Comments on: Wealth – The Two Things That Matter http://moneyning.com/money-management/wealth-the-two-things-that-matter/ A personal finance blog where we share insights on carefully saving money, investing, early retirement, mortgages, stocks because the little things matter in achieving financial freedom! Sat, 21 Nov 2009 08:01:45 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: svend http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12978 svend Tue, 13 Jan 2009 17:10:27 +0000 http://moneyning.com/?p=2064#comment-12978 greeting again! I want to thank the creator of MoneyNing for his nice comments on my recent post. I have thought some more about what I wrote, and have made a few "improvements"... I hope you all agree! WEALTH = (Assets - Liabilities) + Passive Income + control over your time + low tax liability + good health to enjoy your wealth! svend www.svend007.com www.svend.com greeting again! I want to thank the creator of MoneyNing for his nice comments on my recent post. I have thought some more about what I wrote, and have made a few “improvements”… I hope you all agree!

WEALTH = (Assets – Liabilities) + Passive Income + control over your time + low tax liability + good health to enjoy your wealth!

svend
http://www.svend007.com
http://www.svend.com

]]> By: Chiko http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12971 Chiko Tue, 13 Jan 2009 11:47:41 +0000 http://moneyning.com/?p=2064#comment-12971 Wealth to me means the ability to control your time and money. Currently I am focusing on creating passive streams of income so that I can have control of my time. Once that is complete I will focus on how to gain control of my money, then I will be wealthy. Simple. Wealth to me means the ability to control your time and money. Currently I am focusing on creating passive streams of income so that I can have control of my time. Once that is complete I will focus on how to gain control of my money, then I will be wealthy. Simple.

]]> By: MoneyNing http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12966 MoneyNing Tue, 13 Jan 2009 06:28:49 +0000 http://moneyning.com/?p=2064#comment-12966 Craig: Yup Redbox doesn't have blu-ray offerings (but I'm sure they will eventually). Changing from blockbuster to netflix is definitely a change for the better. Hopefully as time goes on there will be an even better deal! svend: I welcome the discussion :) Like Carl was saying, there should be a summation in front of the formula so maybe it should be sigma n=0 to infinity (income - spending). That'd work out to be what you were saying (asset - liabilities). It's nice to read success stories like yours because it really helps us work harder :) Hopefully one day we can all say "i have assets of $2m and can control our own time"! Craig: Yup Redbox doesn’t have blu-ray offerings (but I’m sure they will eventually).

Changing from blockbuster to netflix is definitely a change for the better. Hopefully as time goes on there will be an even better deal!

svend: I welcome the discussion :) Like Carl was saying, there should be a summation in front of the formula so maybe it should be sigma n=0 to infinity (income – spending). That’d work out to be what you were saying (asset – liabilities).

It’s nice to read success stories like yours because it really helps us work harder :) Hopefully one day we can all say “i have assets of $2m and can control our own time”!

]]> By: svend http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12964 svend Tue, 13 Jan 2009 01:19:11 +0000 http://moneyning.com/?p=2064#comment-12964 greeting... I have to say that I totally disagree with the wealth formula. Wealth is not about income... it is about assets and passive income. I would say wealth is more accurately written like this: WEALTH = (Assets - Liabilities) + Passive Income. Let me give a few examples. A doctor makes $150,000 per year. Sounds good :) Sounds wealthy :) - NOPE! Doc lives in a BIG house that costs $4000/mon for mortgage, $1,000/mon for taxes. His kids go to expensive private schools. His wife stays at home and drive a Mercedes S500 @ $600/mon. Guess what... After all these expenses, doc has nothing left over... and if he starts loosing patients at his doctors office, his income can go down. Now let's take me... I make $40k-$50k per year as a web designer... and I live well within my means. I drive an Audi A8L (no payments)... I have a Harley Ultra Classic (no payments)... I have a nice condo on a lake in NH ($500/mon mortgage)... etc... etc... Here is where things get interesting... I have a net worth of over $2 million dollars! AND a passive income from my rental properties of over $7,000/mon! (by the way... net worth is assets minus liabilities). Am I wealthy? I think so... I have assets worth over $2m and if I stopped "working" tomorrow... I would still have income of over $7,000/mon for the rest of my life! And most important to me is I control my "time". If I want to take a day or a week off anytime... I can... any month of the year. So to me true "wealth" is as follows: WEALTH = (Assets - Liabilities) + Passive Income + control over your time! Hope this helps stir some good conversation on what is "wealth" :) Svend greeting…

I have to say that I totally disagree with the wealth formula. Wealth is not about income… it is about assets and passive income. I would say wealth is more accurately written like this:
WEALTH = (Assets – Liabilities) + Passive Income.

Let me give a few examples.

A doctor makes $150,000 per year. Sounds good :) Sounds wealthy :) – NOPE! Doc lives in a BIG house that costs $4000/mon for mortgage, $1,000/mon for taxes. His kids go to expensive private schools. His wife stays at home and drive a Mercedes S500 @ $600/mon. Guess what… After all these expenses, doc has nothing left over… and if he starts loosing patients at his doctors office, his income can go down.

