Friday, July 9, 2021

The Rich with regards to Assets

 

Forbes measures a person's wealth by his net worth, which is his assets minus his liabilities. Forbes does not look at his depreciating doodads like boats, cars and yachts in measuring wealth.

More money does not make you rich, because oftentimes the more money a person makes, the more he tends to spend!

It's acquiring or building assets that makes a person rich!

That's why the Rich invest either in businesses or stocks, and real estate, as well as other forms of assets like cryptocurrencies, book royalties, etc.

The Rich spend time building up passive streams of income that create assets, not active income (like having a job with salary that requires their presence).

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