This week, we’re moving on to intangible assets. These are investable assets other than the financial wealth (like stocks) and physical assets (like a house) we discussed last week.

Even though intangible assets are harder to quantify, there is no doubt that they offer tremendous long-term returns to smart and patient investors. 

We’ll start with the obvious: your skill set and track record. 

Why invest in these assets?

In general, the more in demand your skill set is, the more money you will be able to earn for an hour of work.

In highly capitalist countries, this effect can be very large, but it’s somewhat muted in more socialist-leaning economies. 

Track record is important whenever you need to provide proof of your skills for things like job applications or project proposals.  

Old vs. new

Before talking about ways to invest in skills and track record, we must first acknowledge that the world is changing. 

In the outgoing model, the goal is to get into university, earn a degree, use that degree to get a job, and use that job to build a typical consumerist lifestyle. 

It’s common for people living this model to see their job as something undesirable that must be done to buy the desirable things in life. 

This old model is pretty sad…

Luckily, a new model is emerging, where adding value to society in inspiring and stimulating ways is the primary goal. 

Key differences between old and new

Learning 

• Old: Mainly theory at university
• New: Lifelong applied learning while experimenting with different inspiring options for adding value to society

Skill set

• Old: A specialization that is currently in demand
• New: Future-oriented and more diverse, evolving as required for pursuing a long-term passion

Track record

• Old: Degree or diploma
• New: Various online platforms that permanently store digital value created (or a record of physical value created)

Inspiration to work

• Old: Big house, nice car, providing for a family, buying the good things in life
• New: Interest, curiosity, passion, purpose, long-term vision

Where to invest?

We’re currently in an interesting transition phase between the old and new models. This phase will take a long time to play out, so I’m by no means saying that the old model is not a viable way to make a living.

However, regardless of how deeply entrenched you are in the old model, here are three future-proof ideas for intangible asset investment:

• Identify your purpose in life
• Find ways to build skills aligned with that purpose by applying them in your life and work
• Gradually build your online track record so that it aligns with your purpose

There’s no need to do anything drastic. Just gradually invest as much time as is practically achievable in skills and track record that aligns with your inspirational purpose. 

Like any other investment, this strategy will take many years to really bear fruit.

Just keep patiently investing and watch how life gradually gets more inspirational and exciting 🙂