Now let’s take me… I make $40k-$50k per year as a web designer… and I live well within my means. I drive an Audi A8L (no payments)… I have a Harley Ultra Classic (no payments)… I have a nice condo on a lake in NH ($500/mon mortgage)… etc… etc… Here is where things get interesting… I have a net worth of over $2 million dollars! AND a passive income from my rental properties of over $7,000/mon! (by the way… net worth is assets minus liabilities). Am I wealthy? I think so… I have assets worth over $2m and if I stopped “working” tomorrow… I would still have income of over $7,000/mon for the rest of my life! And most important to me is I control my “time”. If I want to take a day or a week off anytime… I can… any month of the year. So to me true “wealth” is as follows:

WEALTH = (Assets – Liabilities) + Passive Income + control over your time!

Hope this helps stir some good conversation on what is “wealth” :)

Svend

]]> By: Craig http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12963 Craig Tue, 13 Jan 2009 01:05:47 +0000 http://moneyning.com/?p=2064#comment-12963 @MoneyNingThere is a redbox in my area and have done it before. Thanks for the tip, and I would highly recommend it to most users. I love movies and feel that Netflix has a much larger variety of movies to offer than Redbox, also I like how it comes directly to my mail. I'm comparing Netflix to what I used to do and just go to Blockbuster. If I get 5-6 movies at $12 a month (I have blu-ray, another thing I'm not sure Redbox offers), it's basically renting at $2 a movie opposed to $5 at Blockbuster. Here is the link to Redbox for those users who are interested in learning more: http://www.redbox.com/Home.aspx @MoneyNingThere is a redbox in my area and have done it before. Thanks for the tip, and I would highly recommend it to most users. I love movies and feel that Netflix has a much larger variety of movies to offer than Redbox, also I like how it comes directly to my mail. I’m comparing Netflix to what I used to do and just go to Blockbuster. If I get 5-6 movies at $12 a month (I have blu-ray, another thing I’m not sure Redbox offers), it’s basically renting at $2 a movie opposed to $5 at Blockbuster.

Here is the link to Redbox for those users who are interested in learning more: http://www.redbox.com/Home.aspx

]]> By: MoneyNing http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12962 MoneyNing Mon, 12 Jan 2009 23:50:28 +0000 http://moneyning.com/?p=2064#comment-12962 marci: Do it yourself (DIY) is always a great way to save, not to mention the satisfactory when it's done right! Craig: You should really check out Redbox as well (if they are available in your area). It's really great and you can pay as you rent even though it's only $1 each time. marci: Do it yourself (DIY) is always a great way to save, not to mention the satisfactory when it’s done right!

Craig: You should really check out Redbox as well (if they are available in your area). It’s really great and you can pay as you rent even though it’s only $1 each time.

]]> By: Craig http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12961 Craig Mon, 12 Jan 2009 22:50:13 +0000 http://moneyning.com/?p=2064#comment-12961 You couldn't have made it any easier. Make more and spend less. People need to train themselves to get in the mindset to forget about sales and little purchases they don't really need, or find more efficient ways to it. I am a movie buff and always found myself buying un-needed dvd's. Now I have a Netflix account and never buy dvd's saves money in the long run. You couldn’t have made it any easier. Make more and spend less. People need to train themselves to get in the mindset to forget about sales and little purchases they don’t really need, or find more efficient ways to it. I am a movie buff and always found myself buying un-needed dvd’s. Now I have a Netflix account and never buy dvd’s saves money in the long run.

]]> By: marci http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12960 marci Mon, 12 Jan 2009 19:40:51 +0000 http://moneyning.com/?p=2064#comment-12960 Another old saying: Wealth - It isn't how much you make, it's how much you don't spend. And my favorite tip for not spending money: Do it yourself, Do it yourself, Do it yourself! Or get by without it! Another old saying: Wealth – It isn’t how much you make, it’s how much you don’t spend.

And my favorite tip for not spending money: Do it yourself, Do it yourself, Do it yourself! Or get by without it!

]]> By: MoneyNing http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12959 MoneyNing Mon, 12 Jan 2009 18:44:19 +0000 http://moneyning.com/?p=2064#comment-12959 Carl: You are right. There's a reason why I wasn't the favorite in my math class :) Greener Pastures: Investing the money you would've spent on something like coffee is a great idea! It's another psychological way of helping yourself save and grow your wealth! Good for you! Carl: You are right. There’s a reason why I wasn’t the favorite in my math class :)

Greener Pastures: Investing the money you would’ve spent on something like coffee is a great idea! It’s another psychological way of helping yourself save and grow your wealth!

Good for you!

]]> By: Greener Pastures http://moneyning.com/money-management/wealth-the-two-things-that-matter/comment-page-1/#comment-12958 Greener Pastures Mon, 12 Jan 2009 16:38:18 +0000 http://moneyning.com/?p=2064#comment-12958 I bring my lunch to work now, and stopped buying that morning cup of coffee at work. I bring really great tea bags - so I don't fell deprived, and it's still a lot cheaper! The money i save from the coffee, I eventually use to invest in shares on sharebuilder. I bring my lunch to work now, and stopped buying that morning cup of coffee at work. I bring really great tea bags – so I don’t fell deprived, and it’s still a lot cheaper! The money i save from the coffee, I eventually use to invest in shares on sharebuilder.

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