What is wealth? What is Income?
My last post talked about sub prime mortgages and the fact that “The erosion of wealth is staggering”. So, I’ve decided to talk a little bit about wealth, wealth thinking and how you can develop what I call a wealth ethic.
The question is “What is wealth?” According to Webster, wealth is defined as “abundance of valuable material possessions or resources or,abundant supply or all property that has a money value or an exchangeable value” but reading this definition doesn’t provide clarity. So again “What is wealth”?
If you go Google “What is wealth?”, you get a slew of results but no answers. So lets agree on a definition, lets agree that wealth is determined by how long you can maintain your lifestyle without you having to work. In other words wealth means for the sake of this blog that you can live the way you live without having to create any more income.
Which takes us to the next question, “What is Income?”. Income is the money that you generate from your effort or the efforts of others under your control. In other words income is the money you generate from work. Income is not wealth, income is money you receive from your efforts personally or from your business.
Over the next few days, think about ways to create wealth and income. It is possible to do both.
