Seth hits on something really important for enterprising young men and women and for those building investment portfolios – why not seek the type of assets that continue to pay?
Do work and get paid once. Build an asset and get paid for as long as it lasts.
A retailer or a restaurant owner might work 18 hours a day–but the landlord makes just as much money from that effort, often more. The cheeseburger gets paid for once, but the rent bill comes every month.
Real estate is an obvious and simple form of asset. In 1928, my great grandfather traded his real estate assets for the sure thing of the stock market. The biggest difference between the rental houses he owned and the worthless stocks he bought was that the houses paid rent every month, while the stocks offered merely the promise of a later payoff.
(editor’s note: grandpa should’ve bought an index in 1928 and dollar-cost averaged for a few years)
Anyway, he goes on to discuss the types of “assets” that you can actually build for yourself, don’t miss this: