It is human nature to place a high value on the things which we create. It is the same reason that we hang on to old report cards, newspaper clippings, and weekend warrior projects. But in the pursuit of bigger and better hustles, taking an inventory of assets and determining their present and future values is important.
To illustrate this point, I draw from a personal example. As a child, I was an avid collector of all things Star Wars. Posters, customizable card games, and most of all, action figures. I would dump all extra money into the rarest of figures. I would ask for figures, by name, for birthdays and holidays.
Though I accumulated all of these action figures, I never opened them to play with. I admired them. I curated them. I noted production years/runs.
But a few weeks ago, as I was getting something out of storage, I came across the stash of action figures. I took a look at the contents of the boxes, and started to think about the future value of these "assets".
I came to conclusion that the value that they held were not in their present value, but the sentiment they carried. I spent endless hours driving to store after store with my mother. We talked on every subject, and my relationship was stronger as a result of that time spent.
What followed was, what I consider, a moment akin to Christmas morning. My kids and I sat for the better part of an hour tearing open packages containing these treasures.
Since then, on a daily basis, my children enjoy an entire box full of Star Wars action figures. Bounty hunters take tea with princesses, and droids share real estate with Fisher-Price Little People. And in each of these moments, I think not of the acquisition cost or resell value, but of the emotional value attached to each action figure.
When determining the value of assets, whether tangible or intangible, it is critical to understand their present value and the support they offer to your current hustle. If the carrying cost of the asset is high, then a profit/value analysis should be run to ensure that it is exceeding the yield of your current hustle income/value.
Though carrying costs may be low, the emotional investment of carrying assets may prove to be a distraction from current goals as well. Divesting of the assets the neither increase in value, or serve a greater purpose to be consumed/deployed in the present, should happen on a constant basis.
