1. Assets are things or investments that you have made that tend to go up in value. That is how the name “asset” has been created for anything that puts money in your pocket. There are a lot of investments that will actually lose you money and I do not like calling them assets. So anything that generates income for you is an investment or an asset. Keep that in mind for a very long time that you are here to make money not lose money. You have to evaluate every asset and put them in asset classes so later you can observe them grow bigger. I like it when I classify everything and I know in which areas I have placed my money. This way I can observe and see if there are other opportunities for making money in other asset sectors. I like Real Estate and Technology sector for example. Rule of compound interest is when you have assets that are growing and they pay you to buy more assets. See what happens when you are getting income and it grows even faster than before? That is the compound effect of investing. I personally love to invest into assets that pay me income so I can buy more of the same asset or another asset with it. Because over the years this rule will make you rich!