Assets is all that can bring cash. A liability, respectively, is everything that takes this money away. According to many economists, in order to become rich, you need to get rid of liabilities and acquire assets. Yes, this is a simple formula, but if you look, then it is so.
Many people who are not familiar with economic theme these concepts are often confused, but if you look, it is not at all difficult to understand their differences, because these are completely opposite definitions.
In order to answer the question of how to acquire assets, you need to understand for what purpose they need to be attracted to yourself, and on the contrary, move away from liabilities as far as possible.
In simple words, we can say that an asset is the generation of cash flow, that is, the sale of what you have.
The following things can act as an asset:
But the car and the apartment where you live is a liability, because you invest in these things yourself, take care of them and spend money on their maintenance. And, for example, if you work in a taxi with your car, then it acts as an asset. Passive This is something that can take money.
Below are some tips for how to acquire assets. If you have chosen real estate as assets, then it is best if these are foreign assets from which you can get a higher income. You just need to be wise in choosing a country, it is worth remembering that it must first of all be economically developed. If you learn everything from you, then you can receive rental income up to thirty percent per year.
If you do not have enough money to buy a home, then you can also buy it on credit, cooperating with banks in other states, in practice it shows that there are more profitable offer for clients. But if this option does not suit you, then you can buy real estate under construction, and when the time comes, sell it profitably.
Good income will be brought by developing companies, only you first need to study this area of the market.
If you want to work with assets, but do not have the opportunity to acquire them, you need to start saving for them. Ten percent of each salary must be set aside to invest assets. At first glance, this may not seem profitable, but in practice it brings a good income.
You have to remember to earn big money only those who invest heavily in assets can.
Everyone should get as much knowledge as possible about how to profitably buy assets and limit their liabilities.
The video below shows what they are.
An asset is anything that can bring financial resources. A liability, respectively, is everything that takes this money away. As many economists calculate, in order to become rich, you need to get rid of liabilities and buy assets.
Yes, this is a simple formula, but if you figure it out, then this is how it is.
Many people who are not familiar with the economic topic quite often confuse these concepts, but if you figure it out, it is not at all difficult to realize their differences, since these are completely opposite definitions.
To answer the question of how to buy assets, you need to understand for what purpose they need to be attracted to yourself, and on the contrary, move away from liabilities as far as possible.
In simple words, it is possible to say that an asset is a generation financial flow, in other words, the sale of what you have.
The following things can act as an asset:
But the apartment and car where you live is a liability. because you invest in these things yourself, take care of them and spend money on their maintenance. And, for example, if you work in a taxi in your car, then it acts as an asset.
A liability is something that can take money away.
A couple of tips on how to buy assets will be outlined below. In the event that you have chosen real estate as assets, then it is more optimal if these are foreign assets from which it is possible to take a larger income. It is only necessary to choose a country wisely, it is worth remembering that, first of all, it must be economically developed.
If you learn everything from you, then it is possible to acquire rental income up to thirty percent per year.
If you do not have enough money to buy a home, then it is possible to buy it on credit, cooperating with banks in other countries, in practice it shows that there are better offers for customers in that place. But if this option does not suit you, then it is possible to buy real estate under construction, and at the time when the time comes it is profitable to sell it.
A good income will bring shares of developing companies, it is only necessary to first study this area of the market.
If you want to work with assets, but do not have the opportunity to buy them, you need to start saving for them. Every wages it is necessary to set aside ten percent for investing assets. At first glance, this may not seem profitable, but in practice it brings a good income.
It must be remembered that only those who invest huge amounts of money in them will be able to get huge money from assets.
Do you want to get rich? Just don’t think about how to live from paycheck to paycheck, but know for sure that in any case, a certain amount will arrive in your bank account every month?
Then you have to take a short course in applied accounting for home use and figure out what your individual assets and liabilities are, what makes a person richer, and what invariably leads to poverty.
Any balance sheet consists of two parts: active and passive. But we will not deal with the intricacies of accounting, we will understand one thing for ourselves: an asset is what makes a profit and a liability is what takes profit, that is, your money.
In relation to your own wallet, you can say this: income-generating sources (various kinds of business, salary) are an asset, and sources that require spending ( communal payments, auto insurance, credit, taxes, etc.) - a liability.
Robert Kiyosaki described this concept very well. The table below clearly shows what generates income and what takes it away:
simple circuit Roberta Kiyosaki showing us how the sources of assets and liabilities are affected.
But money can also get into the wallet in different ways. If it is borrowed money, then we will have to give it back, and sometimes even with interest. Then it is no longer an asset, but a full-fledged and burdensome liability. Manage your own cash flows – the main task, which stands in front of a person who wants to achieve sustainable well-being.
