What is an Asset
Many times I have been asked by family and friends what an asset was. Every time they ask I give them the simplest answer I have.
Assets are something that puts money into your pocket.
If you own a home right now and you are making mortgage payments, paying taxes, and doing repairs, your home is NOT an asset. I don’t care what your accountant tells you, anything that takes money out of your pocket is a liability.
This goes same for your car, your boat, or even a rental property if the money that goes out is greater than the money that comes in. Adam and I have had a few experiences with rental properties as we will explain in later posts.
For now you need to realize that something as small as a gumball machine can become an asset. If you have a small gumball machine placed somewhere that is making twenty dollars a month and you are only paying five dollars for the candy, guess what? You have an asset. It might not be the type of return you’re looking for in order to retire but none the less it is an asset.
This holds true for anything you buy that makes more money than you spend on it.
How do I find these assets you ask? It’s very simple once you have developed your asset finding muscles. Like everything else the process becomes easier once you have practiced it. Do some research on real estate, tax liens, small business and the like. See what you come up with and you will soon find it easier to spot the money making assets that create wealth.
Adam and I have been practicing for several years now and are just now beginning to realize the amount of money that is out there waiting to be made. Keep your eyes open and read some of the other articles we have posted so that the path to wealth becomes a little easier for you. Good Luck!