Wealth creation

[Berryfolia]

Wealth,security and freedom are not a result of what you do….
I can equally assure you that what you do produces income, but income can disappear overnight.


Wealth, security and freedom come from what you own,never by a paycheck or what you owe.
In my own view,wealth is not money rather money is just an instrument to measure and keep it going.
Wealth is simply the value that we create by production process.

For instance,if someone is able to create wealth without creating more value, and it must be at the expense of another source.
It’s been assum as a zero-sum game and has negative effects to economy,that’s absolutely a bad ideology.

[stadus]

Let's start with the definition of wealth.

https://www.investopedia.com/terms/w/wealth.asp

Wealth is the total value of all assets owned by a person, community, company, or country.

It's measured by taking the market value of all physical and intangible assets owned, then subtracting all debts. It can be seen in either absolute or relative terms.

So with that definition, it’s more like a person is referred to as wealthy not because they rely on a paycheck, but because they have a business or investments, and at the same time, they have debts, which is normal for people venturing into business. Net worth is what really tells if someone is wealthy or not.

And when we say 'business,' that means growing our money with our own strategy, giving us the freedom to explore different ways to earn, not being stuck in an 8-hour job earning minimum wage or even just above it.

[Oluwa-btc]

Wealth, security and freedom come from what you own,never by a paycheck or what you owe.
In my own view,wealth is not money rather money is just an instrument to measure and keep it going.
Wealth is simply the value that we create by production process.

For instance,if someone is able to create wealth without creating more value, and it must be at the expense of another source.
It’s been assum as a zero-sum game and has negative effects to economy,that’s absolutely a bad ideology.

Good and fine but if you say wealth is not money how do you describe one who's wealthy? Isn't it by how much money and assets he must've acquired so how do you get to explain that. Yes I know wealth is not money but it's generated from money so if you keep money aside how do you tend to create the production process you talked about without money being involved. It's simple wealth is created by so many means and money is the main source or key factorbit along the line through it you create investment and long term assets.

[franky1]

Good and fine but if you say wealth is not money how do you describe one who's wealthy?

i consider myself wealthy(cheers bitcoin), ive retired very early, enjoy travelling, no debt, bills paid upfront in advance to never need to care about getting payment demands, have no money worries

my fiat bank account is not stashed with cash.. its not even 1% of my "wealth"
having cash on hand makes no returns, its just there to be spent
i have enough cash available to cover multiple months of spending/emergency, but the majority of my wealth is in assets(again cheers to bitcoin)

wealthy people dont have majority of value stored as cash under the pillow or fiat bank account, majority have value is stored as assets accumulating more value, such as a fully paid-off home, stocks, shares and crypto

..
rich people are cash heavy as they like to show off their wealth, they are more on the liability side of big value. they buy depreciating assets like flashy cars and other objects that look shiny to show off to friends and neighbours but wont get them returns, they are cash heavy to always be able to buy things as wanted

i know i can afford to buy anything i like but i dont need to buy everything. so i prefer to store my value in assets that bring returns

so in short being wealthy is not about being cash money heavy, its about having value in assets that accumulate more value

[TheUltraElite]

End of the day, your money at hand is what is going to pay for your bills and groceries to eat. Those are short term goals.

Long term goals would be investments made over years of earnings. A job will help in this phase, starting from what you may have inherited or previous jobs.

Creating wealth is a term that could have many meaning, savings being one part of it. But investments that lead to recurring returns like interests could be another.

[franky1]

End of the day, your money at hand is what is going to pay for your bills and groceries to eat. Those are short term goals.

Long term goals would be investments made over years of earnings. A job will help in this phase, starting from what you may have inherited or previous jobs.

Creating wealth is a term that could have many meaning, savings being one part of it. But investments that lead to recurring returns like interests could be another.

topics like this keep popping up

so the advice
starting from nothing
getting a job that allows you some excess cash after bills is a start
initially save up in a cash account(that offers some interest returns) an emergency fund - savings=emergency fund
this is going to be enough to get you by for a month or two if bad things happen without stress or anxiety

also dont be a spend-aholic, instead be frugal at the start. buy only what you NEED not what you want.

then its time to accumulate wealth via investments that 'grow' in value
this is harder to advise as regions of planet have different situations. EG cost to rent vs mortgage. or a regions stock exchange is at its premium compared to other stock exchanges that are at their cheapest.

but general advice, buy low:sell high.. repeat

the reason to have the savings first is so that your not tempted to badly sell off investments when not profitable due to surprise real-life events. instead the savings will buffer you to give you time to make adjustments to life or make smart decisions about investments without time pressures

the key to getting started is to have as much excess funds after essential spending to stockpile value in investments, so that you can invest more faster at the beginning. so that as it grows, it accumulates more and sooner. then once you are self sustainable, with a nice amount of wealth, you can enjoy things more

[Salahmu]

Wealth,security and freedom are not a result of what you do….
I can equally assure you that what you do produces income, but income can disappear overnight.

