15 Assets That Are Making People Rich | Big Money Investing Review
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assets put money in your pocket liabilities cost you money the more assets you have making money for you the Richer you are this is the fundamental rule of getting rich but that said here are 15 assets that are making the rich even richer welcome to alux the place where future billionaires come to get inspired starting off at number one cash straight up cash put in a bank deposit is earning you interest pretty straightforward the downside is though the interest paid up by banks these days isn’t even keeping up with inflation but cash is still a priority Apple the company has over $150 billion in cash reserves that’s liquidity so why do rich people still keep a good portion of their wealth in cash reserves well two reasons one being able to access any opportunity that presents itself which is pretty self-explanatory if you think about it the deal of your dreams is in front of you and you don’t have the money to take advantage of it that would suck this is also the main reason why rich people save cash and two because they can get higher returns from Straight Cash deals not only do people offer better pricing for cash but you can also lend money with high interest this practice is called peer-to-peer lending if you’re low on income and willing to take this risk there are plenty of platforms out there that offer peer-to-peer lending Services basically you lend people your money and they pay you back with interest the average bank is offering under 1% interest on your deposit while peer-to-peer lending fluctuates from seven to as high as 15 or 20% but please keep in mind that if something is too good to be true it probably is maintain a rational mind when ever investing number two real estate this is a big one we personally love real estate why once again two reasons one rent payments money is coming in every single month with a minimum amount of work if you’re a bit smart you can take advantage of the technology improvements happening right now and instead of traditional rents do short-term rental for higher yields but it isn’t as passive and two the second argument is appreciation population numbers are going up and more and more people need a place to live or rent the demand is increasing so prices for properties are constantly going up and they forever will making real estate one of the better Investments that you could possibly make now in terms of real estate assets you’ve got one residential buildings where people live in your properties and pay you rent two Office Buildings people work in your property and they pay you rent three commercial buildings businesses use your space to sell stuff and pay you rent and four land which can be cultivated developed or even left as it is for appreciation now super important here the house you live in is not an asset okay it’s a liability it costs you money to live in it and it’s not putting any new money into your pocket number three bonds when governments or businesses might be in need of some cash they can issue something called bonds which are sold to interested investors now through these bonds the government or business vows to pay the person buying the bond a certain amount of money every month generally bonds have an expiry date on them from 1 month to 30 years these are super safe Investments because they’re mostly backed by the government as you probably know by now low risk in business translates to low reward as well bonds are usually in the 3% yearly return range which is better than what most banks offer but not high enough to get a beginner investor excited when the bond reaches its end the principal amount is returned to the investor the main ways that people buy bonds are one directly from the treasury Department or two through a brokerage firm number four stocks Now Stocks are not as complicated as all those Wall Street films make you believe stocks are an easy way for you to own a percentage of a publicly traded business so if a business issues 10 million shares and you own 1 million of those shares you’re a 10% owner in that business this incredible breakthrough in financial instruments has allowed the average person to own a stake in some of the most lucrative companies of our day with a very low entry barriers here’s how much you need to pay to purchase one share into these companies number five mutual and index funds if stocks allow you to purchase shares in a company one by one mutual and index funds bring multiple companies together so you’re buying into the entire basket of companies as a whole why is this better well basically you’re more Diversified so it’s a safer investment to make statistically index funds are one of the most best performing asset classes the five most popular index funds are the following in no particular order Fidelity zero large cap index Vanguard S&P 500 ETF spdr smp500 ETF trust I shares core S&P 500 ETF and Schwab S&P 500 Index Fund and look okay here’s the deal if you were to start buying stocks one at a time you’re statistically more likely to screw it up you’re not going to be one of those Miracle traders that beats the market year over year you don’t have that kind of info and it’s super complicated to try and compete with the big boys that is where the index fund comes in S&P 500 brings together the best 500 performing companies and when a company Falls from that top 500 it gets replaced with a new better performing one the average annualized return for the S&P 500 index over the past 90 years is 99.8% out of the five mentioned Vanguard is our top pick index funds should be an every portfolio of everyone who’s looking to build wealth longterm Number Six Equipment anything that generates money for you or helps you make money faster is considered an asset if you’re a farmer a tractor is an asset if you’re a programmer that laptop is an asset if you’re an Uber driver your car is an asset whether or not something is an asset or a liability changes depending on if it has a direct correlation to the money you are generating so unless your income is directly dependent on the car buying a new one is a liability and it’s very often that people confuse the two they try to justify it as an asset when in reality they’re mismanaging their own finances due to a lack of self-control you don’t need the most expensive laptop on the market to watch YouTube videos number seven patents patents are awesome okay for those of you unfamiliar with the term when you invent something new you can protect that invention by filing a patent it’s a document that certifies you