A Grand Estate Is Built With Assets

Almost everyone wants to be a millionaire, but few would want a million dollars is assets over strait, liquid cash. Consequently, everyone tries to build up there financial estates by the primitive means of the savings account, thinking that all they want is x amount of dollars with which to live upon in old age. To achieve this goal most would get a degree from a highly credible collage and find a job that supplies for there current needs plus a little extra to build their nest egg. They then plan to eat of their nest egg over the rest of their life span, perhaps leaving a little extra yoke for their posterity. Perhaps they own an acer of land, a paid-off car, and a paid-off house, but this is the entirety of their financial plans. When a majority of a population comes to accept this as the ultimate success formula, nations crumble.

What the "modern man" dose not grasp, is that $1Million in cash is not more valuable than $100K in cash and $900K in assets. While cash sits in a vault collecting dust and a pitiful 0.06% interest rate; assets, like a Swiss Army knife, retain that same store of value, and do many, many other valuable things. Assets appreciate, becoming more valuable. Assets in the form of inventory can churn a handsome profit. Assets, such as real-estate can produce rents for the owner, assets in the form of stocks can be kept for the dividend or flipped at a profit. Assets in the form of land, can be farmed, or developed, or used for natural resources, or kept for personal use. Land is especially useful because in the event of disaster, land 

will keep you from starving to death. 

To illustrate, think of two men who work the same job at the same hours and at the same rate. While one eats his paycheck, saving some to eat latter, the other also eats his paycheck, but rolls the excess into assets. several years pass and the two men are still hard at the grind stone, living the at the same standard of life; one has a savings account which is growing well, but only at the rate at which it is grown. The other, while he has some savings, also has shares in various companies which result in annual dividends, the dividends he uses to buy more assets. Eventually the second man is able to buy a plethora of diverse assets, exponentially growing his estate, whereas the first man has the exact sum of what he's saved plus 0.06%. Eventually, at age 65, the first man is able to retire comfortably, but the second can't because he has to work part time to manage all his wealth. When both men go the way of all the earth, there legacies live on. While both men raised happy families, and bought their children up well, the first man leaves his children what little left he had, while the second leaves his children a financial empire full of assets. A grand estate is built with assets.