Building wealth through capital gains and passive income are two different strategies that can be leveraged to increase your net worth. The words "Building Wealth" are thrown around loosely, but what do they actually mean?

Capitals gains grow your wealth through the appreciation of the assets in your portfolio, whereas income generating assets grow your wealth through the money they pay out, which can then be held in cash or reinvested. Both produce different returns on investment and are suited to different investment strategies. Assets that appreciate are more suited to a longer term investor, whereas income generating assets are better suited to someone trying to diversify their income streams. It is therefore important to know what your investment strategy so that you know what assets are best suited to your needs.

Both approaches also require different levels of time commitment, with one requiring more time than the other, but with it requiring more patience and a longer time horizon. You should also be mindful of the tax liabilities that come from investing income, as you may be able to optimise your taxes based on the applicable legislation.

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Chapters:
0:00 - Intro
0:38 - Asset Appreciation Explained
1:00 - Passive Income Explained
1:33 - Understanding Asset Behaviour
2:49 - Your Investing Goals
5:19 - Time Commitment
6:47 - Tax Implications

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About me:

Welcome to Millennials With Money!

My name is Jonny, I'm a financial analyst from the UK, currently living and working in Spain.

I created this channel to help and inspire young people to improve their financial situation and live life to the full by sharing my own experiences with money and living abroad.

I upload content on a weekly basis about personal finance, how to invest your money, tips to help you save more money, real estate and property, and travel and living overseas.

Everybody is welcome in the Millennials With Money community! Let's get this money!!!

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#wealthbuilding
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DISCLAIMER: The opinions and views shared on this channel are for entertainment and educational purposes only and are not to be taken as financial advice. Always conduct your own research prior to making any financial decision. Millennials With Money cannot be held responsible for any financial loss incurred from any decisions you make following this video.

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