as an inventor and describes in detail what your invention does with this protection in place companies have to pay you money in order to use your your invention and if they don’t you get to sue them patents are incredibly powerful and valuable in the business World a single patent can make you rich and all the best inventions are backed by patents just to put things into perspective here’s the most us patents received last year but you know it’s not just big companies that rely on patents remember the slinky it made over $3 billion in sales Scott Singer invented the cush ball which was bought by Hasbro for $100 million back in ’97 the moving fish you saw on everyone’s wall years ago called Big Mouth belly bass that was also worth over $100 million and the list goes on like this the magic eightball hula hoops and anything you’ve seen on Shark Tank or the teleshopping channel number eight trademarks if patents protect your invention trademarks protect your symbols words or phrases it’s pretty obvious why this is a big deal when it comes to the logo or the name of a brand but here’s where things get super interesting if you own a valuable trademark that has marketable value you can license it to people to use it for commercial purposes and they have to pay you in return our alltime favorite is the story of Michael Buffer who in 1992 trademarked the catchphrase you can see right now on the screen I’m not going to say it but chances are you can hear it in your head it’s super catchy entertaining and every single time it said in a commercial manner you need to write Michael a check and since trademarking it get this okay he’s made over $400 million just from that one catchphrase and you know trademarks can be local or International but good luck enforcing it just to keep things interesting one in five us companies says there are companies in China infringing on their intellectual property and this is actually one of the main reasons why China has been growing so quickly the complete disregard for intellectual property rights China is stealing over $600 billion in IP from the rest of the world every single year which is wild okay but let’s get back to the topic at hand more assets that make you rich number nine brand and Goodwill now there are subtle differences between brand and Goodwill but both are very valuable to any business a brand is the footprint a company leaves in the minds of its consumers what they stand for but they present themselves as being Goodwill is the emotional affection people have toward the brand a brand is owned it’s an effort the company is making to push a particular image of itself into the marketplace Goodwill comes from the way the company treats its customers the positive impact it has on the community and how grateful people are that the company exists Goodwill is super hard to cultivate or scale but people will literally save companies from Bank rupy because of the Goodwill they have for it and there are companies that become incredible successes just through branding the cardashian family is a great example here if Kim or Kylie attach their name to something it can drive sales like nobody’s business we’re not sure if Kylie’s lip kits are any better than the competitions but it did make her a billionaire also remember when Kim kardashi made over a million dollars per minute from her kimoji app that was nuts now of course there are other examples that might even drive this narrative better take a simple black t-shirt for example you can buy them for less than $2 a pop but put a Disney logo on there and now they’re worth $10.99 just because of the intangible value that brand brings to the shirt number 10 people you don’t realize just how valuable an asset that people are until they leave very few people understand that companies aren’t actually real companies are a figment of imagination validated by the state companies are names ideas and The Innovation happening under this imaginary umbrella and who comes up with all of these it’s the people in that company a single person can shift a company with their ideas just look at the impact replacing Steve Jobs with the former Pepsi CEO had on Apple nearly bankrupting what is today probably the most loved technology brand and digging deeper into Apple their lead product designer Johnny I youve designed the products that are now in the hands of billions then there are the teams that make the company as a whole there have been cases where bigger companies have acquired startups just to bring those people in house there’s actually a term for it it’s called aqu hire hire the right people and they’ll make you rich ideally nobody in your company should be Irreplaceable but the harder someone is to replace within an organization the more valuable an asset they become and if your goal is to position yourself this way if you want to be one of the most valuable assets at your organization we’ve got you covered with the alux app with a subscription not only do you get access to a fresh coaching session every single day but you’ve got access to over 100 curated collections of lessons designed to have you reach your goals in a fraction of the time it would take you otherwise there are two specific collections I’d like to highlight for you now because they’d be perfect for this one is called pep talks for your promotion the other I want to advance my career and they’re included with your subscription to the alux app and as a little bonus scan the QR code on screen and you’ll get 50% off your yearly plan number 11 raw materials and commodities the price of raw materials and commodities fluctuates and varies depending on the market if you’re smart about it you buy it when it’s cheap hold it and then sell it when it’s in high demand this applies to everything in life from currency to oil to gold to crypto luxury cars and art over the past 15 years the price of gold has increased by 221 this might come as a shock to most of you but we love art as an alternative asset class very few people know this but art has been outperforming the SMP for the last 20 years this is one of the big reasons why you see the wealthy dropping stupid money on Art because it’s making them even richer the same goes with vintage cars while your car is costing you money some of the wealthiest people in the world are buying rare vintage cars that are quickly appreciating in value and the same goes for other Collectibles like luxury watches now before you go and blow all your money on a vintage Rolex because you read some post on Kora about how they double in value over time you might want to take a quick breather never invest in things