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What is your Primary Asset ?
Whatever puts most income into your pocket is your primary asset, your job, your main business, your best agency. This is the asset that initially allows you to purchase your buy to hold other assets, your passive income providers. It is vital that you protect this asset. A Buy to Hold Asset is defined as one that you keep forever (unless you can trade it for one that provides even greater income.) For this reason you should have PHI, Permanent Health Insurance a.k.a. Permanent Income Indemnity or Income Protection Insurance. It will pay a percentage of your income if you cannot work. If you don't have it, when you stop working, your income stops too. Your expenses do not stop just because your income does. The result is that you start to strip out your other assets, cash first, in order to survive. You then start to sell off your assets in order of decreasing liquidity just to live. Please note that I am using the term "asset" here in the sense that an accountant would. Once they are gone, you still have no income and nothing left to feed you.
Once you start to work for money, you should put this insurance in place and review it annually adjusting upwards by 5% to allow for inflation. Beware of the sales people - shop around for the best deal because you do not want to pay too much for it. At review time, shop around again and change provider if a better deal comes along. Counterintuitively, this is in fact a part of your master plan to create wealth for yourself. It gives you the peace of mind to be more creative in your thinking.
The Dream Game
The definition of ingenuity is that it is the invisible thought process that turns a liability or neutral possession into an asset.
The real power that you have is your thought process. The secret of this power is in developing your follow-through. Acquire the practical skills needed for follow through.
Do not work simply for money. Your real job is to create assets.
The acid test of an asset is to ask if you can pass it on to your loved ones. If you can and it continues to put money into their pockets then it truly is an asset.
The Ten Principal Upanishads
Always go for he biggest and the best. When constructing a financial plan, for instance, make one for the whole of your life, not just for a year. Indeed you should have a plan for 1, 5, 10, 20, 40 and 50 years hence. Commit yourself to the long term goal of being fnancially free. Set and achieve goals for your income, expenditure, profit and asset acquisition. Think in terms of your whole life and beyond that to your children and grandchildren's lifetimes.
Your brain is the most powerful computer on he planet. We will never be able to build a machine that can do all the things your brain does. Do not let it be used to make you poor or miserable. Use it instead to make you rich and happy. Train your mind to acquire assets. Train it to make you take a little action every day that moves you closer to buying something that will put money in your pocket - a business, rental property, stocks or shares. Each day, grow your asset column even if only by a few Euros.