They can become your assets.
Even at the most basic level, it can contribute to the formation of the worldview of a wealthy person. A rich person really thinks differently. His thought is not aimed at spending the accumulated money and buying another yacht. He is puzzled primarily by increasing his capital, which will bring profit.
In order to live without knowing a special need, it is necessary to keep your assets and liabilities in a state of balance. Try to make a list of your own assets: most people will have only one figure in this column - monthly salary. But the passive will be overloaded. There will be utility bills, and the cost of maintaining yourself and your family, and debts, and payments on loans.
Yours from external circumstances begins when the increase in the asset column and the reduction of liabilities begin. And here the point is not to increase the figure, which denotes monthly income in the form of wages. It is important to increase assets in a qualitative state and reduce liabilities in a quantitative one. As boring as it sounds but you need to learn how to save money wisely. And instead of unreasonable and unnecessary spending, invest in the acquisition of assets.
Ideally, assets generate income for their owner without his participation. For example, you put money on a deposit. The bank accrues interest to you, your participation in the formation of income ended with the procedure for making an initial deposit. Further, the asset is formed independently. Subsequently, your management of the created asset can continue in the direction of its increase: you can replenish your account, transfer money to a deposit with more profitable interest, withdraw money and invest it in stocks, gold, etc.
So your "active" column will multiply and diversify. The day will come when you won't have to worry about losing your paycheck. The money you invested will work for you. And if you continue the process of investing in profitable financial instruments, you can consider yourself a wealthy person.
Below you will find some useful articles that will help you take the first steps towards financial independence:
So what is the difference between the rich and the poor? Rich man:
To achieve sustainable well-being, it is not enough just to learn how to make money. To reduce the share of liabilities in your balance sheet, you need to learn constant self-control in spending and spend money so that the liability turns into an asset as a result.
For example, you decide to invest in real estate. If it is used by you personally, then, despite such a seemingly significant purchase, indicating the availability of finances, it will be an unequivocal liability for you. After all, you will have to pay for the maintenance of the apartment, utility bills, and from time to time make repairs.
And if the same purchased apartment will be used for renting, and the amount of monthly income from its delivery will exceed the costs of maintenance and operation, then the apartment can be recognized as an asset, because you receive income from owning this property.
In conclusion, I would like to give a few practical advice to master the skills of a rich man.
It is more important to think about your money once a month
than 30 days to earn them.
J. Rockefeller.
Friends, we have already introduced you to. I hope our initial tips will help you find the 10-15% difference between your income and expenses in order to start saving and investing. In this step, we will look at how to make your free money work. But before each of you can answer the question of where to invest in 2015, let's analyze the basic investment options and compare them with each other according to a number of criteria.
Let me remind you that we have already introduced our own classification of investment instruments by type of risk and level of return:
Today we will make more detailed map financial instruments. Let's learn about the new options. Such as liquidity, starting amount, additional costs associated with investments. Let's break down the investment methods so you can figure out what's right for you.
The very first and most understandable investment instrument for most people is a bank deposit.
Difficulty / activity: The easiest and most affordable investment tool for everyone. No activity is required from the investor; now, in most banks, deposits can even be opened online.
Yield: Low. By low yield, we mean such a level of rates that only allows you to save money from inflation, but not to increase it.
Income Predictability: 100%. You see the bet before the trade starts. Rates, as a rule, do not change during the term of the contract.
: High. High liquidity means you can withdraw your money at any time.
starting amount: from 1000 rubles.
Additional costs: usually not, but they can give you debit card, for which there will be a paid service or to which an overdraft will be attached. Here is the advice - come to the bank for a deposit, ask only for a deposit - check everything else and ask how much it will cost, even if they immediately say that it is free.
An airbag is a reserve in case of job loss or other problems, using which you can live peacefully for several months. It is better to form such a reserve on deposits, because with other assets there may be problems with the prompt withdrawal of funds.
Intermediate storage. For example, you save up for a car or an apartment, save 100 tr. per month. You have 4 months left to reach the required amount. You are simultaneously looking for the right asset, and the money is on deposit. In any case, it is more profitable than storing them at home.
It is also easiest to apply the currency diversification rule to deposits. It is enough to open a multi-currency deposit or 2-3 deposits in different currencies. It is worth paying attention to the fact that inside such a deposit you can move money only at the rate of this bank. For example, I once had a similar contribution in Svyaznoy, the courses in which were not the most profitable, it was a shame. :-)
Consider other investment tools.
