What do you think money and wealth is?


Wealth treasure

Wealth treasure (Photo credit: Celestine Chua)

You will probably answer wrong. Having the ability to make money—not having it—is what makes us wealthy. You can be merely broke and never really poor

‘Money is not a net income generating asset. Money is not wealth. Money is a medium of exchange.

‘Economists don’t define wealth directly as money, but as the ownership of things that are worth exchanging for other things of value or for money.

‘The more I earn, the more I realise that wealth is not money, but the ability to generate money (and other things of value). This is akin to the difference between saying “I am a dancer” (i.e. I have the ability to dance) and “I was a dancer” (i.e. I once had it but I no longer have it). Being wealthy is equivalent to the first statement, while having money is equivalent to the second.

‘Having money does not make you wealthy, but having the ability to make money, through net income generating assets such as businesses, investments, or even just your own skills, that makes you wealthy. This is perhaps why those with a solid education are never really poor, but merely broke: they have the potential to make money, even if they don’t have money right now…’
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The Dark Side of the Personal Finance Industry
‘The idea that the average person can “invest” their way into a healthy retirement is and always has been a sick joke.

‘When you invest, you’re competing with Wall Street. Even people who spend their entire lives, 50 to 70 hours a week full time, working on Wall Street have trouble developing profitable portfolios.

‘What chance does an uninformed amateur who barely pays attention to the markets and doesn’t really understand what’s going on have?

‘The financial services industry exists to skin you and every word that comes out of its mouth should be treated with maximum skepticism.
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Wealthy With Friends
Long-time friends are friends forever. Study finds we have finite capacity for close relationships.

My first best friend suddenly stopped replying on various online communication tools. I don’t know any reason why he should but that doesn’t bother me. I still consider him a best friend no matter what. He’s probably just luring me to visit him in person.

Your Friends Change—but Not How Many You Have
‘“Although social communication is now easier than ever, it seems that our capacity for maintaining emotionally close relationships is finite,” said Felix Reed-Tsochas, James Martin Lecturer in Complex Systems at Saïd Business School, University of Oxford. “While this number varies from person to person, what holds true in all cases is that at any point individuals are able to keep up close relationships with only a small number of people, so that new friendships come at the expense of ‘relegating’ existing friends.”

‘Dr Roberts, from the University of Chester’s Psychology Department explained: “This study used a novel combination of questionnaires and mobile phone data to show that people have a distinctive pattern of communicating with their family and friends, and that this pattern persists even people make new friends as they go to university or work. Our results are likely to reflect limitations in the ability of humans to maintain many emotionally close relationships, both because of limited time and because the emotional capital that individuals can allocate between family members and friends is finite.”…’
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About DigitalPlato

Poch is a Bookrix author and a freelance writer. He is a frequent contributor to TED Conversations.
This entry was posted in behavior, business and commerce, finance, human interest, Society and tagged , , , . Bookmark the permalink.

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