Wealth is the sum of ones assets less any debt. This is also the calculation for net worth and can be easily seen on anyone’s balance sheet. Wealth, however, can be so much more than a bottom line number.
Not many Americans save for retirement or try to create wealth in general. The stories about people not saving for retirement are endless. Perhaps people believe that social security will be enough, but that’s hard to believe given how little this “security” pays.
I believe there’s another reason why it’s difficult to set money aside. The fact is we want the best quality of life that we can afford today. So we don’t worry about tomorrow or at least we put off worrying about it.
Since the middle class’ disposable income is quickly consumed; it’s difficult to slice out enough to invest. People who have high incomes have the disposable resources to invest more easily so average people believe that investing is only for the “rich.”
Saving for the future isn’t so your balance sheet looks better. It’s so one day you can monetize those assets and create an income from it. Creating an income can supplement your social security when you retire and may even allow you to retire early.