It is common knowledge that wealthy individuals have multiple ways of making money and they don't just depend on 1 source of income virtually all rich and successful people have assets that produce money in long term wealth but what are these assets that are making people rich right now as we speak well in this episode of the betterment project let's talk about 10 acid star 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 list use author of the popular book rich dad poor dad Robert Kiyosaki definition of an asset analysis is an object of 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 in limiting liabilities this way they can grow their wealth now that we have our definition of an asset let's talk about the first acid that people use to get rich
stocks have made people wealthy for centuries did you know that if you bought $220 of apple stock in 1980 today would be worth over $180000 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 $10000000 issues 1000000 shares and you own 50000 shares this makes you the owner of 5 percent of the company in other words you own a 0.$5000000 worth of this company now there are 2 main ways people get rich using stocks of the company you own stocks in increases in value for example from 10000000 to $15000000 then the value of your 5 percent ownership also increases from 0.$5000000 to 2.$5000000 for example the company apple in January of 2010 was worth around 190 $2000000000. 6 and 10 years later by March of 2020 apple is worth around 1.$3000000000000 this means that investors who bought apple stock in January of 2010 have made an average of 670 percent return on their investment over the last 10 years a $10000 investment would be worth around 60 7000 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 the specific come from dividends to use and spend as they please or they can reinvest its cash flow back into buying more stocks allowing them to compound earnings even further.
bonds and other investments that people use as part of their get rich strategy our 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 the stock well let's talk is more 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 safer investments than stocks is they are not ownership of a company but loans to be paid so the company loses market value the stock holder also loses value but bondholders do not and in some instances we 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 Nelson's bonds are typically safer investments they also bring a lower return on investments with an average return of 3 percent per year investors use bonds to diversify their investment portfolio and limits their total rate bonds can also be bought in major stock exchanges just like stocks
real estate is a tool that has made many people wealthy for years in 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 month with no on going work needed making this type of income passive income the second way people build wealth with real estate is by using that 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 of bias while having their tenants pay down their loans building I'll. Their equity in the property for example if you bought this property for $100000 with a $20000 down payment this means that you took a loan of $80000 let's say for the next 15 years this means that you have a mortgage payment of $445 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 $5333 per year and 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 but 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 business in like an office building or a restaurant there's also a land or farm real estate that can be rented out to farming businesses to expand their operations while collecting a rent check
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 the company that owns and operates real estate where investors can buy shares and receive dividends he reads is similar to a stock when an investor buys to reach 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 distribute 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 and sell
businesses one of the biggest waste people are making money as we speak is through building their own business now for most people starting and scaling a business is not a pass. As a way of earning money building is selling a business takes a lot of work but if done right we can system mais does business to be more passive training this business into a passive income assets
index funds we talked about it stocks earlier and how many people have become wealthy using them but this type of acid 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 no one can really predict what the market will do and unless you are a master investor like Warren Buffett already DeLeo 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 the match or track a section of the financial markets like the S. and 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 2 low operating expenses so is 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 it's always do your research and or consult with a good financial adviser before making investment decisions.
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 our patented companies and make a residual income from it have you ever heard of the slinky this simple little invention has made around $3000000000 in profits same with the freebie this little patented idea made around $500000000 per year at its peak the crucible patent invented by Scott still linger in the 19 eighties was sold to Hasbro for $100000000 now trademarks are a little different trademarks protect other properties such as logos names and even phrases there are many popular catch phrases that are trademark 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 at check
digital products are becoming a massive asset for any business or individual have you ever noticed how some of the biggest celebrity into Norse 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 today 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 as 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 can also create music stock footage or sounds that he can sell to other creators as a filmmaker he can create a plugins to make editing easier for other creators you can also create a training course to. Others this process of producing films and just like that Tom now has 6 digital products that can generate a money on top of his filmmaking business even if he's not actively there
copyright copyrights protect intellectual property such as books music or poetry among others this is a great asset says these copyrights can also be license out for a royalty one of my favorite examples is JK Rollings she is the author of the popular book series Harry potter providing her with royalties every time the book was spot than the books were made into movies providing her with another layer of royalties since our 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 extractions are based on her intellectual property adding more to her royalties reportedly rolling earns royalties from ticket sales merchandise food cells and even beverage sales sold within the park 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.
