digital products are highly profitable assets this is something that you can create once and profit from it day in and day out in a passive way now there's a variety of different types of digital products for example let's say that my friend Tom here is a filmmaker there are many different digital assets that he can create to add income to his business for example if other filmmakers like the way he uses color he can create a preset for his color grading styles for other filmmakers to use he can also create music stock footage or sounds that he can sell to other creators as a filmmaker he can create plugins to make editing easier for other creators he can also create a training course teaching others his process of producing films and just like that Tom now has six digital products that can generate money on top of his filmmaking business even if he's not actively there number nine copyrights copyrights protect intellectual property such as books music or poetry among others this is a great asset since these copyrights can also be licensed out for our royalty one of my favorite examples is JK Rowling she's the author of the popular book series Harry Potter providing her with royalties every time the book was bought then the books were made into movies provide her was another layer of royalties since her intellectual property was used for the movies another layer of royalties come from the merchandise sold based on her characters then Universal Studios created The Wizarding World of Harry Potter where the attractions are based on her intellectual property adding more to her royalties reportedly Rowling earns royalties from ticket sells merchandise food cells and even beverage cells sold within the park since they all use her intellectual property and more royalties come from her licensing deals to produce the Broadway shows based on her writing of the Harry Potter and the cursed child number 10 audiences in social media brands this is something that is fairly recent many people didn't think was real a few years ago then when influencers began making as much money as a list celebrities people took notice and now celebrities are becoming social media influencers it's not only the high levels of attention that is possible with social media but the level of relationships that we can build on these platforms it's incredible and highly valuable ten years ago you couldn't interact with a business or your favorite celebrity by watching them on TV imagine if you were to send a message to your favorite artist and actually get a message back now we live in a world where this is a reality how much more likely are you to buy their CD or go watch their movies or even buy their products right when they come out the best thing about social media is that there is no barrier of entry anyone can take advantage of these platforms and build great businesses around them this channel for example was groaned with a $40 microphone in a computer and nothing more so anyone with a camera on their phone can begin building an income generating assets with social media now I am a big advocate of using social media to build an income so I decided to open a case study group to ten of you guys who want to grow and monetize a YouTube channel this will give you early access to a new training program I'm developing to help you build a brand on YouTube so if you want to be part of the ten people that I will be helping grow their channels make sure to apply to join I'll leave the link for the application and the notes below okay so let's recap the 10 asset that people are using right now to get wealthy number one stocks number two bonds number three real estate number four real estate investment trusts number five businesses number six index funds number seven patents and trademarks number eight digital products number nine copyrights in number ten a strong social media brand and the comments below let me know what are other assets that are missing from this list or whether you agree or disagree with the list and if you want to build your brand on YouTube make sure to apply to join our YouTube growth case study group and as always thank you for watching and I will see you in the next video

Channel: The Better Men Project

Views: 562,832

Keywords: 10 Assets that Make people rich, assets of the rich, how to invest in assets, assets vs. liabilities, rich dad poor dad by robert kiyosaki, rich dad poor dad assets, assets, income assets, money assets, rich assets, assets make you rich, rich people assets, money making assets, assets example, types of assets, assets that make you wealthy, rich vs poor, money education, assets explained, investing in assets, buying your first asset, beginner investor, wealth creation

Id: M6XfHATyHsQ

Length: 14min 7sec (847 seconds)

Published: Fri Apr 10 2020