Asset Classification

Assets either generate money (appreciate) or burn money (depreciate). For example, real estate generally appreciates as a function of time and cars depreciate as a function of time. Both are considered assets if owned, however, the real estate becomes more valuable with time whereas the car will depreciate to zero. 

Cash generators	Cash burners
Example cash generators	Example cash burners

Wealthy people buy cash generators and avoid buying cash burners. Cash is an asset. However, if you burry money under your bed, it will not generate cash. In fact, the cached money will depreciate proportionally to the rate of inflation.

Managing your money is the key to financial success.

To generate cash with your money, you must place your money into investment vehicles that yield a rate of return higher than the rate of inflation.

Cash generators produce unearned income such as interest, dividends, and capital gains.

Make your money work for you. Place your money in cash generators and avoid buying cash burners.