I’ve covered the fundamentals of asset creation in several places, including my best-selling The Music Entrepreneur Code.
And the main thing you need to understand is what constitutes an asset.
Homes, cars, boats, things that either decrease in value over time, or require a massive upfront cost and ongoing maintenance fees are generally not assets.
People say you can make bank on real estate investments, and that may well be true, but I have only ever seen people pay off their debts after selling their home – never coming out ahead in any other way (not to diminish paying off one’s debts).
Still, property is one type of asset I’ll be talking about here, so you can’t completely write it off.
There are only three types of assets, though, so in addition to identifying them here, I will also share a little bit about my asset portfolio.
1. Businesses
Obviously, there are times when businesses are anything but an asset. Investopedia says roughly 20% of new businesses fail during the first two years of being open, 45% during the first five years, and 65% during the first 10 years.
I would posit, though, that your odds of success in music aren’t a whole lot better. So, don’t get caught up in the numbers.
Personally, I would consider Music Entrepreneur HQ a saleable asset. It has a certain amount of traffic, a bit of a social media following, and an email list. And, if someone else wanted to run it, they certainly could. There isn’t any major cred tied to the name David Andrew Wiebe, and I’m not so embedded in the business that someone couldn’t rebrand.
I have some other promising ventures in the works that could certainly develop into assets as well.
2. Investments
I have a couple of whole life insurance policies that act as my Infinite Banking Concept. And while these aren’t strictly investment vehicles, they have certain advantages over conventional bank accounts that make them quite attractive.
I also have some minor investments in cryptocurrency, but knowing that it’s speculative, I have not put large amounts of money into it.
3. Property
With billionaires buying up land, property ownership is fast becoming rarer by the day.
But intellectual property is also a form of property, and this is where, in a way, creatives have got it made.
Personally, I’ve got six books, 30 musical works, as well as courses, eBooks, and various other forms of intellectual property that continues to produce an income. And I’m far from finished.
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