Wealth, security and freedom come from what you own,never by a paycheck or what you owe.
In my own view,wealth is not money rather money is just an instrument to measure and keep it going.
Wealth is simply the value that we create by production process.

For instance,if someone is able to create wealth without creating more value, and it must be at the expense of another source.
It’s been assum as a zero-sum game and has negative effects to economy,that’s absolutely a bad ideology.

The three things you mentioned are all the results of your efforts, let me state why is like that, if results is removed as the outcome of labour then there is no way wealth can be generated, for example someone who was not wealthy at the beginning but began to do businesses and other investment and within few years he became very wealthy, is obvious the wealth came as a result of all the things he did because if he hadn't done it then there wouldn't have been any wealth. Security can also be enhanced when someone is wealthy because unlike when you had non and the security was just by yourself but after being wealthy you can have security watching and guiding you all the time. However you are right of saying money is just a substance of wealth because assets are the things that's measured as wealth. However does an already wealthy person have to create more value before they would be regarded as wealthy?, actually wealthy can also be one assets of value they have so long as the productivity is massive then is sufficient.

[knowngunman]

I have said this several times that wealth is not about how much you earn, it's all about how much or what you keep. Of course, there's no way you can create wealth without earning but it's not just about earning or saving. It is the way you balance all of them i.e both your earning, spending and savings. The problem here is that there is no strategies to wealth accumulation because most of the wealthy people have distinctively different strategies for accumulating wealth and there's no single manual that contains these strategies.

Let be realistic, most wealthy people never knew what they were doing would eventually lead them into a real financial wealth, it mostly started like gambling that eventually paid off. Environment, background and other factors need to be considered when discussing wealth creation hence, there's no a unique pattern.

[Don Pedro Dinero]

It is curious because in Spanish we do not talk about ‘creating’ or building wealth, and perhaps if we have been doing so recently it is because of the influence of the English language. We talk more about getting rich. I think in this sense talking about building wealth is more accurate because it is something that you can accumulate, little by little or more quickly if you have a lot of talent, luck or a combination of both.

I have said this several times that wealth is not about how much you earn, it's all about how much or what you keep.

Not only keep I would say, because if you only save, even if you keep something, you will usually lose a lot of purchasing power due to real inflation. The key is to invest.

Let be realistic, most wealthy people never knew what they were doing would eventually lead them into a real financial wealth, it mostly started like gambling that eventually paid off.

I don't know where you get this from, but it's simply not true.

[AVE5]

So is our contention here about what wealth is about? However, you can actually create wealth from your salary but must invest it in a reproductive sector where your incomes can be revalidated untimely on regular basis with a potential value to increase your bankrolls.
It's also important to note that wealth isn't reliable when the source of income isn't diversified because the economy can be a turn around against the wall where you invested.

[Rockstarguy]

Good and fine but if you say wealth is not money how do you describe one who's wealthy? Isn't it by how much money and assets he must've acquired so how do you get to explain that.

When we talk about money, it is considered to be income. Wealth can be defined as valuable asset which
Can be as investment,  physical property, or any item that generate money.

Yes I know wealth is not money but it's generated from money so if you keep money aside how do you tend to create the production process you talked about without money being involved. It's simple wealth is created by so many means and money is the main source or key factorbit along the line through it you create investment and long term assets.

Money is not wealth instead money is a product of wealth. What brings value is known as wealth. Just like if you are given a huge amount of money it does not make you to be wealthy except if you invest the money , this will make it to be be valuable and it will generate money for you. But when you don't invest money , no matter how huge the money could be you will still spend it all. In a simple term wealth is just value that generates money. Money is the end product of wealth.

[Die_empty]

So is our contention here about what wealth is about? However, you can actually create wealth from your salary but must invest it in a reproductive sector where your incomes can be revalidated untimely on regular basis with a potential value to increase your bankrolls.
It's also important to note that wealth isn't reliable when the source of income isn't diversified because the economy can be a turn around against the wall where you invested.

