Wealth doesn’t come from your bank
Posted on August 1, 2009 by Colin Wong Areinz (Waitakere Real Estate Mreinz REAA 2008)
The only two ways to build wealth are through business activity and property. Fixed interest bonds and bank deposits simply maintain your wealth as they keep its value in line with or slightly above inflation.
Business activity, be it your own business or through buying shares in other businesses, provide both income (dividends) and capital growth over time. Property does the same, in the form of rental income and increased values. While fixed interest gives you an income in the form of interest, in the end you just get your original money back.
Filed under: REAL ESTATE