10 Assets That Are Making People RICH

Summary

This video script from the Better Man Project discusses the top ten assets that are currently making people wealthy. It starts with a definition of assets by Robert Kiyosaki and then lists assets such as stocks, bonds, real estate, REITs, businesses, index funds, patents and trademarks, digital products, copyrights, and social media brands. The script emphasizes the importance of diversification, passive income, and leveraging intellectual property to grow wealth, while also highlighting the potential of social media for building a strong personal brand.

Takeaways

• 💰 Wealthy individuals diversify their income sources and focus on accumulating assets that generate wealth over time.
• 📈 Stocks have historically been a significant asset for wealth creation, with the potential for high returns exemplified by Apple's stock performance from 1980 to 2020.
• 💼 Bonds are debt instruments that provide a safer investment option compared to stocks, with a steady return through interest payments.
• 🏠 Real estate is a versatile asset that can generate income through rental properties and appreciate in value over time, offering both passive income and capital gains.
• 🏢 Real Estate Investment Trusts (REITs) offer a way to invest in real estate without the direct management, providing diversification and the benefits of real estate ownership through share ownership.
• 🚀 Building a business requires significant effort but can become a passive income generator once it is systematized and scaled.
• 🌐 Index funds offer instant diversification and lower operating expenses, reducing risk by tracking a market sector rather than individual stocks.
• 💡 Patents and trademarks protect intellectual property and can generate residual income through licensing agreements with companies.
• 📚 Digital products, such as courses, plugins, and presets, are one-time creations that can provide ongoing passive income.
• 📖 Copyrights protect original works and can generate royalties from sales, adaptations, and licensing of intellectual property.
• 📱 Social media brands offer the potential for building an audience and monetizing through various channels, with low barriers to entry and high interaction potential.

Q & A

What is the definition of an asset according to Robert Kiyosaki?

An asset is an object, property, or any possession that puts money in your pocket, as defined by Robert Kiyosaki in his popular book 'Rich Dad Poor Dad'.

How can stocks make people wealthy over time?

Stocks can make people wealthy by increasing in value over time and through the collection of dividends, providing passive income and potential for capital appreciation.

What is the potential return on investment for someone who bought Apple stock in 1980?

If someone bought $120 of Apple stock in 1980, it would be worth over $180,000 today, showcasing the potential for significant long-term returns.

How do bonds differ from stocks as an investment?

Bonds are a form of debt that investors lend to companies or governments, receiving interest payments, whereas stocks represent ownership in a company with entitlement to its growth and profitability.

Why are bonds considered safer investments than stocks?

Bonds are considered safer because they are loans that must be repaid with interest, regardless of the company's market value, reducing the risk of loss compared to stocks.

What is the role of real estate in wealth creation?

Real estate can create wealth through rental income, property appreciation, and leveraging debt to build equity in the property, providing passive income and asset growth.

What is a Real Estate Investment Trust (REIT) and how does it work?

A REIT is a company that owns and operates real estate properties, allowing investors to buy shares and receive dividends from the cash flow generated by these properties, offering a way to invest in real estate without direct ownership.

Why are index funds considered a safer investment option compared to individual stocks?

Index funds are safer because they provide instant diversification by tracking a section of the market, such as the S&P 500, reducing the risk associated with investing in a single company.

How can patents and trademarks generate income for inventors and creators?

Patents and trademarks protect inventions and intellectual properties, allowing the owners to license these to companies for residual income or royalties, providing a passive revenue stream.

What are digital products and how do they contribute to passive income?

Digital products are intangible goods like e-books, online courses, or software that can be created once and sold repeatedly, generating passive income with minimal ongoing effort.

How do copyrights protect creators and generate income?

Copyrights protect original works such as books, music, and poetry, allowing creators to receive royalties every time their work is used, sold, or adapted, providing a continuous income source.

What is the significance of a strong social media brand in wealth creation?

A strong social media brand can attract a large audience and build relationships, enabling influencers and businesses to monetize their platforms through advertising, sponsored content, and product sales.