Ever walked into a bank and see words like 'Asset Accumulation', 'Asset Protection', or 'Wealth Management'? Ever thought, "Wow! They sound like such hard concepts," or "How rich must these people be?"
Well, these are all nothing but technical terms. Remember, every profession has its fancy terms! The important thing is to not be scared of them, but rather to understand what they simply mean and how it applies to you.
Asset = whatever you have that brings you a benefit, mostly monetary.
Accumulation = having more than one asset or different kinds of assets and adding to that pile.
Management = some smart guy in a suit telling you how to make more from those assets.
So let's just see, if at this stage, between age 20 to 40, if you have any assets:
Income from a source?
Land or home which can be used for rent, collateral, or outright sale?
A car?
Some stocks, fixed deposits, shares, or any kind of savings in the bank?
Your jewellery?
A trust fund or inheritance?
These are all your assets. Whether or not they total up to a $100 or $1,000 or even $1 Million, this is your Asset Accumulation. Asset Management is the advice you apply to protect and grow those assets.
Since you are your greatest human resource, you become the instrument through which you create assets. As you begin to accumulate your assets, you have to know that protection should follow naturally. Imagine if a man buys eggs, and put them all in one fragile glass bowl with nothing to protect that bowl. Foolish? Yes. Common mistake? More than you can imagine! In fact, you're probably guilty of it too.
So, just remember these two elements: Protecting and Growing.
Protect First. Grow Next. Protect Again.
You are your greatest asset. You are the tool that creates your asset. First, protect yourself. Once you understand that you are your first and biggest asset, you'll rush to provide security so you can be the gift that keeps on giving for a long time.
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