How would you know if you were wealthy ? Could you become wealthy if you didn't have a way of measuring it ?
Wealth is a state of knowing.
One definition of being wealthy is living off the interest off the interest on your capital. You need to know, month by month, week by week, day by day, how much money the interest on the interest on your money is producing for you. Interest can be defined as ROI or return on investment.
To put it more viscerally, you need to know whenever you go out for a meal, the following 3 things :
(a) How much your wealth increased by while eating the meal,
(b) How much the meal has cost you and
(c) The difference between (a) and (b).
So long as (a) is greater than (b) then you are wealthy.
Sunday, July 17, 2011
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