Long time ago there was no concept of money. People used to trade goods with one another. Rare items were termed as precious. However, as humans we like to put a number on things. We decided to come with value of items. This is how money came into picture. It is helped determine value of an item.
In short, we can say money helps us buy items. Items come in multiple shapes / sizes. It can range from groceries / electronics to real estate / stocks.
In short, money helps us buy items of varying asset value. Some may be depreciating which decrease in value over time like car / mobile. Some may be appreciating which increase in value over time like real estate / stocks.
In this article, we will concentrate more on appreciating assets. Every heard the phrase “ Money makes more Money” or “ Let money work for you while you sleep”. Well, it is appreciating assets working for you.
Till now, it seems very easy. If appreciating assets are working for you, why not buy more appreciating assets. Let’s build a great team of such assets and work is done.
Well, this is simple to say but difficult to implement. The lure of depreciating assets at lower price makes us easily fall in the temptation. On the other hand, it takes discipline to buy appreciating assets as they are expensive to buy in first place. One must accumulate enough money to buy appreciating asset and wait for the value to appreciate. It requires patience / discipline / hard work.
In my series of blogs, I will cover on this topic. We will go over various topics on increasing appreciating assets with one simple trick:- Positive Money Flow.
Watch out for this space!