Good day twenties. it is my hope that you are putting time & energy into building a better and stronger version of yourself. After all, you are the only person you are competing with. Thank you very much for reading my blog. Please do follow my blog, join my mailing list and & if you like this don’t hesitate to share it with your friends.
As requested by one of the blog readers, today we are going to be discussing on the whole issue of buying assets. This is something that we will be doing sooner or later.
Today we will know basic things to note as we enter into the whole buying assets thing.
- There are good and bad assets.
Good assets are the assets that put money in your account. They are things like stocks, bonds, mutual funds, commodities, investment real estate, futures, options, hedge funds, and so on. All these assets have the ability to put money in your pocket. These are commonly called investments.
Bad assets take money out of your bank account. They are things like your car, house, clothes, TV, stereo, mobile phone, furniture, CDs, Xbox, boat, and so on. Bad assets take money out of your pocket in three main ways. They cost you money to buy, they usually cost you money to maintain and they have an opportunity cost, which represents the forgone opportunity and benefits that could’ve been earned or received from that opportunity.
- Track your net worth
You probably (hopefully) track your budget every month, but your net worth doesn’t need quite as much attention. It’s still a good idea to keep an eye on it. Do you do it?
Your net worth is the best indicator of your overall financial health. Your financial statement is the tool you can use to track your net worth (assets and liabilities). This is different than your budget, which is used to track your income and expenses.
For example, before I can decide how I should allocate my income and expenses in my budget, I need to look at my net worth. I may have the same income and expenses as the person next to me, but the person next to me may have a completely different net worth than I do.
So, before I decide which budget to use, I need to look at where I stand financially as of today and where I want to go. My financial statement, showing my net worth, shows me this. Then, I can set goals and create a budget in line with those goals.
- Leverage your years. At this stage there is less baggage. So making use of this despite the little income is so much better. The sooner the better as you can afford more mistakes than later.
So utilize your twenties to the fullest we all know that is what we are here for right.
Virtual hug … Yei
- Be aggressive. Investing in stock markets is not something I have enough knowledge on. But I think it is much better to keep your money there. OK, so maybe you don’t burn through your earnings that quickly. But consider this: The only way most people have any hope of creating real wealth is by investing in the stock market. Sure, you could invent something awesome, start a billion-dollar company or win the lottery, but let’s face it: Your chances are slim.
Slow and steady is the next-best option to a sudden windfall or wild success. Investing regularly over time gives you control over your destiny — unlike hoping to wake up one day as the heir to a vast fortune. This is much better instead of stashing your money in a freezer. Keep in mind that you should do proper research on the stock market before you invest
- Save more. This is as better as it gets. The only way to invest is to save more and spend wisely.
- Speak to those who have been there & done that. People who have been there can tell you more on where, what and when you should invest in what types of assets.
What are the other things that should bew noted before buying assets.Share with us on the comments down below.Do you have any questions , ask us in the comments below.
This is your Monday dose of inspiration. Keep up with the discussions on twitter using #20assets.
Write to you soon
Keep it smart and 20