What Is Wealth And How Is It Created?
Have you ever thought about what wealth actually is?
The Oxford Dictionaries defines Wealth as:
- An abundance of valuable possessions or money.
- The state of being rich; material prosperity.
- Plentiful supplies of a particular resource.
- A plentiful supply of a particular desirable thing.
In material or monetary terms, wealth is created when the value of the ‘output' is greater than all the combined resources used to generate it.
Here is another definition of Wealth:
Wealth: As defined by R. Buckminster Fuller, the number of days you can survive without working for money, while still maintaining your same standard of living.
Here is short video on “What is Wealth”:
(My thanks to Foundation For A Free Society for this video)
In Robert Kiyosaki's book ‘Rich Dad Poor Dad‘ he talks about the ‘CASHFLOW Quadrant':
E is for Employee
S is for Self-Employed or Specialist
B is for Big Business
I is for Investor
According to Robert Kiyosaki's principle, it is only in the right hand side of the quadrant that you are able to create wealth.
On the left side of the quadrant are Es and Ss. They pay the most in taxes and trade their time for money.
On the right side of the quadrant are Bs and Is. They pay the least in taxes and create or invest in assets that produce cash flow for them even when they’re sleeping.
And in a blog post by Robert's wife Kim; “Wealth is Measured in Time“, she goes on to say that there is a distinction between being ‘Rich' and being ‘Wealthy':
“Rich is measured in money and wealth is measured in time. Most people focus on getting rich rather than becoming wealthy.”
and gives an example of how you would calculate your wealth in terms of the number of months
In order to calculate your wealth, you first need to determine what your monthly expenses are. Next, calculate how much money and assets you currently have. Remember, this exercise assumes you do not have income from a job. Once you know your total monthly expenses and your sum total of money available, you can determine your wealth by dividing your total sum of money available by your monthly expenses. This gives you your wealthy number, measured in months. Here's the formula:Total amount of money ÷ total monthly expenses = wealth number (months)
Online Wealth Learning Systems
In my Online Wealth Learning Systems TM coaching programs, I provide insights into systems that when implemented correctly, will lead to the creation of wealth in your life, whether that be in monetary value or Time, leading to a higher quality of life as a result.
Here is an example of a system that I use myself to promote my online business while generating a residual income at the same time.
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