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Wealth
Definition
Wealth is the accumulation of valuable assets and resources, measured by net worth rather than income.
Explanation
Wealth differs from income: income is money flowing in, while wealth is what you keep. Building wealth requires spending less than you earn and investing the difference. Wealth provides financial security, flexibility, and the ability to generate passive income.
Key wealth-building strategies include consistent saving, diversified investing, home ownership, entrepreneurship, and avoiding high-interest debt.
Example
A person earning $200,000 per year but spending $210,000 is not building wealth, while someone earning $60,000 and saving 20% is steadily building wealth over time.