World Business Expo

Productive assets
Another example of financial innovation is to have as many assets consumptive than productive assets. Have you seen the merchant who lived in a Shop house, where the bottom floor is used for trade, while the upper floors used as a residence?

That is, a place of business and residential into one. In other words, the merchant houses are not just houses, but has become a productive asset that can generate money, aka the place to do business. What about you? Perhaps you have the house for more than one. And you do not live in the house every month instead drain your pockets because it must pay the cost of electricity and other maintenance costs. In fact, housing conditions continued to decline due to aging and so forth. Concretely, some houses you have not only not productive, but instead become a burden. Therefore, the house must underproduction, in the sense of providing an income, such as leased to another party.

In addition to the house, try to see again those resources you have. Pay attention to whether the asset is an asset just as consumptive, or a mere tool to maintain prestige, or is quite productive. If you have gold jewelry whose value increases, the jewels belonging to the productive assets that can increase your wealth. So also with paintings whose value could be increased. In summary, productive assets are assets that have investment value.

Financial innovation can also be done by way of selection of appropriate investment. Understanding the right investment here is how to send your money “work” for you. So, money making money. How do I? Do the active investment.

Investment is active on a regular basis to select and evaluate investments that have been done. In capital markets, for example, some people buy stock, then keep holding it in a long time, with the hope of obtaining dividends and capital gains. It’s not wrong. However, in this period, could have held the stock price decline in price. Among those who hold these shares may not care or even sell it for fear that stock prices will further decline.