Buying Asset Vs. Investing Money

If you have money, you can do three things:

Spend your money on luxuries

Buy assets

Invest in the market

If you have a lot of money, spending some portion of it on luxuries, for example, going to the Bahamas or a cruise, buying a luxury car, an Armani suit, or a Gucci bag, etc. can be considered ok. However, spending everything you have is not a good idea. You will have to either buy assets or invest in the market, or do both.

Therefore, a better way to use your money is to either buy assets or invest in the market or do both.

Buying Asset Vs. Investing Money

When you are investing and buying assets, you will earn a return on your investment and you make profits.

By the way, what do you think is the better approach to use your money, if you have to choose one, buying assets or investing?

If your risk tolerance level is very low, you should stick to buying assets because it is generally believed that your assets are not prone to market risk. However, if you have a high-risk tolerance level, you can invest. Investing will give you more profits compared to your assets. 

If you want to build your net worth, investing is the right strategy because investing will compound your wealth. However, if you want to live a tension-free life, buying assets will be a better approach. Sometimes you can also earn really good profits by selling your assets.

Is Buying Assets the Best Way to Manage Money

Managing money means you pay off your debt, buy assets, invest, and save money. Once you pay off your debt, what do you think is a better approach to managing your money, saving money, buying assets, or investing money?

Saving money means you keep your money in banks, mainly saving accounts to receive some returns.

Buying assets means you buy a house, landed property, gold, etc. The value of your assets will grow over time and yield profits.

Investing means you invest in the stock market, equity, real estate, etc.

Saving money is the best strategy for people who do not want to take any risks.

Buying assets is the best strategy for people who have money to buy assets and who want to get better returns from their money.

Investing is for risk takes that are willing to take chances to earn more profits.

Before you save, invest or buy assets, you first need to pay off your debt because debt is one of the high expenses one will have. Having debt means you are unable to build a wealth system. After you have zero debt, you need to start saving, as well as buying assets and investing in the market. That’s how you build wealth.

What Will Make You More Successful: Assets or Investment

Do successful people save money, I don’t think so. I mean they do have some money in their bank account, or maybe a little in emergency funds. However, I believe they invest money in the market and use their money to make money even when they are sleeping. When they are not investing, they are also using their money to buy assets or build their own businesses. That’s why they are successful.  In order to become successful, you need to invest money and build your own business so that money flows in all directions. When you have money, there is nothing that you cannot do.

In order to become successful, you need to understand the distinction between assets and liabilities. When you buy a property for your personal need, it is a liability, however, if you buy a property for commercial purposes, for example renting and collecting rent, it will become an asset. You will have to know the distinction between assets and liabilities. If you buy a property that you intend to rent out to individuals and families you earn rental income. If your property is a commercial property that you can rent out to businesses, you will collect more money as rent. However, it cost more money to invest in commercial property compared to normal property. Investing more money comes as a risk.