Читать книгу Money People Deal - Stefan Aarnio - Страница 40

money people deal

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Although home equity is not cash, it can be treated like cash and be used to purchase cash-flowing investment property or to flip real estate for profit. The lines today between cash and credit are blurrier than ever. With credit being offered at record lows, cheap interest rates, cash, and credit in many ways have become the same. When interest rates go back up to their historic levels, cash and credit will look very different again.

Money and wealth are

not the same.

Money and wealth are two words that are easy to confuse. Most people use money and wealth interchangeably and say, My uncle has money or My uncle is wealthy. The meanings on the surface appear to be the same, but money and wealth are vastly different.

Wealth is measured in time;

money is measured in dollars.

The biggest distinction between wealth and money lies in the units of measurement. Wealth is measured in time, and money is measured in dollars. For example, if you are living paycheck to paycheck, you only have two weeks’ worth of wealth. If you stopped working, you could only survive for two weeks. If you owned a large real estate portfolio that provided you with more passive income than you need to live, then you can say that you are infinitely wealthy because you can survive forever without working again.

Why will a nest egg mentality

will leave you broke?

Money is much easier to understand than the intangible concept of wealth. Many people in the world have money but have zero wealth. One example I can think of is the traditional Canadian retiree. Traditional investment advisors preach that you need a “nest egg” for retirement. These advisors will say that the average Canadian needs one million, two