In previous posts, I have mentioned that owning assets is a must for building wealth. An asset is something that puts money in your account. Assets are so important that, in my opinion, it is the only thing you should spend earned income on. I thought by sharing a short story it might help to drown out all the noise and provide a simple example of how buying assets can increase wealth.
A long time ago in a small village far far away, there was a town that had trouble providing fresh water to its villagers. The small village was located in an area where the water table had receded and the local well no longer had any water. Villagers had tried to dig the well deeper, however, the thick rock prevented the well from being deepened.
The local village leaders, not having any freshwater, called on a few strong villagers to spend most of the day, every day carrying buckets of water from a local stream about a mile away to well. For this work the two villagers were paid handsomely for their efforts, allowing everyone in the village to have access to freshwater. After a year of this, the one water carrier said to the other why don’t we dig a trench after work every day? Over time we will have a pipeline that will provide fresh water to the well. The other one said, why would we do that? I like my free time and if we do that we will be out of a job. So they both parted ways. The following day the first water carrier did this daily work of toting water to the well, but after work, he walked back to the stream a began digging a trench and started creating a pipeline. Every day, after work he would take some of his pay and buy some pipe from a local merchant and then carry the pipe back to the trench and continue work on his pipeline. After 6 months, the pipeline was connected to the well and from that point on the village had fresh running water. Neither of the two water carriers had to carry water from the stream anymore.
The Village leaders paid the first water-toting villager (now pipeline owner) for the use of his pipeline. The other water toter no longer had a job as there was no need for the village to pay him to get water from the stream, as that need had been solved. From this point on the Pipeline was a great source of wealth for the villager and he was able to turn his attention to other interests and collect a sum of money daily from the Village for the use of his asset, the pipeline. By using learned skills and earned income the villager was able to invest in an asset. Over time, this asset provided income that did not require the villager to work (passive income). By taking earned income (the money received from work) the villager was able to invest in the asset the pipepine. This is the importance of assets and the proper use of earned income.
In the future, if you are thinking about using earned income to buy liabilities (something that takes money out of your account) or using it to pay for expenses, instead consider using earned income to buy assets. One quick way to get started buying assets is to invest in cryptocurrency at Crypto.com. You can set up an account and buy Crypto assets and then loan coins or tokens out for interest.
The interest earned is provided in crypto and over time will compound. This is a great way to earn passive income and get started on building your very own pipeline. As you can see from the image above, you can lock up Crypto in an earn contract for 3 months and earn up to 14% per year on stable coins and up to 8.5% on cryptos.
Disclaimer: I am not a registered investment, legal, tax, or financial advisor. All investment /financial opinions expressed in this post are from the personal research and experience of the owner of this account and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with or independently research and verify the information that you find in this post to rely upon, whether for the purpose of making investment decisions or otherwise.
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