Difficulty / activity: High. The tool is more for professionals. Even if you are a long-term investor and not a trader, you need a lot of activity to keep abreast of current events. Personally, it takes me from 30 minutes to 1 hour a day to read relevant news, view quotes and other information analysis. Despite the fact that I do not consider myself a trader, but I am engaged in medium-term investments. Active trading implies full employment only in this business. This is a profession.
Yield: Can be quite high. Prices for individual shares can change by 1000% per year. In general, for the Russian stock market, for example, the profitability can be estimated as follows: over the past 10 years from 2004 to 2014, the MICEX index ( average cost shares 50 Russian companies) increased by 2.5 times. Those. roughly speaking, growth was 25% per year from the original cost of the asset.
Income Predictability: No predictability. Tomorrow the directors of the company may be imprisoned and the shares will depreciate 10 times. The mine, for example, will collapse and the course will also fall rapidly.
Liquidity (the rate at which you can get money out of your asset): Relatively high. You can withdraw money from Russian sites the next day. If you trade on foreign sites, as a rule, two broker companies are involved there - Russian and foreign. Deposit/withdrawal of funds may take from several days to a week. In addition, if you urgently need money, there is a risk of losing a lot on the difference in the exchange rate, since there is a risk that it will not be the most profitable on the withdrawal date you need.
Risks: High. As general systemic risks ( economic situation in the country, etc.), and separately for a specific security (here, the risks associated directly with the issuer's enterprise).
starting amount: There are shares for 6.7 kopecks, for example, this is the current value of VTB shares. But the minimum lot for the sale of VTB shares is 10,000 shares. At the same time, a more significant limit on the amount is not even the cost of one share or lot, but commission expenses and the threshold amount for entering the market with the broker company through which trading will be carried out. As a rule, this is 30-50 tr. lower is also possible, but it does not make sense, since the commission will be too high compared to the turnover.
Additional costs: May be significant. These include - the broker's commission from each transaction, subscription fee for software (separately for a computer, separately for a tablet or phone), an increased commission for making transactions over the phone, etc. Professional players still have paid access to analytical sites, etc. But you can get by at least, for example, if you bring 100 tr to the exchange. and make 1-2 transactions per month minimum commission will be an average of about 2.5 tr. in year.
Diversification long-term investments, in cases where money is not needed by a certain date, but there is a task to make it work.
Often stock market becomes a haven for capital when there is nowhere to run. For example, in the current situation, the level of risk on ruble deposits has increased, you can switch to bonds (the risks are already comparable, but the yield on the latter is higher).
Getting speculative income during a crisis, when the market is falling and everything is cheap and most likely will rise in price later.
Separately, I want to remind you that from January 1, 2015 it will be possible to open the so-called individual investment accounts(IIS), for which it will be possible to issue a refund of personal income tax. Those. it turns out that the state is ready to pay 13% per annum just for the fact that you will keep money in an investment account. Thus, it does not matter for the investor which financial results he will receive, in any case, subject to all the conditions of the contract, a return of 13% per year is provided.
A bond is a security issued either by a company or government bodies(federal, local, regional). Unlike a stock, it has a fixed income - the cost of redemption at a certain time, or the cost of redemption. In addition, coupon income is paid on bonds - intermediate payments that the issuer pays to holders of securities. Bonds, like shares, are traded on the stock exchange, and you can also buy them through a broker company. However, they have a market value.
For example, the bonds of Russian Standard Bank at the beginning of 2009 cost 33% of their face value. Those. their market price has fallen sharply due to the banking crisis and high risks for all banks. Nevertheless, the bank resisted and fulfilled all its obligations under the bonds in full, and the owners of these bonds received a yield of 200%.
Difficulty / Activity: Not the easiest, but not the most difficult tool either. The biggest time costs are at the stage of issuer analysis and security selection. Then you can relax and hold until the end.
Yield: Medium. Strong fluctuations are possible only during periods of crisis. Therefore, now it is worth seriously considering this type of investment.
Income Predictability: 100%. You know the bond's purchase price, and the yield before the trade starts. After the transaction, of course, the price of the bond may fall and those who buy after you will earn more. But that's another question. The final profitability is clear immediately.
Risks: Average. The main risk is the risk of default by the issuer.
Other parameters: Liquidity, costs, starting amount - everything is the same as with shares.
Suitable investment objectives:
In stable times, a good alternative to deposits for temporary storage / accumulation of funds for a period of 1-5 years. In this case, the bonds will be used as a conservative asset.
In unstable times, you can get a fairly high and predictable profitability. In this case, the situation turns bonds into assets with an average or high level risk.
