Wednesday, June 29, 2011

A Different Perspective on Wealth

Allan Roth has an interesting article today on viewing wealth as the number of days you can live off of your networth instead of just purely the dollar value of your networth.  He notes that some multi-millionaires would seem poor using this method while some seemingly poor individuals could be wealthy.  It's an interesting way to think about it and a legitimate means of measurement in my opinion.  In fact, I think it is a more useful measurement than the pure networth dollar value.  I remember Robert Kiyosaki used this definition of wealth in Rich Dad, Poor Dad as well.  

A second interesting point Mr. Roth made was that a dollar saved is worth more than a dollar earned.  That idea was probably just as important as the alternative persepctive on wealth, if not more so.  I'll have to expand on that in a later post.

So, without further ado, here's the article.