audiences in social media brands this is something that is fairly recent many people didn't think it was real a few years ago then when influencers begin 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 10 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 this channel for example was grown with a $40 microphone in the computer and nothing more so anyone with a camera on the phone can begin building an income generating assets with social media
stocks have made people wealthy for centuries did you know that if you bought $220 of apple stock in 1980 today would be worth over $180000 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 $10000000 issues 1000000 shares and you own 50000 shares this makes you the owner of 5 percent of the company in other words you own a 0.$5000000 worth of this company now there are 2 main ways people get rich using stocks of the company you own stocks in increases in value for example from 10000000 to $15000000 then the value of your 5 percent ownership also increases from 0.$5000000 to 2.$5000000 for example the company apple in January of 2010 was worth around 190 $2000000000. 6 and 10 years later by March of 2020 apple is worth around 1.$3000000000000 this means that investors who bought apple stock in January of 2010 have made an average of 670 percent return on their investment over the last 10 years a $10000 investment would be worth around 60 7000 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 the specific come from dividends to use and spend as they please or they can reinvest its cash flow back into buying more stocks allowing them to compound earnings even further.
bonds and other investments that people use as part of their get rich strategy our 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 the stock well let's talk is more 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 safer investments than stocks is they are not ownership of a company but loans to be paid so the company loses market value the stock holder also loses value but bondholders do not and in some instances we 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 Nelson's bonds are typically safer investments they also bring a lower return on investments with an average return of 3 percent per year investors use bonds to diversify their investment portfolio and limits their total rate bonds can also be bought in major stock exchanges just like stocks
real estate is a tool that has made many people wealthy for years in 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 month with no on going work needed making this type of income passive income the second way people build wealth with real estate is by using that 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 of bias while having their tenants pay down their loans building I'll. Their equity in the property for example if you bought this property for $100000 with a $20000 down payment this means that you took a loan of $80000 let's say for the next 15 years this means that you have a mortgage payment of $445 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 $5333 per year and 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 but 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 business in like an office building or a restaurant there's also a land or farm real estate that can be rented out to farming businesses to expand their operations while collecting a rent check
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 the company that owns and operates real estate where investors can buy shares and receive dividends he reads is similar to a stock when an investor buys to reach 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 distribute 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 and sell
businesses one of the biggest waste people are making money as we speak is through building their own business now for most people starting and scaling a business is not a pass. As a way of earning money building is selling a business takes a lot of work but if done right we can system mais does business to be more passive training this business into a passive income assets
index funds we talked about it stocks earlier and how many people have become wealthy using them but this type of acid 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 no one can really predict what the market will do and unless you are a master investor like Warren Buffett already DeLeo 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 the match or track a section of the financial markets like the S. and 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 2 low operating expenses so is 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 it's always do your research and or consult with a good financial adviser before making investment decisions.
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 our patented companies and make a residual income from it have you ever heard of the slinky this simple little invention has made around $3000000000 in profits same with the freebie this little patented idea made around $500000000 per year at its peak the crucible patent invented by Scott still linger in the 19 eighties was sold to Hasbro for $100000000 now trademarks are a little different trademarks protect other properties such as logos names and even phrases there are many popular catch phrases that are trademark 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 at check
digital products are becoming a massive asset for any business or individual have you ever noticed how some of the biggest celebrity into Norse 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 today 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 as 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 can also create music stock footage or sounds that he can sell to other creators as a filmmaker he can create a plugins to make editing easier for other creators you can also create a training course to. Others this process of producing films and just like that Tom now has 6 digital products that can generate a money on top of his filmmaking business even if he's not actively there
copyright copyrights protect intellectual property such as books music or poetry among others this is a great asset says these copyrights can also be license out for a royalty one of my favorite examples is JK Rollings she is the author of the popular book series Harry potter providing her with royalties every time the book was spot than the books were made into movies providing her with another layer of royalties since our 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 extractions are based on her intellectual property adding more to her royalties reportedly rolling earns royalties from ticket sales merchandise food cells and even beverage sales sold within the park 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.
audiences in social media brands this is something that is fairly recent many people didn't think it was real a few years ago then when influencers begin 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 10 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 this channel for example was grown with a $40 microphone in the computer and nothing more so anyone with a camera on the phone can begin building an income generating assets with social media

Post a Comment