Vehicles of Wealth: Assets

Confusion abounds. . .
Banks require you to list your assets as insurance or collateral in case you default on a loan. This is part of the trap that prevents the middle class from understanding what exactly assets are. The assets that you are listing are not really assets unless they are sold; they are liabilities. Even most people's nest egg, or rather nest they live in is likely a liability, their house. Every month you pay the mortgage, pay the electrical, gas, water, maintenance and upkeep. This all adds to your liabilities, and if the market were to drop, as it has recently the equity (market value over the amount purchased) will tear the asset from you. Jewelery, cars etc. are all liabilities that are likely loosing value daily. Don't get confused by banking lingo then vs. wealth principles.

It wasn't until around 4 years ago that I began realizing this. The more you make that you spend on liabilities the less wealthy you are becoming. The true x-factor in the wealthy is having a positive cash flow over their negative liabilities, that come as a result of assets.

A true asset brings money into your home whether you work or not. What are some examples? General examples include:
1) managed businesses (notice managed-because if you are the only worker or if your business relies on you then if you can't work you are broke).
2) properly managed and well invested rental property
3) Investments (although many have lost a lot with their investments in stocks, right now is a good time to buy). These are the main three I am involved in. I don't write about what I don't know about. My main area of focus bringing in capital is mostly devoted to the managed business (1) and investments (3). I have found these three areas the most willing for middle class to learn and earn and create the greatest dividends or returns on equity.

There is one more that bares mentioning and is the most exciting-royalties and residual income. This is an area that few see. I have a few opportunities in these areas that I am working on diligently. These are not exclusive to rock stars or insurance brokers. The opportunities are there for the taking. . . an article to come in the future on these.

Find out some more tips on how to find new areas of wealth for you and your family in later articles. Begin following the blog.

Joshua Andrus
http://www.hiresite.info/