Conclusion
WHAT IS WEALTH
The great economist, Adams Smith defined wealth as the annual Produce of the land and labour of a society . Adams Smith lived in an agrarian society hundreds of years ago.
In the present day, Wealth is an abundance of items of economic value or the state of possessing or controlling such items.
In summary, Wealth refers to anything that has value.
Money has value, property has value, Businesses has value, expertise has value, skills has value, knowledge has great value.
In other words, contrary to what most people think (that wealth is synonymous with money, property i.e tangible valuables) intangibles like knowledge, skills and expertise are forms of wealth.
TYPES OF WEALTH
Personal Wealth; cars, jewelry, house
Capital wealth; Yields income e.g. stocks, business, real estate
Money; cash savings etc
Other types of wealth; intangibles like skills, expertise, intellectual rights
Indeed, in the 21st century, wealth is increasingly more of intangibles! Nigeria has great tangible wealth in terms of oil, natural resources and fertile land whereas a country such as Israel with scarce natural resources and difficult terrain is known to be wealthier. The reason is that their intangible wealth in terms of knowledge, skills, expertise has been deployed to create tangible wealth!
Wealth is an attitude
Money is a form of wealth, all money is wealth but all wealth is not money.
Wealth is measured by richness.
Richness is a measure of the abundance of wealth.
The opposite of richness is poverty, poverty is therefore a measure of lack of abundance of wealth
Wealth is the opposite of Destitution.
Destitution therefore refers to a state of lack.
The abundance of items of economic value which is present in wealth is lacking in destitution.
Wealth is relative; to place, time. Ownership of a million naira may be regarded as wealth in Nigeria but maybe not in the UK.
WHO IS WEALTHY?
Estimating net worth is crucial in the determination of wealth. In the next post we shall reveal the answer to this question ,when can you say you are wealthy? You shall have the opportunity to calculate your wealth position using the wealth formula.
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