American Households & Financial Assets

According to one study, Most of the American Households has Zero financial assets such as stocks and Bonds. How long the average American household can survive without a monthly pay check from the employer?…. Well, according to this study Maximum 1 or 2 months….!!!!

Yes, This is true. This shows that, still today people in developed countries spend (Invest) less behind the Assets and more behind the consumer lifestyle expenses. If something is available at shopping mall at discount than people will rush to buy that item but if stocks are trading at discounted rates on the stock exchange, people will run away.

Even though, people know that, consumer goods and luxurious items (Expensive Cars, Watches..etc) are highly depreciating items, people will still but it but people will not buy Assets (Stocks, Bonds, Gold, Real Estate, Businesses) even though they appreciate in its value over the time.

This is the situation everywhere in the world. In developing countries like India also the situation is also the same. People will rush to buy the stocks when the stock market is at its all time high level and stocks are trading at over stretched prices. And the same people will run away when the stock market is down and stocks of lucrative businesses are trading at discounted prices.

Typically Rich & Wealthy people are those who have accumulated more Financial Assets (Stocks & Bonds) in their lives and not the ones who have spend more behind to maintain their luxurious life style.

So if you want to be wealthy, than you should seriously start acquiring Assets. An Asset can be anything that can appreciate in its price (& of course Value) over the time such as stocks, bonds, gold, Real estate, Web properties or any other assets. So Start acquiring assets and become wealthy over the time….

Of course…. You won’t look cool at starting but once you will have Wealth, You don’t need to look cool & Rich….!!!!