THE FOUR EQUATION OF WEALTH

First up this will take you to a principle of wealth which statesstates that; "The true measure of wealth is net worth not working inincome". Your net worth is said to be the financial vslue of everything you own,yes really it is needed for you to know how much yu are worth averagely,now that makes us eager to be able to determine it. For you to determine your networth its simple,just add the value of everything you own ,for examples tramsport company, real estate properties,i.e they are all solid assets why because they are they ones actively working and paying you directlythey are solid assets because they have a visible value and can be appreciated in my own language you can likewise call them your actively working assets,just because of thier ability of paying yu directly.liquid assetslike cars,banked money Etc..they can in as much as well be called inactive or sleeping assets mainly because they are for pleasure and consumptions, they dont pay actually.your investments,thry include bonds,stocks Etc..on thr other hamd they can be called,your indirect working assets thats pay on periodic basis, one thing i like about this one is that it may delay but omes it pays drops it drops big,however it still depends on the type of investment and negotiations you make.it can also be called passive incomes.later on we speak better on them. Now add all your assets👉all from splid to liqiud to investments. Solid total #1000 Liquid total #2200 Investment total #1350+ Total amount of assets =#4550 Now subtract all your debtdebt,lets say the debt equity is #1350 Thst equal #4550-1350=#3200. Thats yur net worth you might be wondering why there is debt in it,that is because in business not all money is owned by the compamy you own,it is actually called leveraging. #3200 is a good stable net worth,but if the debt is either equal or more than your actual net worth then you are running in gain loss.but lets leave that for nownow,whst we are jere for the 4 equations of wealth. Which are: 1.Income 2.Savings 3.Investment. 4.simplification. The rich however understand the importimportantimportimportant roles of these 4 and how to use them,which imcludes how highly there factors influence the building of ones not worth as stated earlier. ShalShall we now take a look at them one after the other; Income: This is the normal earning rage of an individual, i.e money earned from active work,income stands in two different dimensional range,which are,working and passive incomes, generally working income means actively labouring for your pay check or cash rewards you are entitled to,this type pays you for what what they think you are worth not really what you are Worth, meaning that they pay you bases on the prediction of performance, examppe your evryday jobs, going to work the office and stuffs like that, that every average person craves for.the other branch is the passive income : these deals with payment as well more so you dont have to labiur much for your entitled pay,yur money does most of the labouring for youthe casual names for this type generally in Nigeria i are "side hustles" examples of side hustle are; flixcash climaxtrend,feed the nation plus+,RECHARGE and get paid Etc...these are mainly investment s ,others can be in form of stocks,shares bonds etc.they are the main part in wealth creation. Savings: this is an essential aspects in building wealth should candidly be ragarded as a lifestyle or habit, but people wrongly assumes thstthat savings are to be more than any other thing even spending but the rich sees it as a selfless act,they see thst saving s are to be aroind 20% and thats the right ideology for saving but but average people thinks more about savings with an 80% deposit to it which is wrong, cos with this apart for spending on mecessities yu are not growing your money,and rule off money says that what goes in comes out and what yu dont give decays,i domt know if you are getting me,the rich thinks that the addition of money into thier bank account is a waste so thry jsut save only a little and think of opportunities to grow thier money thats what leads to our next stage Investment. Investment s: Now from your income you just get out 20%-30% out for saving, having done that you will now think of possiblpossible profitable ways to grow your money, having other bills in mind all you need to do is to search for list of opportunity you can invest in and gain on a timely basis,and sve simplifying your living in the best way possible Simplification: Now that you are almost out of cash after removing yur bills rents investment blah blah blah you need to keep a well stable life attitude / lifestyle that allows you to live decently and comfortably, stop going for luxury just leave a good life and dont buy what isn't needed ,thats where your scale of preference comes out hamdy for you. Note; all of these are from yiur working pay ,if you an enterprise or not you can either invest in other things or you own thing[i.e set up your own]. Finally, are the four equation of wealth articlearticles concerning each of them individually dropping soon .kindly react comment on this poat for either your questions ,contributions or corrections! Thank you