My friend own a 100Cr house in Delhi. His grandfather bought his house some 40 years ago (the value now stands around 100Cr).

- Since the house has a sentimental value: he is unlikely to sell it.

- Even if he sells it he will get 70Cr in black. And, risks an ED raid.

- He can't rent it out. Because what if the tenant never leaves? He will have a property dispute issue. So 0 cash flows.

His total net-worth might be 110Cr.

But, almost 90% locked in 1 house.

This is called as being rich on paper.

There are folks who have 10Cr liquid wealth. And, generate 10% cash flows on it (1Cr) each year. They "feel" rich.

And, then there are 100Cr people, who don't even make 0.5% cash flows on their assets. They are theoretically rich. But practically stressed.

What makes you "feel" rich is cash flows.

Not the wealth that is locked away.

How is this applicable to you?

1. Own liquid assets (eg. stocks)

2. Own assets on which you can generate cash flows (eg. AirBnB property)

3. Learn to rent your assets (Eg. you got stocks? how do you generate cash flows from it?)

All the above can be started even when you are making your first investment.