Jaspreet Singh, CEO of Briefs Media and host of “The Minority Mindset Show,” recently said in a July 2024 YouTube video that people who want to be rich should own three different types of assets.
These, Singh argued, are beneficial for financial success and include hard assets, paper assets and protective assets.
And “number three and a half,” speculative assets, he added.
This is something he has reiterated numerous times, including in a March 2022 YouTube video, in which he said:
“If you really never want to have to worry about money again, you need three different kinds of investments. You need an investment that’s going to pay you in income. You need an investment that’s going to give you growth of your wealth. And then you need an investment that’s going to protect your money.”
In the July video, “98% of Rich People Own These 3 Assets (You Should Too),” published to his Minority Mindset YouTube Channel, Singh described what he means and discussed the three (and a half) types of assets that can help build wealth.
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Hard Assets
These, he said, “are something you can see, feel and touch and give you income.”
One of the most popular — and beneficial — ways to go about acquiring hard assets is to invest in rental real estate, according to Singh.
“When I invest in real estate, I am looking for cash flow — that means I want to buy a property, rent it out and have cash flow — positive cash flow, a profit, every single month,” he said.
This monthly passive income, he said, helps him predict how much money he can generate, and grow that wealth by acquiring additional properties.
Another reason wealthy people like to invest in real estate is for the tax breaks, he added.
Paper Assets
This means investing in the stock market, “where you get a certificate saying you own a piece of ownership in something like McDonald’s, but you don’t actually own the franchise,” he said.
And for individuals who are not interested in investing in — or researching — specific companies, Singh recommends investing in exchange-traded funds (ETFs).
“You can just invest in funds that give you exposure to the total stock market,” he said.
Protective Assets
These assets can include gold, “as a protection against doomsday,” he said.
Gold, which is known as a hedge against inflation, is “protective” according to Singh, as it enables you to save money and doesn’t produce any value.
“I don’t consider it an investment,” he said. “For me, I don’t really care what’s happening with the price of gold — I buy a little bit of gold every single month, and it just sits there as a way for me to save hard money.”
Speculative Assets
These assets can entail investing in a startup or investing in cryptocurrencies, he said, noting that “not every wealthy person needs these speculative assets.” You should start by focusing on the first three to build wealth.
“You don’t want to worry about your speculative investments until you’ve built the foundation with your stable investments,” he said.
While these are “a little bit more fun,” they are also “a lot more risky,” he warned.
“[They] can make you a lot of money but can also lose all of your money just as fast,” added Singh.
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This article originally appeared on GOBankingRates.com: Jaspreet Singh Says Rich People Own These 3 Assets — Here’s Why You Should, Too
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