One of the rules of the rich is that if you wish to stay wealthy, you need to either buy or create assets that produce value. In other words, you start a company that provides a good or service that people believe they need and are willing to purchase from you because they feel that the value of your product, service, information, or whatever is equal to or exceeds the price paid. This is generation of income. If the amount of income generated by your assets exceeds the amount
Of your costs, then you have made a profit. An entrepreneur is someone who solves people’s problems on a profit margin.
The key is to select attractive assets that can produce income or appreciate. An asset can either produce current income, appreciate (and depreciate), or both.
The choice of which is a decision that is personal in nature, but a good way to establish a baseline is to ask yourself if you were to stop working, would your assets continue to put food on the table and pay your monthly obligations? Having your investments not only sustain you but produce more than you need is
One way in which wealth was created for hundreds of years before Wall Street got so sophisticated and abstract that financial games came into the picture.