These are the products of banks and brokerage companies that combine elements of risk and predictability at the same time. For example, you invest 300,000 rubles for 1 year and a broker or bank ties your investment to a specific asset. If the value of this asset in a year exceeds the value at the date of the transaction, then you get an increased return on this asset. Otherwise, you get only your amount back or a minimum percentage of income. Kind of a lottery. Soon we will have a post about how it works and how the bank makes money here…
Difficulty / activity: Not difficult. The product is aimed at the "lazy". The selling party will give detailed advice on the choice of the underlying asset. Activity is also minimal. Invested and forgot, then nothing depends on you ...
Yield: We can say the average.
Income Predictability: Average. Although you will immediately know the minimum yield for 100%.
Liquidity (the rate at which you can get money out of your asset): High. Although there are some products that cannot be exited without losing part of the investment.
Risks: Medium. Since the risk is not reflected in the entire amount of investment, but only in profitability.
starting amount: High. As a rule, from 300,000 rubles.
Additional costs: As a rule, no.
Suitable investment objectives:
A good alternative to deposits and bonds for temporary storage / accumulation of funds for periods of 1-5 years.
Suitable for novice investors who want to take a little risk, but do not want to actively participate in the process.
Here you can without preface. The whole country is professionals))
Difficulty / activity: Average. Buying bucks, for example, is not difficult at all, doing it on time, and then getting out of them on time - this is difficult. I recently gave a great example on .
Yield: Medium. For 10 years from 2004 to 2014, the exchange rate increased from 28.8 to 56.2 rubles. (see chart) or 19.5% per year. However, the growth was mainly during the crises of 2008 and 2014. From 2004 to 2009, or 5 years in a row, the dollar fell. Almost unchanged from 2010 to 2013.
Those. the currency itself as an asset does not have growth potential. Therefore, the presence of currency in the investor's portfolio is designed to solve other goals, namely, protection from currency risks.
Income Predictability: Average. And although the fluctuations here are much smaller in amplitude than in the stock market, it is also difficult to guess the direction of movement.
Liquidity: High.
Risks: Medium. It’s hard to lose all the money here, but up to 10% in calm years and up to 50% during periods of turbulence is easy…
starting amount: Any, even 10 euro cents, lost in your pocket, is also a currency.)))
Additional costs: It's interesting here. Usually people do not pay attention to this, but the difference between the price of buying and selling currency in a bank is very high. Now, when the market is unstable, this difference reaches 20%. On December 16, on Black Tuesday, the difference (or spread) was 100%. This is the cost, because buying a currency from a bank with a difference of 20%, you immediately lose 20%, they still need to win back on growth. There is a way out: to buy currency on the stock exchange directly through a broker. Here the spread is minimal and the commission costs are small, but when working with amounts from 100,000 rubles, the commission is not noticeable. In our article, we examined this issue in more detail.
Suitable investment objectives:
Protection against currency risks. The principle of currency diversification.
In unstable times, the currency becomes an aggressive and investment asset, suitable for short-term earnings on speculation. At the same time, you should also not get carried away and put your eggs in one basket. It is necessary to remember about currency diversification and speculate only with a part of the funds.
Traditionally, real estate is considered the most attractive investment tool. However, there are many pitfalls. No one will deny that, for example, the ownership of an exclusive commercial area is a very attractive asset from all sides (profitable, reliable, even liquid, etc.). Only here on the total mass of real estate of such unique objects as needles in a haystack. Therefore, consider the characteristics of real estate on average.
Difficulty / activity: High. At the stage of choosing a property, there are a lot of pitfalls. Often there is a need to involve professionals - lawyers, intermediaries, appraisers, etc. At the stage of profitability management, this is practically a business with all the consequences.
Yield: Medium.
The profitability of real estate consists of 2 components:
Rent. As for residential real estate, we have an average yield of 4-5% per annum in the country. Commercial 7-10%.
An increase in the value of the property itself. The graph shows the dynamics of growth in the value of, for example, residential real estate on average in the Russian Federation for 10 recent years: from 20.8 tr. up to 52.3 tr. (2.5 times over 10 years or 25% of the original cost per year).
Income Predictability: Average. As for rental income, it is clearer here, there are average market rates. The task is to hand over the object at the appropriate rate. As for the growth in the value of an asset, sharp fluctuations are rare here, so you can also lay an average% growth.
Liquidity: Low. If you sell quickly, there will be a high discount, and at the price you want, you can sell for a long time.
Risks: Average. Legal risks. Commercial risks.
