Tuesday, July 15, 2008

Stuff or Assets?

In an earlier post we talked about owning stuff. Owning stuff is lots of fun. Shopping is fun and playing with toys is fun. But will it get you where you want to go in life?

Stuff: Inexpensive things people buy that they don't really need.
Assets: Things that earn you money.
Investment: Spending your money on assets, things that can earn you money

Buy assets, thing that earn you money.

Education may be one of the most important assets you can buy. If you think education is expensive, just look at the price of stupidity! But remember, education isn't always a college degree. So many college degrees have been watered down to the point of uselessness. Education is books, tapes, seminars, podcasts, RSS feeds, lunches with people who are wiser than you.

Basic business education will teach you some of the following business principles followed by any successful business owner.

1. Look for a huge expanding market of customers
2. Provide a unique consumable product
3. Timing
Trends - making money or losing money?
Baby boom generation creating trends 65% of all money
Every 8 seconds someone is turning 60.
Looking Younger
Retirement Issues
Efficiencies, simplifying technologies
4. Employ others so you get more done
Work for someone else - you are limited by your time
Be a professional - pay is better, but you are still limited by your time
Exchange expertise for someone's dollars
Own your own business
Sole proprietorship eventually run out of time or talent
Employ others, leverage efforts of others

Wealth is created either by people at work or money at work