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Monday, April 23, 2012

The Difference between money and wealth

Quick note: Hello everyone, I am back and with few announcements! I am sorry that I  was  gone for 2 weeks  from my blog in order to rest from writing!  I apologize for not informing those who read my blog every week!  In the meantime, I will be back next week!  

As for my book- ( Why it's so hard to forgive us- advanced and revised edition),  I have once again put it on hold until maybe June, but it may change! 

I have a short guest post sent and  written by Linda Terrell who is the owner of repair the vision, which you can find at http://repairthevision.blogspot.com/.  In my opinion,this is a very  short good post and need to be read at all costs by every person! 


                                         The Difference between money and wealth

                                                           By:  Linda Terrell



With this blog I want to give a basic understanding of what money and wealth is and the difference between the two.

To say that someone has a lot of money, even if they have millions of dollars, does not mean that they are actually wealthy.

In 1926 Fredrick Soddy said it best in his book Wealth, Virtual Wealth and Debt;
"Money is not wealth, even to the individual, but the evidence that the owner of the money has not received the wealth to which he is entitled, and that he can demand it at his own convenience..."

We have to first understand that when Money first came about it was just a piece of paper that represented value. Owners of gold would store their gold in bank vaults and in exchange they received a banknote of the same value.
Today money is a piece of paper that is no longer backed by gold, but by a promise of worth. Money is also represented by numbers on a computer that says “John Doe is worth ‘X’ amount of dollars.”  True wealth, is tangible and isn’t based on a persons bank account, which is virtual. Wealth should be measured by productive things such as housing, land, sustenance, energy, skills, and education because these are things that help us to survive.

So to interpret Frederick Soddy’s quote of wealth;
Even the owner of money should know and understand that money either;
1. Represents the value of their actual wealth
Or
2. Can be used to achieve actual wealth,
but money and wealth are not the same.




© Linda Terrell 2012



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