Most of us focus on maximising our income thinking that it will automatically lead to our success in Personal Finance. While it is true that higher income can lead to your wealth but the most important aspect which has to be focused is your ‘Asset’ column. As you may be aware that ‘asset’ is one that puts money in your pocket and hence can make you wealthy faster with better focus.
Let us discuss a few major advantages of building your asset column:
- Even when you begin small, without your knowledge your asset column will grow, of course depending on the quality of your asset. For example, even if you start investing Rs. 5000 p.m. (I am not giving any targets!) in Mutual Funds, it can build into a huge asset over a period of 20 years. There is no better way to utilise ‘The Magical Power of compounding’ than building your asset column.
- You can start getting passive income very early. When you get passive income, it boosts your focus and this will encourage you to increase your asset column. It is same as, "Success leads to more success". That is why quick start is essential.
- As you start building your asset column, your risk taking ability will improve. You will be in a position to participate in markets that can give higher yields. Of course, you need to do this with proper and continuous education of those markets and in consultation with your Financial Mentor. In fact, when you keep increasing the size of your asset column, you will be offered some investments that are virtually exclusive to a privileged few.
- There is no better way to reward our family members than to build a large asset column, which acts as a great psychological security! It is likely that some of your family members may not initially understand or appreciate this, but hopefully they will over the years.
Let me very frank; I did not know all these, when I began my career in 1979. In retrospect, I wish I knew and applied myself in building my ‘asset’ column. That is the reason for our sharing so that many people who are beginning their career can benefit. Our simple message is, “Giving equal importance to building your ‘asset’ column as you do for building your income is the smartest thing to do in the lovely journey of your Personal Finance.” Truly, it will be our delight to write about your success in our ‘celebration’ page!
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