Dan Lok | 3 Assets Rich People Have | Big Life

The rich buy assets, the poor only have expenses, and the middle class, and they buy liabilities, thinking that they are assets. Today I’m gonna teach you the three assets that rich people have. As a media personality, I’ve had the privilege of sitting down and interviewing hundreds of some of the most successful people in the world through my podcast, The Dan Lok Show. Now, in spite, it doesn’t matter what industry they’re in and they are from all walks of life, what I’ve noticed is, all these successful people have created their wealth in three main asset classes.

-ASSET CLASS NUMBER 1

*BUSINESSES:

A business they start themselves, or a business that they are partner of. Or in some cases, someone else’s business that they have invested in, or it could be a business that they founded so many years ago that they sold. But most of the time, they have created their wealth in businesses.

-ASSET CLASS NUMBER 2

*STOCKS:

They have stocks, index funds, mutual funds, options. What I notice is, rich people, they like stocks. They have a stock portfolio because of liquidity that they could sell and get cash any time they want, they can turn that shares into money. And also in some cases, of course, future earnings and appreciations. Sometimes they invest for the dividends. So dividend stocks. So they have paper assets.

-ASSET CLASS NUMBER 3

* REAL ESTATE.

Now most wealthy people, they either have created their wealth through real estate or they hold their wealth in real estate. I’m talking about rental properties. It could be condos, houses, commercial properties, apartment buildings, right, there’s so many different kinds of real estate. It also could be land. Land that they lease out to farmers or vendors. It could also be mortgages, we call them notes, right, papers. That could be also part of their investment strategies. It could also be parking lots. Those are cool. Or self-storage units, those are cool, too. Or it could be REIT, R, E, I, T, real estate investment trust, right. So what I’ve noticed is they have their money, they hold their wealth in real estate, one form or another.

So those are the three main asset classes that rich people have. So I want you to ask yourself, what type of assets do you have? Are you working towards acquiring some kind an assets or building some kind of assets? Now, when it comes to investing, you want to keep it nice and boring. Don’t make it fancy. It’s like martial art, basic punch, basic kicks, they are the best. Yeah, you can do the jumping, flying kickstand all that stuff, but you don’t want to do that. You want to keep it very, very boring. If you’re having conversations with a buddy every weekend about, hey, look at my latest investment, look at my latest thing I just put my money in, that’s not a good sign. You want it to be boring, you want it to be like, same stuff, nothing changes. And a year later, sit down with them and say, yeah, kind the same. That’s the best. You want assets that are nice and boring that just chunks cash flow, right, day in and day out. Appreciates and produces cash flow for you. Very, very simple.