Want to Build Wealth for Yourself and Your Family? Make Sure You Own Assets in These Categories
•By Mahersaham Team
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Before we go further in this article, what exactly is an asset? You always hear financial gurus on social media using this word, but you may not fully understand what it really means. Let us explain.
An asset is anything that adds value to a person or company. It can generate income, provide long-term benefits, or be resold at a certain value. Examples include: property, shares, machinery, savings accounts, and patents. In other words, assets bring money in.
A liability is any obligation or debt that needs to be paid. It takes money out of your pocket. The simplest examples — car loans, credit cards, mortgages, or monthly rent.
An easy way to understand the difference:
| Aspect | Asset | Liability |
|---|---|---|
| Effect on cash flow | Money comes in / adds value | Money goes out / reduces value |
| Individual examples | Rental property, shares, savings | Loan repayments, monthly bills |
| Company examples | Factories, machinery, inventory | Bank loans, accounts payable |
| Long-term impact | Strengthens finances | Weakens finances if not managed |
Assets are what work for you. Liabilities are what make you work for them. The goal of wise financial management is to accumulate more assets than liabilities — so that money is always flowing in, not out.
The key difference between wealthy individuals and the average person is not luck or inheritance alone — but how they understand the types of assets that can build wealth, compared to those that merely drain cash.
Assets that truly build wealth typically have four main characteristics:
1. Their value increases over time,
2. They generate regular income (cash generating),
3. They have the potential to grow through compounding (money making money), and
4. They provide protection against inflation (rising prices of goods)
On the other hand, consumer goods like luxury cars and the latest smartphones may look impressive momentarily in the eyes of society, but in reality they are assets that depreciate rapidly and do not generate any returns. This is not investment — this is spending. Wealthy people use their capital to buy assets that work for them, not burden them.
Business sits at the top rung because it offers unlimited growth potential. When you own a successful business, profits can be reinvested to expand operations, create new revenue sources, and build a high-value empire.
Most of the world''s wealthiest individuals built their wealth through business ownership — whether through companies they founded themselves, listed on the stock market (IPO), and remained as major shareholders.
You do not necessarily need to start from scratch. You can buy an already profitable business, join a company as a partner, or take up a franchise licence with a proven business model. However, these great rewards come with high risks — business requires time, energy, and strong management skills.
Real estate comes in second place because it provides two simultaneous benefits — appreciating value and cash flow from rental income. Additionally, it is a natural hedge against inflation.
Many millionaires and billionaires built the foundation of their wealth through property. Unlike business, this investment is easier for ordinary individuals to manage — whether buying a house to rent out, or investing through REITs (Real Estate Investment Trusts) for those who prefer not to manage property directly.
However, the drawback is low liquidity (difficult to sell quickly like shares) and maintenance costs. Its value also depends on the local economic location.
Stocks come in third place because they combine long-term reliability and ease of access. The global stock market has proven its ability to create wealth over several decades despite short-term volatility.
The main strength of stocks is the compounding effect — small, consistent investments can grow substantially if dividends are reinvested and shares are held for the long term.
Investors do not need large capital or extraordinary skills. With index fund investing, one can invest in hundreds of companies simultaneously at low cost.
The main challenge is emotions — many investors fail because they panic when the market falls or become too greedy when it rises. In stocks, patience and consistency are more important than analytical brilliance.
At Mahersaham, we provide a comprehensive learning module package that covers stock investing in Malaysia and the United States. Stocks are one of the cash generating assets through dividend payments and capital appreciation.
Investors will be trained with various techniques and skills to build wealth in stocks through capital appreciation and dividend income. We train you to build a portfolio of quality dividend stocks. If you are ready to start building wealth in stocks, you can subscribe to our package below.
Human capital comes in fourth place because it does not directly create wealth, but it enables you to invest in other assets. Your income derived from the knowledge and skills you possess is the primary source for purchasing stocks, property, or starting a business.
High-value skills — such as technology, coding, copywriting, finance, healthcare, or entrepreneurship — can dramatically boost your lifetime earning potential. Building a strong professional network also opens up new investment and collaboration opportunities.
However, its limitation is human time and energy — you cannot multiply yourself without limit. So, use the income from your skills to invest in assets that can grow on their own.
Crypto comes in fifth place because of its extraordinary return potential but also accompanied by extreme price volatility and market uncertainty. It is true that Bitcoin has created many millionaires over the past 16 years, but its value can change drastically within a single day.
Prices often do not align with actual value or usage levels, and government policies can affect the market rapidly. For investors who understand the risks, crypto can be a small portion of a portfolio, but it is not suitable as the main pillar of wealth.
Knowing what assets do not build wealth is equally important. Cars, smartphones, luxury goods — they all depreciate and do not generate income. They only satisfy short-term desires and do not add long-term value.
The difference is simple: A real asset puts money into your pocket. A fake asset takes money out of your pocket.
Wealthy people typically buy assets that appreciate in value first, then use the income from those assets to enjoy a luxurious lifestyle — not the other way around.
Start with what is easiest: investing in knowledge and personal skills. It yields immediate results and opens doors to other investments. Then, begin investing consistently in index funds or stocks. You do not need large capital — what matters is discipline and time.
Do not chase the best time to buy; instead, focus on frequency and consistency of investing. From there, you can transition to property or business as your capital and experience grow.
And if you are serious, seek professional financial advice before making major decisions. The cost is small compared to mistakes that could devastate your finances.
True wealth comes from understanding the difference between assets that appreciate in value and generate income, versus those that depreciate and consume resources. Business, real estate, and stocks have long been proven as assets that fulfil three main criteria — value appreciation, regular returns, and growth potential.
Your first step begins with building your earning potential, then redirecting a portion of that capital into assets that truly create long-term wealth.
Building wealth is not about buying luxury cars first — that is a burden, not an asset. Cash cow assets are things that add value, generate money, and grow on their own.
If you want something practical, not just theory — this is what the Mahersaham Gold Package offers:
So, if you are serious about owning assets that truly build wealth — not just dreams — the Mahersaham Gold Package is your gateway to the world of real assets: stocks + human capital + proven strategies.
An asset is something that adds value and generates income such as rental property, shares, and savings. A liability is an obligation that takes money out such as car loans and credit cards.
Examples of wealth-building assets include property that generates rental income, shares that provide consistent dividends, and businesses that grow. These assets share the characteristics of value appreciation, regular returns, and growth potential.
The first step is to build your earning potential through knowledge and skills. Then redirect a portion of your capital into valuable assets like shares or property consistently.
A luxury car depreciates in value from day one and requires high maintenance costs. It takes money out of your pocket, making it a liability rather than a wealth-building asset.
Building wealth starts with understanding the difference between assets and liabilities. Take the first step today.
Open a CDS account through Register CDS Account Mplus to start investing in stocks.
New to stocks? Download the free Stock Basics Ebook to understand the fundamentals of investing.
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