A simple formula

Wealth can de described in general terms as the posession of plentiful supplies of a particular resource. However, there still isn't a whole consensus as to what wealth should mean over the course of an individual's life and how that abundance affects his/her levels of well-being. For example, for someone wealth could be having a lot of properties and expensive goods, while for other is as simple as not having to work again for another day of his/her life, with expenses being paid by that wealth. It can even come to the spiritual realm, where spiritual wealth might be just feeling content with oneself and being grateful for what happens in life frequently. However, in this article we'll focus more in the material, explaining why your definition of wealth might be wrong, which will set you up for a lot of disappointments in life, how to fix It and what to apply to reach It. Let's begin:

The wealth equation

For me personally wealth equals freedom, not being worried over monetary concerns and not being chained to a work I'm not crazy about. Though for a more objective explanation, we'll begin to use a formula which will help us define what this is, which goes like this:

Wealth = Money Produced - Money consumed

Which summarized, It just means that wealth is the result of what we produce minus what we consume. When you have a problem in one of these two variables, you know that your wealth finds Itself in trouble. For example, If you consumed more than you produced, using credit cards, loans, and buying things you know you shouldn't have and being in debt, you'll find that the second term is much greater than the first, thus having a negative number, representing the state of your wealth, which can be better described as having none at all.

If you come to produce less than what you spend, It meaning that your sources of income were drastically reduced or cut at all, the situation described previously would repeat Itself, leaving you with a negative chance at wealth.

Then how do I increase It?

You might think that If you cut all your expenses you'll have a better chance at wealth, though there are another factors involved in wealth such as inflation and time. If you reduce your expenses and you suffer from inflation, you'll have that eventually the money produced will reduce Itself and will align again with the consumed part of the equation. Alongside with this just a positive number isn't enough to bring you true wealth, as this would require you to have a net worth that lets you live comfortably for which a yearly salary wouldn't be able to provide.

Then the only remaining alternative is to generate more revenue, for which you have two options: Work more with hopes of getting an increase in your paycheck and a promotion before you die of old age, which will also consume time, resource that is a crucial factor to enjoying your wealth; that or generating an unlimited source of income through entrepeneurship. The advantage of the second method is that It will let you keep as much as you want from the revenues obtained, that It doesn't have a limit as a fixed salary and that It can easily increase over time, for which I encourage you to prepare to take the path of working for yourself.Image taken from Pixabay.com. Author: stevepb

I hope that this article could have given you value as to what real wealth should be, explaining why the only viable solution to increase It is to raise your monetary output with the right way to do It, feeling more than happy If you decide to take this path. Thank you for your support and good luck!