Other scenarios

Real estate

Assume that you buy a piece of land worth 1 million and it appreciates to 1.2 million after one year. You can sell the land at 1.2 million to recover your initial investment of 1 million.

You can then reinvest the 200,000 by buying another piece of land. This is a free asset. You can then invest your 1 million in another investment project.

This can be replicated in all forms of assets. It is an investment strategy that makes the many rich.

If you keep accumulating these free assets, your net worth will skyrocket. This is how one million becomes one billion over time.

Conclusion

Understanding assets is an important step in wealth creation. Understanding how to get a free asset is also a crucial step in the right direction.

In all you do, you have to keep accumulating income-generating assets.