Consumptive Assets vs Productive Assets: Which is More Important to You?

[Suba]

Assets are resources that we use to support all our daily activities and lives. Based on the theory of needs, there are consumptive assets and productive assets.

Consumptive Assets are resources that we use in our daily lives, and these consumptive assets do not make money
such as luxury clothes, cars, motorbikes, mountain bikes, smartphones, laptops, etc. Over time, the value of consumptive assets will decrease and even become damaged and worthless.

Productive assets are resources that can make money, either from capital gains or getting rent, interest, dividends, etc. Some examples of productive assets are property/houses, gold bars, stocks, bonds, crypto, etc. So the value of productive assets will continue to increase or can create passive income.

In your opinion, which is more important between consumptive assets and productive assets?

 

[SilverLance]

While both are necessary, focusing on productive assets first gives you financial security and the freedom to enjoy consumptive assets later without financial stress.

 

[eLdavis]

Both are important as they have their uses. Even some of the consumptive assets you made me mention of can also be used to make money as well.

 

[Augusta]

PRODUCTIVE ASSET is better as items that is capable of producing or allows for the production of an item or the provision of a service of economic value.

 

[SilverLance]

If your focus is financial independence or business growth, prioritize acquiring productive assets.