Lesson 6: Money As An Asset
One of the categories of Asset we outlined in Lesson 1 is Capital. In it’s most liquid form that’s Money.
In this lesson you’re going to start considering how you can make your money work for you. Effectively by building an Asset Base, that’s what you’re doing, making your money work for you by creating assets that bring you more money.
Exercise 6: The Money Game (Optional Exercise)
For this exercise, take a round sum of money in your local currency – e.g. £100 or $100, or 1000, or 10,000 – the amount is up to you and write it off. If you can only afford to do that with £10 or $10, then fair enough, start with that.
This money is your seed capital for this exercise.
You are writing it off, because if you lose all of the money, you have to be comfortable with that – this allows you to take more risks than you would otherwise.
Once you have removed all ‘guilt’ from allocating the money in this way, you are free to invest it in ANY WAY YOU WANT WHATSOEVER.
You are free to experiment.
You are free to explore different opportunities – which expands your knowledge and expands your potential to make more money.
Here is how this exercise was introduced with my first students on this course:
Discussion 6: The £100 Money Game[audio: http://126.96.36.199/~lifesto5/wp-content/uploads/2013/04/100-Pound-Game-v1.mp3]
Module 1: Assets
Module 2: Mindset
Module 3: Leverage
Module 4: Flexibility
Module 5: Risk
Module 6: Debt
Wrap-up & Feedback