What is your most valuable asset?

By: ispeculatornew
Date posted: 08.11.2010 (4:18 am) | Write a Comment  (7 Comments)

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You have probably been asked this typical questions a few times in your life. “If you were stranded on a desert island and could only bring one item, what would it be?“. There is no good or bad answer to that question of course but it’s always interesting to think about it. I decided to bring back this question to our finances because that is what this blog is about, isn’t it?

So now for my question. What is your most valuable asset? And I’m obviously not talking about your life in general but rather the assets that contribute to your financial objectives and that help you succeed in whatever are your financial motivations. There are obviously many different possible answers but I decided to list those that I could imagine, let me know if you can think of any others that are helping you become “rich”.

Tangible Assets:

House – For entrepreneurs and others, a house can be what makes it possible for you to work, relax, do your meetings, phone calls, etc.

Car – Some would probably answer that their car is what makes it all possible. Anytime you work on the road or you need your car to actually do your job (road salesmen, pizza delivery, etc)

Money and investments – If this is your most valuable asset, then you have probably succeeded to some level because there is no doubt that once you reach a certain level, money starts working for you and can become passive income by itself. The whole objective of the game is reaching that point and it’s not easy. But if you are putting more money at work every month, there is no doubt to me that you will eventually reach this point.

Intangible assets

“School Education”: Have you studied administation, finance, commerce or are you an engineer, doctor or pharmacist? Chances are that what you learned in school is a major part of the reason why you got your actual job or why you were able to start that business. My parents often told me that the #1 gift they would leave me would be my education. It’s difficult to argue that fact. The difference in income between those who graduated with a masters and those who failed to finish high school is incredible.

“Parents Education”: It’s not by luck that “Rich Dad, Poor Dad” was such a big hit. How our parents show us and how they manage their own finances are a big part of the reason why some end up going bankrupt. When you learn at a very young age the importance of saving, the power of compounding and about investing in a business or in the stock market, your odds of being financially successful jump very high. In the same regards, having parents going bankrupt or living paycheck by paycheck can either add extra motivation to avoid that situation or encourage you to copy that lifestlyle. Either way, it has a big impact. And I have to say, my wife thinks this is the most important.

“Street knowledge”: Thanks to the internet, gaining knowledge on our own has became much more accessible. Learning about different types of investments, businesses, saving methods, learning to negotiate or to improve a certain skill that will help you in your current or future job, etc. There is also all of the experience that you get when performing as an employee, an investor or an entrepreneur. Over time, we all get better at it because we learn.

Family and friends : In the same way that your family has a strong impact on your finances and your discipline, friends and family allso provide major incentives. They say that we tend to live in a similar way to those around us. Hanging out with extremely motivated friends that are business savy can certainly have a major impact.

Network : The final factor I would state is your network. Many MBA students consider the best thing to come out of their MBA is not what they learned but the network that they were able to build. Over time, when you put effort into it, a network of co-workers (past & present), but also people you met in other companies and even other environments can prove to be very valuable. Getting a big job or the opportunity that you are looking for is usually mostly about who you know rather than what you know. You do need to be competent enough but once that is out of the way, it becomes about connecting and being a good fit for that particular opportunity.

Back to me…

Personally, I would say that both knowledge from school and “street knowledge” are my two most valuable assets. I know, I was supposed to pick just one but they both still have an incredible impact and honestly I would be considerably less further along if I had only one of the two. My “School Knowledge” was essential to getting the day job I have and also helped in setting up and growing my business. On the other hand, if i only had what I learned in school, I would probably not have a business to my name to go along with this great job.

And how about you, what is your most valuable asset (financially speaking) and why?

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7 Comments

  1. Comment by OneDay — August 11, 2010 @ 7:12 am

    I don’t have a car, I don’t have a house, I only have my money and investment.

    Can we say that my most valuable intangible asset is myself 😉

    Good post!

  2. Comment by The Financial Blogger — August 11, 2010 @ 11:40 am

    I would be tempted to answer that it’s my RX-8 😉 lol!

    More seriously, my biggest asset is the “fire” lying within myself. Having this fire bumps my motivation, boost my creativity and increase the level of energy I put in all my projects.

    Being passionate about something is a determinant factor in both my personal and financial success so far.

    great post!

  3. Comment by Zavi — August 11, 2010 @ 12:07 pm

    Coool! My intangible asset is my street knowledge. I guess that my travels can be included in that category. With all my travels, I have learned to adapt quickly, to share, to be open to new experiences, to understand better world issues, etc.

  4. Comment by IS — August 11, 2010 @ 7:23 pm

    @OneDay – How are you your most valuable asset, I mean what specifically?:)

    @TFB – LOL… yep, would agree 100% on that, your fire could lead you to the moon….

    @Zavi – Very true yes, should have written about travel, it makes a world of difference, I agree

  5. Pingback by Financial Ramblings — August 13, 2010 @ 8:22 am

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  6. Comment by Smart Payment Plan — August 13, 2010 @ 3:20 pm

    Good posting. I would say my investments are my most valuable asset. Intangible asset would be my street knowledge. I think common sense is much more important in many cases than having a good network or frugal parents. We all pick our own paths 🙂

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