Building Personal Assets

When you have children you have to think about how you will pay for college or get them braces or how you can pay for any big expense. One of the best ways you can do this is to build assets that will fund them. Having a savings account helps – but it is not enough.

The most common assets include; property, annuities, IRA’s, bonds, stocks, and money market accounts. Not everyone can afford to invest in something like this. If this is the case than you need to do research and learn what you can do at your income level. The best way to do this is to build assets from the money that you have.

Your main assets are your savings and checking accounts. Sit down and talk with your bank to see if they will approve you for a line of credit on your checking account. This helps to protect you from overdraft charges and will give you money in time of need. Also set up another account. You should have one checking account for paying bills and the other for any personal use.

Government bonds are some of the easiest and most affordable assets that you can get your hands on. The Series EE bonds are some of the most popular. These will sell at discounts and then are redeemed at a higher value. These can be purchased through banks, payroll deductions, or online. They will cost between $25 to $5,000 a piece.

The cost of the bond is half of its face value. This means that a $25 bond is worth $50. Over time interest will gather. Most parents will purchase these when their children are young and allow it to accrue interest for college.

Mutual funds are another popular form of asset to have and are great for people on a tight budget. These are bought in units known as shares. The minimum you can have is $50 that will be taken from your checking account each month so that you can buy into a fund.