5 Appreciating Assets That Build Your Wealth

5 Appreciating assets that build your wealth
Aug 22, 2023 min_read

Everyone wants to become wealthy and live comfortably — that's why we've come up with 5 appreciating assets that build in your wealth! We'll walk you through every definition and provide appreciating assets examples so that you can get started right away.

You'll need general knowledge about investing before we dive in. We suggest you read our guide about micro-investing and the recommendations for the best investing podcasts to familiarize yourself with the terminology and trends!

Additionally, you might need to figure out your current net worth which consists of your income, savings, investments, and other things that help you build wealth. Even if you put your money into savings accounts, your net worth will increase!

That's because money in savings accounts makes even more money over time due to interest rates. Most of the stocks and mutual funds in your investment portfolio should work similarly. However, there are alternative investments you can make to build wealth.

Before jumping to the examples, let's differentiate between appreciating assets and depreciating assets! It'll allow you to make smart decisions regarding your finances and make even more money.

What Is An Asset?

To make things simple, an asset is an investment or purchase that has value in terms of growing wealth, covering debts, and other financial commitments. It can be anything from a car to a phone as long as you can sell it.

Most of the time it's a physical item that you buy. However, it can also be something from the stock market like mutual funds that will appear in your investment account. There are two types of assets, so consider them before committing!

What Are Appreciating Assets?

Appreciating assets are one of the two types of assets you can acquire. They appreciate in value over the long term. Such assets include index funds, mutual funds, stocks, private equity investments, art investments, real estate investments, etc.

The most important part of appreciating assets is the fact they bring you more financial value via interest rates or otherwise appreciate in value. That's why a lot of financial advisors tell you to purchase appreciating assets and grow your wealth.

What Are Depreciating Assets?

On the other hand, depreciating assets are valuable items that lose their worth over the long term. For example, purchasing a car means you'll lose about 20% of its value once you start driving. If you want to resell it, you won't get the full price back for which you bought it.

Some other examples of depreciating assets include electronics, machinery, vehicles, and buildings (except if you renovate them and do a fixer-upper style of renting). Such financial assets won't harm your net worth but they'll become a liability over the years.

Real Estate Investment

The most straightforward way to increase your net worth is to purchase real estate. It's considered an appreciating asset because it yields a low return and an increase in value over time with an appreciation rate of 3% to 5% annually.

You can purchase it for your own living purposes which will be called a residential real estate investment. It'll allow you to save money that you spent on rent and provide you with a permanent roof over your head! If you can't cover the purchase in full, consider a mortgage.

real estate

Another type of real estate investment is rental property. You can purchase a home and rent it out for long-term or short-term stays. The rental income from such real estate properties tends to be high and you can significantly increase your net worth!

The last type of real estate investment is commercial real estate. It's an appreciating asset that can be very profitable. Purchase a property in a good city place and rent it out to a beauty parlor, vending machine business owner, or convenience store!

Whether you're looking to buy a residential real estate property, make an investment in rental houses, or purchase commercial real estate, you can make money for years to come. Due to real estate investments being appreciating assets, you'll get capital gains because they appreciate in value.

Real Estate Investment Trusts (REITs)

While most of us can't afford to purchase real estate, there's another way to invest in it! It's called real estate investment trusts and anyone can invest their money in them. Real estate investing with REITs is simplified and doesn't require thousands of dollars as long as you have a consistent cash flow.

You can invest any amount you want — even just $100. Such real estate investing is great for beginners as it has low risks involved with average return on investments. That's why real estate investment trusts are appreciating assets and will increase your net worth!

Rare Art Investments

It's an unexpected appreciating asset that will result in long-term gains and a luxurious feeling to your home. While it's not something many people consider, you can definitely invest your money into fine art and watch your appreciating assets increase in value!

Any art piece by a famous artist whether a painter, sculptor, or composer will be a fabulous addition to your collection and a great appreciating asset to help you make more money. Such assets gain popularity if they're exclusive or created by someone famous.

You can sell it to art galleries and museums to ensure financial security for yourself and your family. Also, being an art collector is super cool! You get to appreciate appreciating assets and own them.

Stocks, Bonds, Exchange-Traded Funds (ETFs), And Mutual Funds

While there are various investment strategies, one of the best ways to increase your net worth is by participating in the stock market. You can easily buy appreciating assets like stocks in private equity firms — success is guaranteed!


Another option is to buy bonds which is essentially just you lending money to a company. It'll be classified as debt on their part and they have to pay you back with interest! That's how you can achieve capital appreciation.

Alternative investments include exchange-traded funds (ETFs), index funds, and mutual funds. Each of them has its nuances, so it's important to learn about each of them. Nevertheless, they're great appreciating assets!

High-Yield Savings Accounts

If nothing on this list seems right for you, you can always put your money into high-yield savings accounts and watch your money grow with simple transactions. It's a great way to buy appreciating assets and make your net worth grow on the side!

The process of investing is very simple. You need to set aside some money each month to transfer into a high-yield savings account and acquire an appreciating asset. Afterward, just forget about it and check in to see how your money is doing.

Buy Appreciating Assets that Grow in Value Over Time

Whether you're looking into real estate investing, purchasing stocks from the stock market, or buying a rare art piece, you'll acquire appreciating assets! That's how a lot of people achieve capital appreciation and become rich!

Appreciating assets increase your net worth and help you achieve financial independence. Do you know what else helps you do that? Honeygain! Make passive income from anywhere in the world and you won't even need to buy appreciating assets to receive your payout.