Additional costs: High. Both the costs associated with the choice of an object and its design, and the costs of maintaining an object
Suitable investment objectives:
Long-term investment for the purpose of obtaining passive income already now or in the future.
Investment investments for the purpose of subsequent resale and earnings due to price growth.
Gold, along with currency and real estate, is one of the most popular and attractive investment objects in our country. However, gold, despite its brilliance and beauty, has a number of drawbacks! Let's consider everything in order.
Difficulty / activity: High, at the level of work with shares.
Yield: High. Over the past 10 years, the value of gold in dollars has changed 2.9 times (see chart). At the same time, in rubles, it increased from 171 rubles. up to 2168 rubles. - 12.6 times. (+126% to the original cost every year). However, as can be seen from the graph, in the last 2 years there has been a trend towards a decrease in the cost of gold in dollars.
Income Predictability: It's the same with stocks.
Liquidity (the rate at which you can get money out of your asset): When it comes to metal bills - high. As for ingots, it's more complicated. The quality of the metal is also evaluated there and is not accepted everywhere. Therefore, let's write liquidity as average.
Risks: High. In addition, metal accounts are not included in the deposit insurance system. Therefore, in addition to the risk associated with fluctuations in the value of gold, there is an institutional risk associated with an intermediary bank.
starting amount: If we are talking about metal accounts, then how with deposits from 1000 rubles.
Additional costs: High. Firstly, when opening metal accounts for precious metals, there are traditionally very high spreads (the difference between buying and selling), about 20% at present. Secondly, when buying metal bullion, you must pay VAT (value added tax) - 18%
Suitable investment objectives (for beginner investors):
Protecting funds from shock shocks in the economy.
An excellent asset for portfolio diversification, as it has a different dynamics from the exchange rate national currency and the stock market.
So, to summarize: we have considered 7 basic investment assets. As a result, we get such an investor's chessboard. It will help answer questions about how it is profitable to invest money, and which assets are better or worse in terms of certain characteristics.
In addition to the investment instruments indicated in the table, there are, of course, futures, mutual funds, ETFs, hedge funds, endowment insurance and other scary words. financial instruments tens of thousands and constantly inventing something new. But we have covered all the basic things. All the rest can be attributed with a slight stretch to one or another segment.
In the article we tell how to use the investor's chessboard in practice.
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Good luck with your investment!
The practice of illegal withdrawal by management and business beneficiaries of company assets to foreign jurisdictions has become widespread. Resourceful debtors actively use offshore companies, trusts, fictitious accounts payable, transfers of assets to formally unaffiliated persons and similar tools. As a result, creditors inevitably face the challenge of gaining access to the foreign assets of such debtors. The whole process is very reminiscent of the story of Achilles and the tortoise: somehow the debtor is always one step ahead. What should Achilles do in this situation? The recipe is simple - systematic work ahead of the curve.
First, start collecting information and evidence, as well as tracking the debtor's assets. At this stage, it is important to identify the key jurisdictions for the search for assets, narrowing down the scope of subsequent work (Russian businessmen usually prefer the UK, Monaco, France, Switzerland and the USA). You can establish the circle of such jurisdictions by communicating with business partners, colleagues, opponents of the debtor, having studied his foreign trips, social networks, his family's place of residence, hobbies and hobbies, and so on.
Within the established jurisdictions, they proceed directly to the search for assets: bank accounts, shares in companies, valuable papers, intellectual property rights, art, houses and land plots, sea, river and aircraft, other objects real estate, cars. Such objects are searched in the registers of legal entities, movable and immovable property, judicial acts, financial statements, in cadastral maps. A special role should be assigned to interaction with government agencies and media reports.
For this, a team of lawyers and detectives is involved: their task is to unravel the asset withdrawal schemes. They have access to and skills in working with sources of information in different jurisdictions, can work in a multi-jurisdictional field, and evaluate legal perspectives foreclosure on found assets. If there are such prospects, you can proceed to the next stage - the seizure of assets, litigation in a foreign court on foreclosure, execution of judicial acts and return of assets. In this case, various advanced procedural tools of foreign law enforcement agencies help a lot. So, in the UK, injunctions can be requested from the court - the seizure of assets, imposing on the debtor and third parties the obligation to disclose information, the prohibition of the execution of judicial acts and the initiation of litigation in relation to the subject of the dispute, if the parties have agreed on the exclusivity of English jurisdiction. In the United States, in the event of the debtor's bankruptcy, the arbitration manager has the right to apply to the court for recognition of the Russian bankruptcy case as the main foreign proceeding. This will entail a ban on creditors from foreclosing the debtor's assets in the United States, bypassing the Russian bankruptcy estate.
