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Is cash an asset?

Assets go up in value over the long term, they may go down in the short term but overall an asset will rise in value but cash is always falling in value.

Money falls in value because of inflation. It is not that prices are going up as such; it’s more that money is worthless each year. This is why it makes sense to convert cash to assets as quickly as you can.

For me, assets include knowledge, relationships and things like property and shares in businesses. Be careful not to have too much cash available because it is human nature to consume. If you have cash easily available your mind will play games getting you to buy things you don’t need. Instead of paying other people who make money from your purchases pay yourself first by investing in an asset.

As a business owner there is lots to learn in the area of pricing, marketing, selling, management, leadership all of which can repay your investment many times over. Read books, go to seminars and work with others which is why I am developing the OnTrack Business Development Programme.