Wealth creation is the ability to develop a steady stream of income through a single or different sources that is enough to achieve your financial goals. Some people rely on a high paying job to meet thier financial needs. The problem with is that no job is secured. It is safer to diversify your source of income in order to reduce the risk that might affect investments. People who invested only in the real estate business in Ukraine might be experiencing losses since most people have fled the country due to war.

[BIT-BENDER]

If your pay check for something done is above 100 million dollars and above after Tax won't that be called wealth? What I am saying is that this topic is not definite and can have some exemptions.
Yes owing something of value is a good channel to wealth but your early paychecks can propel you or help in terms of finance to achieve your dreams.

When you use the word wealth creation it could also mean the process or route of becoming wealthy and so many billionaires actually got help from the pay checks they got in their early days.

[karabiber]

True wealth is a deep concept. The power to produce actually determines our wealth. I think time plays a very important role in wealth. How you spend your time is very important. If you can live your life without being dependent on other people's decisions, if you have time for your loved ones and passions, you have the greatest source of wealth. Being healthy is also one of the greatest riches. These are invisible but very valuable parts of wealth. They cannot be measured in money, but when they are missing, money loses its meaning. So money is just a tool. The real wealth is what you do with it and how you get it.

[Despairo]

I don't know where you get this from, but it's simply not true.

I think he mean about taking risk.

I can agree with him, like investing in Bitcoin before 2021, I think it's kind of gambling because people thought $19K was the highest Bitcoin price and it's really risky to buy when the price was just $3K-$6K, it might drops lower.

But, people who "gamble" before 2021 were correct, Bitcoin make new ATH for hitting $69K.

Or maybe we talk in business, the businessman already make research, analysis and action, but no one know if his business will be successful or not.

[reagansimms]

You will not be rich if you just sit still without doing something that can make money. Actually, the definition of wealth is very simple, if you only have one car, it means that the value of your wealth is only limited to that car, that's the cycle.
As long as you have something that can be valued with money, you are considered rich. You have to be a machine that can create wealth for yourself, as long as you can do it, sooner or later the amount of your wealth will increase.

[Queentoshi]

Wealth, security and freedom come from what you own,never by a paycheck or what you owe.
In my own view,wealth is not money rather money is just an instrument to measure and keep it going.

I agree with this because wealthy individuals do not get worried when they run out of physical cash. They are confident that there is an established source from which they get the money they need, when they need. This source is called an asset. Wealthy people have accumulated a lot of assets in businesses, and in other investments that they committed to getting instead of acquiring and accumulating liabilities. Wealth creation is an intentional act; wealthy people today were very intentional yesterday.

[Fortify]

Wealth,security and freedom are not a result of what you do….
I can equally assure you that what you do produces income, but income can disappear overnight.

Wealth, security and freedom come from what you own,never by a paycheck or what you owe.
In my own view,wealth is not money rather money is just an instrument to measure and keep it going.
Wealth is simply the value that we create by production process.

For instance,if someone is able to create wealth without creating more value, and it must be at the expense of another source.
It’s been assum as a zero-sum game and has negative effects to economy,that’s absolutely a bad ideology.

The best advice I ever came across was that your money should always be earning more money. If your money is stuck in a bank account earning 1%, even if you are saving as hard as possible it is losing value all the time due to inflation. That means $100 today will buy less than $100 would have bought last year on average. So at a minimum you need to have your money earning more than the inflation rate just to keep up, but really you want it invested in companies that are earning beyond the inflation rate which is possible right now. This all requires that you have a job with a bit of spare capacity in your budget and budgeting is one of the most important skills you will learn as you start this journey.

[Findingnemo]

You're rich irrespective you hold it as just cash all in bank account or everything in assets that holds the value.

But we are talking about the wealth creation here, not the difference or wealth and money. And the process is simple make money, invest them on a business by yourself or in a company or something that appreciate over years and then keep repeating the process again and again. The first million will be the hardest once you made the capital that can be multiplied much faster with the compounding effect.

[tabas]

Why will it be with someone's expense if you've made your wealth and did it to the top? The value was made by that person who has become wealthy through their own means, and that's why if there is an economic contribution that person makes, we know it in various ways that they can, and one of them is through taxation. Yeah, we all pay taxes but big guys like them, they pay more than what we can imagine not unless they know the tax loopholes that are being done by the most wealthy in the world and have some foundations to support to avoid being taxed heavily.