Uses of welth about 120 words
Answers
Explanation:
The word “Wealth” is commonly used to describe someone who has a lot of money and possessions. This may be true to the public because we have been conditioned by the media and marketing to believe so.
When someone drives a luxury car, we see them as wealthy. When someone lives in an upscale neighborhood, we expect them to be earning more money and are wealthy. Is this true? Yes and no. Before we define someone as wealthy, we should look at their ability to live a life with financial freedom.
If someone builds a business that earns him a passive income of $10,000 a month without him working on it, and the money is enough to cover all of his monthly expenses, then yes, he is wealthy because he can choose to stop working and are still able to maintain his lifestyle.
Take Your Net Worth into Consideration
This is why money and wealth do not define how much you have. Another better word is net worth. Most media ranks rich people according to their net worth, and not how much money they have in the bank.
So it is not the amount of money you save that determines your wealth, it is the percentage of the nest egg that you spend.
There are a lot of professional athletes who make millions, but after they retired, they went bankrupt within a short couple of years because they spent all of their nest egg. Too many people are concerned with living a lifestyle that is beyond their income’s ability to allow for proper savings.
The one who makes the most money may not be the wealthiest. He can earn a million dollars a year, but if he has a high profile lifestyle to maintain and he spends it all, he is as good as someone who earns just a thousand dollars and has nothing left to show for by the end of the month
