Financial Wealth

Photo Credits: http://www.cbsnews.com/news/financial-wealth-its-time-not-money/

Wealth that is based on ownership of financial assets such as stocks, bonds, money, and government securities.  It is often times mistaken for the amount of money an individual makes or has in actual dollars.  A more consistent way of measuring financial wealth over time would be the number of years of financial freedom that is accumulated.  According to CBS, the measure of wealth in years is net worth divided by annual expenditures.  Disregarding inherited wealth which is not of the norm, the two ways of increasing wealth are spending less or earning more or both.

For Further Reading: http://www.cbsnews.com/news/financial-wealth-its-time-not-money/

Glossary, UD: Economic Inequality, ,

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