Definition Of Wealth

Wealth 

(Enough Money and valuable resources, to sustain you without working )

Wealth calculation

Cost of Living -Housing Costs, Utility, Insurance, Transportation Costs, Insurance,Tuition, Health, Food.

Liquid Assets- Something that can be quickly converted into cash quickly

Assets- A resource that you hold or maintain that has some reciprocal value.

Debt- Outstanding principal financial obligations to a debtor that is still owed to a debtor.


(Current Cost Of living)*5 Years  + Current Liquid Assets + Assets-Debt



Wealth Calculator

For example:

(COL) * Y - CLA + A -D

(5 years)  ($13,200)*5 + ($5,000+$80,000) - $40,000  = ($21,000)

10 Years  ($13,200)*10 + ($5,000+$80,000) - $40,000  = ($87,000)

So according to the calculations this persons wealth they would have to decrease there living expenses by $21,000 or increase assets by $21,000 + to live off there wealth for 5 years

And for 10 years  they would have to decrease living expenses by $87,000 or increase assets by $87,000 + to live off there wealth for 10 years