Wealth Creation

 By Sicebise Msengana 

"A person’s wealth is actually defined by how long a period of time he/she can sustain their lifestyle if they stop working. The longer you can go on living your life without working another day, the richer you actually are. Your wealth is therefore defined by three things: (1)your monthly expenses, (2)your liquid assets and (3)your passive income. Your liquid assets refer to how much cash or cash equivalents (like stocks, bonds & fixed deposits) you have to pay for your monthly expenses. Your passive income refers to income that you will continue to receive even after you stop working. This could include interest, dividends, royalties and profits from a business." (CHAPTER 4 HOW THE RICH MANAGE CASH FLOW, Secrets of Self-Made Millionaires, Adam Khoo, 2006)