How to Make Thy Assets Multiply

My main financial goal is to multiply income-producing assets.

Many years ago, Robert Kiyosaki taught us the best definition of an asset. “An asset is something that puts money in your pocket… an asset pays you for owning it.”

To increase your monthly cashflow, you must increase your ownership of income producing assets.

The easiest and fastest way to do this it to turn one asset into two, three, four, or more assets.

  • Apartment buildings buying apartment buildings
  • Homes buying homes
  • Land buying land
  • Stocks buying stocks
  • Businesses buying businesses.
  • Customers buying customers.
  • Clients buying clients.

If I were to ever get a tattoo, it would be:

Multiply Assets

Why? Two Reasons:

  1. This financial goal makes the passage of time profitable. As each month passes, you end up owning more income-producing assets.
  2. This plan is guaranteed to work over the long term IF you don’t go crazy with debt.

If you’re serious about improving your financial situation, you’ll make this your main goal.

Consider this from the book A Wealth Option, a Guide for Generating Extraordinary Monthly Income with Covered Calls and LEAPS  by Joseph Hooper and Zaron Zalewsi:

“One can think of the accumulation of a stock portfolio (portfolio of income-producing assets) through time as the cultivation of a forest full of trees. Traditional Street mentality encourages investors to plant trees throughout their working lives and rely on appreciating markets to grow their forest over the long term.

Once our working lives are finished and active income ceases, the Street then encourages investors to begin cutting down the forest to provide income in retirement.

The hope is that the forest has grown large enough over time to withstand the depletion in retirement. In our experience, this level of growth is a rarity for the average American.

What the Street has overlooked is that simple and very conservative cultivation can transform the forest into an orchard of fruit-bearing trees. Fruit-bearing trees generate cash income on a monthly basis. For investors who want to grow their assets, rather than eating the
fruit each month, the fruit can be left to fall on fertile soils to grow more trees and thus to compound the growth of the forest through time. For investors who are in retirement, the fruit can be picked each month as cash income for living expenses – without liquidating stocks in the portfolio and destroying the forest that they depend on to live.”

One fruit-bearing tree becomes two fruit-bearing trees. Two fruit-bearing trees become…

Here’s how this looks in action:

Multiplied assets in action

If we stop and think about this, we’ll see that the average person actually does the exact opposite of this by multiplying liabilities. A liability is anything that takes money out of your pocket.

They multiply clothes, shoes, watches, cars, toys, status symbols, electronics, streaming services, and more.

To prove this is actually the case, consider how many storage rental units there are these days. We’ve become very, very good at multiplying liabilities!

Truth be told, our main financial goal of multiplying assets is incredibly fun. Thinking of ways to structure things so your assets are buying more assets for your family is a puzzle you get to solve.

Your mission, if you choose to accept it, is to engineer your forest of fruit-bearing trees to drop more fruit at a faster pace!

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