Read? Refining Wealth Formula
To add more conclusion to the definition of net worth and its component parts to compute net worth that most people already know.
Uncle8888 got the idea from Rich Dad. Poor Dad i.e. Assets and Cash Flow.
Wealth = Asset value + Cash flow!
Where Cash flow = Active Income + Investment Income
Asset value is NOT within our control and likely to be volatile when we are holding risky asset class like stocks which are marked to market value on daily basis.
It will affect our emotions. So it is for us to find our own ways and means to reduce our tension and pressure over future financial, economic and market cycles.
For ordinary employees with no great or special talents to climb corporate ladder to reach the top few levels, investing in risky asset class like stocks is potentially the single ......