October 7, 2014

Appreciating assets vs. Depreciating assets? Examples? What should you own more of and what should you own less of? Why?

2 thoughts on “October 7, 2014”

  1. Garrett Haag says:

    Appreciating assets are assets that grow over time while depreciating assets go down in value over time. Most things and stuff are depreciating assets, such as clothing, cars, electronics, or pretty much anything you buy in the store. An appreciating asset would be stocks, bonds, a good house. You want to avoid owning depreciating assets and try to own as many good appreciating assets as you can. You want your money to grow over time and not shrink. Owning appreciating assets are how you become wealthier. Depreciation assets shrink your net worth while appreciating ones make it grow, so own appreciating assets and only buy the depreciating assets you really need and dont just wont.

  2. Mike Finley says:

    Nice work on the answer, Garrett. Let’s review.

    Focus your efforts on owning appreciating assets (stocks, bonds, and Real estate) that provide income (dividends and/or rent), while doing it at the lowest possible cost (no-load index mutual funds).

    Reduce owning depreciating assets (most stuff) that lose value immediately and continue to lose value over time as you own them.

    Follow these simple guidelines and your net worth will go up over time (as you pay down and eliminate debt). Financial freedom will follow!

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