There are 4 main asset classes that make people rich.

1. Owning your own business's

2. Investing in Properties

3. Investing in the Stock Market

4. Buying Commodities (Gold, Oil, Etc)

These are the four main asset classes that create long term wealth as they tend to appreciate in value over time.

1. Owning a business is one of the most powerful ways to create wealth because it gives you unlimited upside on the money you can earn. You can earn much more than most salaries. However building a business takes a huge amount of time, money and many business's fail. An easier way to start a business is by doing a side hustle in something you enjoy e.g. baking cakes, teaching or fixing electronics, and then over time you can scale your business by re-investing some of your profits and eventually employ others to run your business for you. If you scale your business to a large company, you can also sell the company for multiples of their profit.

2. Having properties is a classic way to build wealth because you can rent out the property to provide monthly cashflow and it also generally increases in value over time. You can also use leverage when buying a property in the form of a Buy-To-Let Mortgage, this way you can scale by buying more properties when you have enough for another deposit. You can also refinance your properties to release equity, to buy more property. Examples include: Buy-To-Lets, HMOs, Holiday lets, Commercial Property, and Flipping property.

3. Investing in the stock market means you own a share of a company, and is historically a very popular way to build wealth. Long-term stock market returns average 7-10% per year if you invest a World Index Fund. A Index Fund is a basket of stocks (companies). A World Index Fund means you own a small amount of thousands of stocks around the world. The most popular Index Fund is the S&P500, this has 500 top companies in America. Stocks usually provide a dividend which provides a passive income, and stocks usually go up in value over time. Stocks are what make up many pension funds around the world.

4. Commodities are physical assets that tend to hold value during inflation or economic uncertainty. Gold tends to be the most popular and tends to have a long-term store of value. Gold diversified a portfolio because it behaves differently to stocks and property. Other examples include: Silver, Oil, and Natural Gas.

These asset classes all go up and down in value over time. Before you invest in asset classes you must understand the risks and you could loose all your money.

I teach people by making saving and investing simple.

12 May 2026