Assets build your Balance Sheet

Assets put money in your pocket and build your Balance Sheet
All you need to know is that assets will give you money and the more you have – the more rich you will be- yes that simple.
Try and you look around you and see what things give you money (excluding your parents). Things like  money in a savings account is an asset as it will put money in your pocket by the bank paying you interest.

Look at things like buildings,land equipment – these are all examples of physical assets – think also how they put money into the pockets of people or companies that own the asset- for example rent received from the building or products made by equipment for example if you have a coffee machine you can sell coffees .

Banks give you money – but this is never for free – the reason that they are able to do this is that they have large assets which generate millions of dollars of  income – I know this is very simple but essentially this is how it works.
The thing I want you to remember here is that you need to acquire assets – small ones to start off with and then over time, something called the compound affect will kick in – I will explain the compound affect in another definition.
An asset can also be knowledge that you have e.g. say you are an expert in drawing funny pictures – you can then sell these pictures to other people or teach them how to draw and charge money for teaching people to draw.

 How to build your balance sheet