What Is Ultimate Wealth

What Is Ultimate Wealth

Many people have the​ wrong idea about wealth. So what is​ ultimate wealth? Ultimate wealth is​ when the​ income from your assets exceeds your expenses. it​ does not matter if​ you are only making 20,000 from your assets as​ long as​ your expenses are lower, then you are wealthy. if​ your expenses happened to​ be over the​ amount your of​ your income then you are not wealthy. That is​ basically it. So let's say Don is​ bringing in​ 5,000 a​ month from his commercial real estate and​ his expenses are 2,000 a​ month then Don is​ wealthy. Now let's say Sam is​ bringing in​ 1 million a​ month in​ income from his assets but his expenses are 2 million a​ month he is​ not wealthy.

In the​ above example is​ where the​ majority of​ people get confused. Have you heard people say he must be rich because of​ the​ car, house or​ any number of​ other items a​ person may have.That is​ completely wrong. Those items are liabilities because they do not put money into the​ pocket of​ the​ owner.The next big myth is​ about the​ amount of​ money a​ person makes. This does not matter for​ two reasons. One what good is​ it​ to​ make 20 million a​ year if​ you are spending 40 million year, for​ example Mike Tyson. Next it​ depends on what type of​ income you are earning. if​ your only income stream is​ from your job you may be in​ trouble. the​ day of​ a​ job taking care of​ you is​ gone, this is​ a​ global economy. for​ instance, many baby boomers sold on the​ myth of​ going to​ school and​ getting a​ high paying job are finding themselves out of​ work and​ desperate for​ anyway to​ make ends meet each month. Your job cannot be considered a​ reliable stream of​ income because it​ is​ not. So when you hear someone say so"n"so makes this much a​ year. Dig more deeply is​ it​ income from a​ job or​ income from a​ business, real estate, and​ stocks because that makes a​ huge difference.

Ultimate Wealth is​ when the​ income from your assets(businesses,real estate, stocks) exceeds your expenses. Wealth is​ not a​ high paying job, it​ takes much more than having a​ high paying job to​ be wealthy. a​ good question to​ ask yourself is​ this "If I were unable for​ whatever reason to​ never work another day in​ my life, how long would I survive with my current lifestyle?" the​ answer to​ that question determines your ultimate wealth. When you can survive without a​ job and​ just live off of​ your income from your assets then you are considered wealthy. That is​ considered to​ be true wealth and​ then you are wealthy. Assets are the​ key in​ becoming wealthy. Liabilities get in​ the​ way of​ you achieving true wealth, so cut back on your liabilities and​ increase your assets. That is​ a​ smart strategy to​ increase your financial standing and​ creating a​ great life for​ you and​ your family.

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