This post will be a short one as I am swamped with work and in addition have crazy demands on the family front. It will be about the best topic in the personal finance world to discuss, and it is called what is wealth.
Wealth has been defined by Investopedia as: A measure of the value of all of the assets of worth owned by a person, community, company or country. Wealth is found by taking the total market value of all the physical and intangible assets of the entity and then subtracting all debts.
If you do this money management exercise it will reveal a positive number and you might be ecstatic. On the flip side for some, it will reveal a negative number, and a feeling to turn things around to eventually bring things on the positive side of money.
Now I leave you with what is wealth to me and hopefully you can relate to how I described wealth below in Acrostic writing style.
What is Wealth
W – We need to have more goals in life, and specifically financial achievements to get to a new monetary status.
E – Every time you touch or receive money ask yourself how much of this can I save or invest for future compound results?
A – Attaining Assets is the only path to help all of us reach a rich level in a life full of average finances.
L – Liabilities will always be bad for anyone trying to succeed with money management and attempting to build wealth.
T – Taxes are a real concern for anyone with wealth so please plan to master the tax code as much as possible.
H – Hope you embrace wealth, but never place above health, love or joy.
Wealth for me doesn’t mean having a net worth of 180 million dollars, it can mean being happy and content with just enough dollars to cover annual living expenses.
If you can add anything relating to wealth I would appreciate the feed back.
Thanks for reading,
Rich Uncle EL
I like the acronym! How about E – Emergency fund. Do I have enough money in my emergency fund to cover what life will throw at me?
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Great thanks for the input, and it will be very important for anyone looking to amass wealth to have an emergency fund.
"Liabilities will always be bad for anyone trying to succeed with money management and attempting to build wealth." I'm not sure I agree with this. Haven't many who we think of as "wealthy" leveraged and/or currently leverage financing to accomplish their goals? Even large companies look to leverage low-interest debt to accomplish their goals – whether they need the debt or not.
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DC I understand what you mean that certain investors need some leverage to invest, and that’s fine for them. But for the masses debt usually means non investing debt aka debt that doesn’t provide any return above cost. It is more of a financial setback and not a financial win.
BOOM! You should turn this into a pdf for people to print out and put on their walls 🙂 Loved it man!
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Yes I will J. I might need to spice it up a bit. Maybe I’ll hire someone to do the artwork. Haha
I especially like your "E". I tend to think of each dollar that passes through my hands: spend this now, or spend it later? I like your way of thinking better though: spend this now, or invest it now to spend it and whatever it earns later. Makes the latter option more appealing!
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Thanks for the feedback, I was feeling creative and it just all came together. Wealth means wealth, but it can mean different things to different people. As long as we save more every year, we can reach some form of wealth.
Great acronym Haha. Should be used as a daily reminder to many people.
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It is thanks, I appreciate the feedback. Thanks for commenting.
Who is the happy (wealthy) one? The one who is content with what he has. As you stated wealth is not some dollar amount rather a state of being happy and content. Want to have $100 million and be unhealthy and live in pain each day or have modest means but feel great physically and mentally. Thanks for sharing.
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I agree Div hut money means little if you’re unhappy. Being content is the name of the game.