1. D A T E – 2 1 / 0 6 / 2 0 2 2
Increase Your Wealth
2. What is 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.
3. 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…….”
4. Ways to Increase your Wealth
See, Increasing wealth is very Simple but not Easy.
Follow these steps –
1. Make Money.
2. Save Money
3. Invest Money
5. 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.
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.
6. 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 riskand 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.
7. Ways Of Investing
Stocks are shares of ownership in a corporation. When you buy stock,
you own a tiny slice of that company and will benefit from any rise in
its share price, as well as any dividends that it pays out. Stocks are
generally seen as riskier than bonds.
Bonds are like IOUs from a company or government. When you buy a
bond, the issuer promises to pay your money back, with interest, after a
certain period. As a very general rule, bonds are considered less risky
than stocks, but with less potential upside.
Mutual funds are pools of securities—often stocks, bonds, or a
combination of the two. When you buy mutual fund shares, you get a
slice of the entire pool. Mutual funds also vary in risk, depending on
what they invest in.
