Home - What is Wealth

Wealth in a nutshell

How To Kill A Country With Money !

It's not money that keeps things going, it's what we all do to get that money that is important. Just suppose that everyone in the UK was given £10,000,000 what would happen ? You might think that all their problems are solved, but you would be wrong. Here's how it would play-out :-

If I were to catch a small fish and cook it, I have created a tiny bit of wealth for myself. If I then go and catch a large number of fish, cook them and serve them to my friends, I have created a large amount of wealth for me and my friends - no money required. It's possible to have little money but be very wealthy. On the other hand if you were on a desert island with £1,000,000 you wouldn't be wealthy because there is nothing to spend the money on. If someone turned up with a days food how much would you be prepared to pay for it ?

So, money isn’t really wealth, just a compressed, portable expression of it. Money allows you carry your wealth around in a small wallet instead of a huge truck.

Wealth also follows Maslows hierarchy of needs; if your friends are dying of thirst and/or hunger, they won't be interested in the iPad you've carved out of some driftwood but they might be interested in the spear you made earlier.

Being independent means understanding how to create wealth that other people will find useful and will be willing to pay for.

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