3. Understand where real wealth comes from
An individual who is considered wealthy… is someone who has accumulated substantial wealth relative to others in their society or reference group. In economics, net worth refers to the value of assets owned minus the value of liabilities owed at a point in time. – Wikipedia
Real wealth comes from assets. An asset is money, anything that can be converted into money, or anything used to produce money (not currency – money).
There are two types of assets as far as building Black wealth is concerned: physical assets and paper assets.
Physical assets include:
- Fertile and productive Land
Paper assets includes:
- Stocks, bonds, mutual funds
- Money others owe to you
We must collectively change what we imagine when we think about building Black wealth. Wealth is not BMWs, Louboutins, and Pateks. Wealth is having your money produce income that allows you to make more money.
The ultimate asset is, was, and likely always will be land. Land is the root of all wealth: no land means no food, no metals for machinery, and no timber for homes.
But all land is not created equally. Land can only be considered an asset if it is useful. That means your land must be connected to infrastructure and is located somewhere that others would want to live, and/or your land can grow food, sustain livestock, or is rich with resources that can be mined.
The New Blueprint For Building Black Wealth: Own fertile, desirable, and/or resource rich land.
The closer you are to the land the wealthier you become.
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