Productive Assets

People don’t have to be productive assets. But most people live hand-to-mouth. If asked what your biggest assets are, and you own them, you may be tempted to say your house, your car, or your stuff. Those (with exceptions) are not productive assets. A productive asset generates cash for reinvestment or other uses. For most people, *they* are their biggest productive asset. Which is what makes disability insurance so important. Not being able to work can cut off people’s ability to survive. Life is about more than survival. It is why we often spend more on our houses, cars, and stuff than we need to… even though it isn’t a good “investment decision”. If your Engine is strong, you can afford to do that. Life isn’t an investment decision. We don’t have to be the Engine. If we invest in productive assets, gradually we can build Capital. An Engine that is independent of us. Then use that Engine as a muse in whatever way we choose. Without having to filter our activity through the question “how can this make money?”.

Finding the Power