- True wealth? The stuff money can't buy, of course. The stuff we forget about until it's damaged, receding or gone. Health, relationships. Interesting job. A view over the sea. A garden to tend. Kids to play ball with.
- But if we need to talk money, calculate your wealth not by salary nor car but by balance sheet. Otherwise you might become 'big hat no cattle'.
- Your personal balance sheet=assets (house)-liabilities (debts).
- Simple strategies to sort one's finances:
- Save, then spend.
- Know what comes in and what goes out.
- Create and stick to budgets for areas of spending.
- Minimise debt
- Use cash rather than credit cards more often, You feel the appropriate value of money more easily.
- There is a difference between standard of living (stuff) and quality of life (soul). They can equate initially, But chasing too much of the former can ironically damage the latter.