| Thinking Wealth Creation is the most important | | | | events that can adversely affect your living |
| shift in your thinking that must be made if you | | | | standard of living such as job loss, death of the |
| are to achieve your goal of financial independence. | | | | major bread winner, sickness or other |
| And to make this shift in thinking you must | | | | emergency. |
| understand what wealth really is. So the question | | | | Simply put Wealth is the accumulation of |
| then is "What is Wealth?" | | | | resources that are easily accessible to you for |
| Adam Smith in The Wealth of Nations described | | | | use with little or no effort and expense. And you |
| wealth as "the annual produce of the land and | | | | can easily determine your wealth status by |
| labour of the society." And this "produce" at its | | | | answering the question "How long can you so |
| simplest is that which satisfies human needs and | | | | without a pay cheque?" |
| wants of utility. | | | | Thinking wealth creation then should be the |
| And in popular usage, wealth is described as an | | | | foundation of your financial planing as you will only |
| abundance of items of economic value, or the | | | | earn a fixed number of pay cheques during your |
| state of controlling or possessing such items, | | | | working years. Therefore you should be focusing |
| usually in the form of money, real estate and | | | | all of your money and efforts into turning those |
| personal property. | | | | pay cheques into wealth. |
| Here wealth is categorized into three principal | | | | So are you thinking wealth creation? |
| categories: | | | | Are you focusing all of your money and efforts |
| | | | on creating wealth? |
| 1. Personal Property, including homes or | | | | Unfortunately, most person are not thinking |
| automobiles; | | | | wealth creation and this is because they have |
| 2. Monetary savings, such as the accumulation of | | | | grown accustom to earning a pay cheques and |
| past income; and | | | | getting these pay cheques at regular interval has |
| 3. Capital wealth of income producing assets, | | | | given a false sense of security that these |
| including real estate, stocks, and bonds. | | | | cheques will continue indefinitely. |
| And a person is usually considered wealthy when | | | | But you must realize that there will come a time |
| they have accumulated substantial resources in | | | | when you will no longer be receiving a pay cheque |
| either of these categories relative to others | | | | and when the pay cheques stop you will have to |
| around them. | | | | depend on the resources that you have |
| Making wealth an important part of our social and | | | | accumulated over time to sustain you - your |
| economic well being as it provides the financial | | | | wealth! |
| safety net that protects you against unforeseen | | | | |