When dealing with financial security, owning assets becomes the first priority as it is now more important than ever. With the economic fluctuation the country faces, it is vital that you have something valuable that you can call your own.
Below we will explore the importance of owning assets and how they will help you secure your future.
The Journal of Personality and Social Psychology reveals that owning assets can provide a sense of stability. You must be asking yourself, “How?” They can act as a safety net in case of emergency, for example, if you lose your job, they can carry you through those rough times as your source of income. Another example would be having a rental property where you will collect rent from your tenants to cover your expenses.
Assets can also help you build your lifetime wealth over time. You can make smart investments and let your money work for you. According to the Security and Exchange Commission (SEC), you can consider the power of compound interest. This is when the interest you earn on an investment starts earning its own interest – this can make your money grow. For example, if you invest R1000 and get 5% interest after 1 year, you will have R1050, yet, in 10 years, it will be R1628, and after 30 years you will have R3830.
As a parent, you would want to secure a future for your children. Assets can be passed down to the next generation, which can help with the creation of generational worth. Owning assets can also make you feel in control of your financial future, giving you a sense of relief.
Everyone should start building their asset portfolio now, even if you do not earn a lot of money, you can always start small and grow. That can make a very big difference in the long run.
