Your Wealth Index

WEALTH INDEX

What is your wealth index?

Most people don’t understand what this means. To some extent it is a phrase that I have adapted from studying wealth. Many of the known writers on wealth and posterity have written about this topic and sometimes I believe it is forgotten for a reason I will cover last.

The wealth index is figured by:
1) How much do I spend on average monthly, yearly to live. (liabilities)
2) How much do I make on average monthly, annually (primary income)
3) What do I have as a flow of income whether I work or not? (assets)
Finally taking and combining all these numbers-
4) Wealth index: How long can I survive if my primary income stopped without having this effect my lifestyle.

This is as basic as it gets, and it really should stay as simple as possible. More shocking then the average savings account factoring in the poor and the wealthy all together last year being -$120 is the idea that if someone gets Laid off, fired, injured or otherwise. . . how long will it take before the family is effected by a decrease in standard of living (or lifestyle).

So many people rush to get the good grades, get out and get the highest paying job, then they don't understand why the American dream isn't complete. Income is not enough, never has been to the wealthy.

Assets, Assets, Assets, every bit as important as a rainy day savings account. It is like one of my mentor says if you are your families only asset and you don’t take your asset into work then that is what is called scary!!!

So how do you develop a growing number of assets if, like me, reducing liabilities seems to feed into a scarcity mind-set and appears counter-intuitive to living life abundantly?

That is a subject for another article but subscribe to the blog and I put out an announcement when we cover some great examples. Also a great resource for these topics is any of Robert and Kim Kiyosaki’s Rich Dad series.

Joshua Andrus
www.hiresite.info