How to create assets

Question

Roger Raber · Accepted Answer

Creating assets is increasing the amount of money or access to money that you have.This is typically done by purchasing or acquiring items that have present or future value.

Asset creation depends on this access to money and often builds upon itself. An example of this growth is when land is purchased with someone's cash savings.

The purchased property is not an asset and can be used to access additional money to build a structure on the property and create a business. The building also becomes an asset as do the intellectual and tangible assets that exist because of the business.

Some created assets provide long-term security such as property investment, while others offer short-term earning potential and risk, such as stocks.