Wealth is nothing but large amounts of savings or better investments. One can be wealthy with lots of possessions, but most of them won’t pay an income.
Wealth is a pile of money, while Income is a stream of money that allows you to spend money every day, week, or month. In that sense wealth is static and income is dynamic. However, as most wealth is not in cash, but in some sort of investment and the value of such investment can fluctuate on a day-to-day basis, even wealth is somewhat dynamic. It just does not flow like income into expenses.
Managing wealth has different aspects, such as investments, income streams, insurances, inheritance, and charity. Also to manage wealth may be a significant effort in itself, almost like a business to run. But like a business, you can hire advisors, and accounts to do the work for you.
In the Victorian age, wealth was inherited and living expenses were adjusted to the returns that the wealth produced. Accumulating wealth was largely political through carrying favors with the king who had the power to grant titles and land that produced the return. Further of importance was building relations through marriage and diplomatic efforts. In […]
The secret foundation of accumulating wealth Read More »
The three pillars of wealth are: Budgeting, Saving and Investing.
The Three Pillars of Wealth Read More »
