According to www.dictionary.com an asset is a useful and desirable thing or quality: Organizational ability is an asset. A single item of ownership having exchange value. So, can you reply to this question: what is your biggest asset? Is it your car, your house, money, your investments in the stock market (bonds, stocks) or your real estate investment? Maybe your diploma degree from the college? All the options above are not bad, but keep in mind that YOU ARE YOUR BIGGEST ASSET.
So, you might be thinking: Okila, why can’t I consider my house or my money my biggest asset? Interesting question and together we will discover why. When someone knows the importance of Investing in themselves, their way of thinking literally changes. That person is willing to learn and master skills that will help them make money and keep it. You can get as much money as possible, but if you don’t learn how to keep it, its guaranteed that you will lose it. Why do most lottery winners end up broke? is it a curse? No, it’s not a curse. In most cases they skip the first and most important step: investing in themselves.
4 days ago I was reading a sad story about Callie Rogers from http://www.therichest.com. What happened to this young women is something I hope all of us can learn from. At 16, Callie was the youngest person ever to win the lottery in the United Kingdom. She won 1.9 million pounds and her inexperience with money was sadly evident in the way she managed the money. Today she has nowhere near the 1.9 million pounds she was awarded in 2003. She blew the money on plastic surgery, drugs and parties. Now at 26, Rogers says she is much happier and is studying nursing. Her wealth drove her to despair and as of last year, her net worth totaled no more than 2,000 pounds.
According to the U.S National Endowment for Financial Education, about 70% percent of people that win the lottery or get a big windfall end-up broke in a few years. So based on this facts, it’s safe to say that this people losing their money wasn’t a curse. They just happened to have made the number one mistake that should be avoided: “THEY RELIED ON THEIR MONEY AND CONSIDERED IT THEIR BIGGEST ASSET”
I remember last year when I told my mentor that I wanted to start investing in the stock market. He asked me quietly if I knew how the stock market works? I replied No, I don’t. Then He stated, James if you want to start trading stocks or investing, the first step you need to take is understanding how the stock market works. If you don’t understand, then you are planning on GAMBLING. INVEST FIRST IN YOURSELF, by acquiring the information required.
Warren Buffet, one of the greatest investors and businessman of all time, encourages us young people in his latest eponymous book “Warren Buffet” TO INVEST FIRST IN OURSELVES if we want to be successful in the long run. So in my case, that meant me learning more about the stock market before starting investing. It’s very important to learn how money works. If you don’t, you fall at risk of working for a paycheck until you retire
Ask yourself this question: why do some rich people recover from a bankruptcy and others don’t? Please take a moment and reflect on this question. If you paid attention to the example mentioned earlier about Rogers, you most likely came up with the right answer. The Rich people that recovered from bankruptcy or bad times knew they were their biggest asset. During the process of getting rich, they had acquired skills that no matter the circumstances they were in, will help them earn more money and keep it. So even though they might have lost all their wealth, they have what it takes to attract more money. They are what people refer to as “money magnets”.
On the other hand, the rich people that fail to rise from their adversities are usually the ones who became wealthy fast. Usually through lottery or a generous inheritance. They tend to acquire a lot of liabilities like a mansion and expensive cars. And the worse part of it all, they consider this things their biggest assets. They are usually euphoric and think they are invincible. They don’t see the importance in taking time to learn valuable skills needed to succeed and to stay successful. That is why they don’t usually recover from such crashes.
The beautiful thing about our generation is that there is information everywhere. WE DON’T HAVE TO MAKE THE SAME OTHERS HAVE MADE. We can just simply learn from them and make better choices. So, the choice is yours : what is your biggest asset going to be, the things you own or yourself?