To begin with, wealth is not the same as money; money is simply a tool for measuring and storing it.
Simply said, wealth is the value we create as a result of a production process. For example, combining a cup, hot water, and tea leaves creates a production process that adds value since consumers prefer hot tea. As a result, new wealth is created.It is sold for money in order to maintain that richness, i.e. to keep it delightful before it turns cold. The quantity of money received is a reflection of how much wealth generated.
So, why are two people who work roughly the same number of hours a day not equally wealthy? That is, we are discussing investment and operating more efficiently.
It's safe to say that if you spend your entire life brewing mugs of hot tea, you'll never get anywhere.
Making mugs of hot tea for years would qualify you as an expert in this field. Of course, if you pay close enough attention to it, and of course, to be able to do so, you must have a strong desire to make tea. This is referred to as investment.
Because we only have two hands, there is a limit to how many cups of tea one can make in a day. If we educate others how to do what we do, they will be able to produce more cups of hot tea than we could on our own.
Why would we do that? If we exchange our knowledge for ten percent of every cup of tea created, we will have exchanged wealth worth more than we could produce on our own by the time we have taught ten people. It's more strategic if we spend the entire day teaching others how to make hot tea cups. This is a more intelligent way of operating.
I would define been wealthy as having objects that can translate to a appropriate value, which has the units of money. 'Wealthy' would mean that you have a fair amount of value more than another person living in the same community.
How is wealth created?
"Seek wealth, not money or prestige," by Naval Ravikant.
Having assets that make money while you sleep is wealth. Money is the medium through which we move time and wealth.
Money is the monetary reward you receive, which you can exchange for time or assets.
Money, on the other hand, depreciates over time due to inflation in its original form.Furthermore, you must always work hard in order to earn more of it.As a result, trading for other items is only effective in the short run.
With that in mind, here are some strategies for accumulating wealth:
-Make your savings automatic.
-The key to saving money is to be frugal.
-Invest at least 10% of your monthly earnings.
-Credit Card Debts Should Be Avoided.
-Streams of Passive Income.
-Set financial objectives.
-Put money into it.
-Acquire High-Paying Skills (Affiliate Marketing).
-Having assets that make money while you sleep is the essence of wealth.
Simply put, wealth is created by the exchange of money, goods, and services in a free market. Someone wants what you don’t, or what you can produce more easily than others. As such, you can offer your goods or services to other people in exchange for money, and then you can use that money to buy goods that other people have and don’t want and/or goods and services that other people can produce or provide more efficiently than you can. If you live within your means and have a surplus of money, you can invest that money in profitable ventures that provide more and better goods and services. Voila, wealth!
Imagine that you have a farm and you grow only corn.
Now imagine that you have a neighbor who is a dairy farmer that produces only milk.
You decide you’d like some milk, but having no cows you shake your sad head and get about the business of growing corn.When harvest time comes you have been incredibly lucky this year and your crops have been so abundant as to overflow your larders. What to do with the excess? you think, before remembering your neighbor with the milk. He seems to have encountered a similar problem, and has excess milk from what he needs. You agree to trade some of your corn for some of his milk.
As Charles Tips said,"the driver of wealth is being able to produce more than you consume - however having more than you can consume of a good is of no value unless you can transform that excess into something you desire".
Thus, I would posit that wealth is primarily created through a mutual exchange of goods wherein both parties feel as if what they have given up is less valuable than what they received.
How am trying to create my wealth?
- Having multiple source of income: Aside my regular job,I also try other sources of income like cryptocurrency trading, Blockchaingaming,sales rep and programming.
-Acquiring different skills- Life saving skills I acquired in medical school,web development skills I acquired through attending I.t schools,trading skills,I learnt online are some skills that I rely on to create wealth.
-And finally,I try as much as possible to avoid debts while I save my little earnings too.
Interesting article @coolkris 👌
I like your final quote.
This is a very strategic thought that anyone can get into their life. Super Article and worth reading 🙏🙋
I don't see you promoting anyone in this post. You should mention someone who wrote in #wealth before. By tagging the author, sharing a clickable link to his/her post, and quoting the part you liked fron the post.
You can edit this post adding what I mentioned above and that will be accepted in #dcc