August 17, 2013
Depreciating assets shrink your wealth. Appreciating assets increase your wealth. Examples?
Depreciating assets shrink your wealth. Appreciating assets increase your wealth. Examples?
Vehicles, clothing, electronics, furniture, home improvements, home maintenance, meals, and vacations are some examples of depreciating assets. Real estate (including your home), a business, and a college education are some examples of appreciating assets.
Well said, Katherine. Here are a few more appreciating assets. Stocks, bonds, and YOU. Yes, you are an appreciating asset when you further your education (academic and financial), which will inevitably increase your wealthy creation abilities over the coming decades. Here is the key point: Focus your efforts on accumulating appreciating assets while limiting your depreciating assets. Gradually over time your net worth will go up and up and up!
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