How to Increase your Wealth?
Wealth measures the value of all assets of worth owned by a Person, Community, Company, or Country. Wealth is determined by taking the total market value of all physical and Intangible assets owned, then subtracting all debts. Essentially, Wealth is the accumulation of scarce resource.
Unlike Income, which is a flow variable, wealth measures the amount of valuable economic goods that have been accumulated at a given point of time.
Why Wealth is so Important?
I think I have the perfect answer to your question.
It is found in the novel, The Shell Seekers, by Rosemund Pilcher. This is the excerpt.
“Money is not important to me. It never has been. It’s only important if you don’t have any. Because it buys lovely things. Not fast cars or fur coats or cruises to Hawaii or any of that rubbish. But real lovely things like independence and freedom and dignity and learning……. and time…….”
Ways to Increase your Wealth?
See, Increasing wealth is very Simple but not Easy. Follow these steps –
1.Make Money.
2.Save Money
1.Make Money - This step may seem elementary but is the most fundamental one for those who are just starting out. You’ve probably seen charts showing that a small amount of money regularly saved and allowed to compound over time eventually can grow into a substantial sum.
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2.Save Money - Simply making money won’t help you build wealth if you end up spending it all.
A.Track your spending for at least a month
B.Find the fat and trim it.
C.Set a savings goal.
D.Put saving on automatic.
3. Invest Money - Once you’ve managed to set aside some money, the next step is investing it so that it will grow. Investments vary in terms of risk and potential return.
As a general rule, the safer they are, the lower their potential return, and vice versa. If you aren’t already familiar with the various types of investments, it’s worth spending a little time reading up on them. While there are all kinds of exotic investments, most people will want to start with the basics: stocks, bonds, and mutual funds.
