Tag's: wealth

Income Statement Rich but Balance Sheet Poor

Income statement rich but balance sheet poorPeople are so accustomed to boasting about how much they make but I think that is irrelevant. What is more important is how much of what you make do you get to keep. In other words, you could be income statement rich but balance sheet poor.Income statementThe income statement is the financial statement that tells you what is left over after
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The phases of creating wealth

Money has 4 functions: to survive, to invest, to give and to enjoy. Managing wealth means managing these four functions so we can maximize our happiness. When we overcompensate in one function and neglect the other three, we often feel a tension. To really get the most of wealth, your money should be performing all 4 functions. The 4 phases of building your wealth are survival, accumulation, investing, financial sophistication/ freedom.SurvivalThis
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