you do not understand it’s one of the most important rules of money disobey it and you’ll never be rich number 12 books songs digital courses information or content information is an incredible thing to be selling because it’s infinitely scalable you write the book once and then you can sell it a million times same goes for a digital course a song or any other type of info or digital product creating and distributing such an asset increases not only the value of the business but can also make you rich the moment your product is done your job is to promote it and get it in the hands of as many people as you can with music it’s even more interesting because you only have to get it right once and you could literally be set for life Gangam Style is a good example of this one Sai made over $10 million just from that one song distributed via YouTube and iTunes not to mention merch shows licensing and so on Mariah Carey makes around $500,000 every single year from one hits song you all know and love all I want for Christmas that song alone has made her over $60 million to date and on a similar note number 13 royalties now we’ve brushed a bit on royalties in the previous points but there’s an entire world revolving around them the simplest way to put it you wrote a book that’s great a movie studio wants to buy the rights to your book and make a TV show out of it in exchange you’re getting a portion of the money generated let’s say TV show is Friends you’ve made a ton of money already the show wraps up after 12 seasons and you’re already rich but it doesn’t stop there no no there’s a term called syndication that’s when a TV show becomes so big it makes sense to open it up to multiple broadcasters so keeping with a friend’s example the cast of the TV show is still earning to this day between1 and $20 million per year each from the reruns of the show that’s insane royalties apply to everything that has to do with your intellectual property royalties made George Lucas a billionaire when he proposed Star Wars to Studios they didn’t give it much thought assuming it was likely going to flop instead of paying George $500,000 in director’s fees Fox allowed Lucas to maintain the licensing and Merchandising rights long story short the movie is a massive success and by 2011 the toys and merch have brought in over $3 billion in order to make up for their mistakes dis dis bought lucas films for $4 billion and it took Disney just 6 years to recoup their investment number 14 unique rights now we wanted to mention this because there are instances where some parties might have an unfair competitive Advantage which counts as an asset for example in the US there’s something called the Indian gaming regulatory act which grants Native Americans the rights to all types of gambling activities regulated under state law law anything from specialty licenses to geographical advantages can be considered an asset if it grants you a competitive advantage in the marketplace the church is another example since they don’t have to pay taxes and this happens all over the world in Eastern Europe almost every church is run like a business they have products merch services that cost money all tax exempt same goes for art museums and fraternal organizations and number 15 first mover advantage and proprietary business models whenever you innovate in a commercial manner this Innovation is regarded as an asset the app store by Apple is one of those Innovations the microtransactions in games are a newvo business model the fact that Netflix evolved from delivering solid tangible DVDs to a streaming service has been regarded as a very valuable asset for the company it gave them the edge to capture market share while everyone else was is still on the sidelines it took a couple of years for other companies to catch on and now streaming services are everywhere the same thing happened to music you used to purchase physical albums then digital albums now you just pay for Spotify title or YouTube premium Airbnb disrupted the hotel industry with a new way to rent short-term accommodations your job is to figure out a way to take advantage of any of the assets mentioned in this video and secure a bag for yourself if you made it this far into the video we’re curious to know which of these assets do you plan to secure in the future we can’t wait to hear from you in the comments and we know okay this was a long video but it was filled with educational value and we hope you got your time’s worth for those of you still watching here’s a bonus piece of info the time money time Arbitrage so this is one of those things they don’t teach you in business school but if you pay attention it’s probably the most valuable thing you’ll ever learn at this point in time you might not have the financial resources to purchase all the assets we mentioned but you’ve got an asset that you can exchange for money and from the subtitle you probably figured out we’re talking about time okay so the time money time Arbitrage is when you use time to generate money then use that money to buy other people’s time that’s how you exponentially grow time working for you now I know it might sound a bit confusing at first but we’ll break it down for you pay attention because this is valuable basically your job is to identify opportunities where you can convert time into money and you do that for some time until you have enough money to bring in another person because you’ve generated this opportunity you can pay this person less than the money you’re earning for that time and pocketing the difference this is a fundamental business lesson it’s why every single company has employees every single person in an organization is generating more value for that company than they’re being paid and that company is keeping the difference this is called profit this profit is the reward for solving that time money time Arbitrage problem so if you’re new to business work your ass off trading your own time for money and then figure out how you can use this Arbitrage to build a real business every business owner out there understands this methodology but very few other people know about it because well they’re not thinking like a business owner now you do and we look forward to finding out what what you’re going to do with that information if you’ve made it this far and you understand the time money time concept please write TMT in the comments of this video everyone else will be baffled by your comment but we will know who the true alers areWelcome to Big Money Investing – Your Ultimate Destination for In The Money Facts!
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