Rent or own? Invest or save? What is the average wealth for my age and am I behind, ahead or even? How can I tell about the economy? What is better, cash, stuff or income? What is considered an investment? These are money smarts questions good that you ask and when it comes to money smarts, who you listen to makes the biggest difference.
(Swear words – 00:06:02 minutes) Comedian Chris Rock jokes about the difference between wealth or rich.
Wealth creates riches, and where rich might just be a single win-fall, like a lottery. If you are highly educated and highly trained, it is considered a form of wealth. There are unemployed doctors and usually they will have to relocate for work but their unique training and experience is a form of wealth that generates riches. Anyone with this type of advantage has a form of wealth.
People consider home-ownership a source of wealth as well. The equity, which is your share of a home to what you owe the bank, can be taken back. When it is, usually years later, the value of the home in over-crowded cities has increased. Usually at a rate equal to or more than government bonds. Eventually we all cash out of our homes [they’re not heirlooms].
In the second phase of his life, post his professional basketball career, that made him rich through his income [you might say ‘cash flush’], Kobe Bryant is talking about investing in ideas that will create riches – he is talking about becoming wealthy. The average person who put money toward their children’s education is also thinking about wealth – their children generate riches.
Three students debate cash versus ‘banking it’.
Young people talk over their first credit-card.