||Last Updated: Feb 6, 2017 - 2:32:04 PM
April is Financial Literacy Month and simply put Financial literacy is
“the ability to understand and make informed and effective decisions
about the use and management of your money.”
And while money is an important part of your everyday life, you
will agree that few subjects are as intimidating or frustrating for you
as money. So here is the second of six new ways of thinking that will
change your financial future -
Think Wealth Creation!
Thinking Wealth Creation is the most important shift in your
thinking that must be made if you are to achieve your goal of financial
independence. And to make this shift in thinking you must understand
what wealth really is.
So the question then is
“What is Wealth?”
Adam Smith in The
Wealth of Nations described wealth as
"the annual produce of the
land and labour of the society." And this
at its simplest is that which satisfies human needs and wants of
And in popular usage, wealth is described as an abundance of items of
economic value, or the state of controlling or possessing such items,
usually in the form of money, real estate and personal property.
wealth is categorized into three principal categories:
And a person is usually considered wealthy when they have
accumulated substantial resources in either of these categories relative
to others around them.
Personal Property, including homes or automobiles;
savings, such as the accumulation of past income; and
wealth of income producing assets, including real estate, stocks, and
Making wealth an important part of our
social and economic well being as it provides the financial safety net
that protects you against unforeseen events that can adversely affect
your living standard of living such as job loss, death of the major
bread winner, sickness or other emergency.
Simply put Wealth is the accumulation of resources that are easily
accessible to you for use with little or no effort and expense. And you
can easily determine your wealth status by answering the question
long can you so without a pay cheque?”
Thinking wealth creation then should be the foundation of your
financial planing as you will only earn a fixed number of pay cheques
during your working years. Therefore you should be focusing all of your
money and efforts into turning those pay cheques into wealth.
So are you thinking wealth creation?
focusing all of your money and efforts on creating wealth?
most person are not thinking wealth creation and this is because they
have grown accustom to earning a pay cheques and getting these pay
cheques at regular interval has given a false sense of security that
these cheques will continue indefinitely.
But you must realize that there will come a time when you will no
longer be receiving a pay cheque and when the pay cheques stop you will
have to depend on the resources that you have accumulated over time to
sustain you - your wealth!
I invite you to take another step to improving your financial
literacy by getting FREE "
Your Financial Secrets for Everyday Living! "
Except from “Financial Literacy- Six New Ways of Thinking That
will Change Your Financial Future” By Glenn s. Ferguson
Copyright © 2010 - Glenn S. Ferguson
Glenn Ferguson is a
Speaker, Coach and Syndicated Writer, helping you to painlessly take
control of your money to create wealth for you and your family. Email
© Copyright 2010 by thebahamasweekly.com
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