The infographic identifies two key equations of wealth, the balance sheet equation of Assets – Liabilities = Equity, which we call the wealth equation and the wealth growth equation, which calculates equity growth over time. The latter equation is equal to the sum of the weighted averages of asset growth and liability growth. According to the infographic, both equations impact wealth and individuals can alter their wealth profile by understanding and adjusting the constituent parts. Improving either equation will deliver positive results, but enhancing both will greatly increase compound growth.
Let us know how you manage wealth and calculate compound growth.
Compound interest is the best solution to get more on what has been invested.. Beside saving investing at the right place is essential.
ReplyDeleteThank you Retta! You are exactly right. The exponential function, and by extension, compound interest, is considered by some to be the most powerful force on Earth.
ReplyDeleteWealth inequality: the extent to which people in a population have unequal net worth, which is the total value of everything one owns, minus debt.guarantor loans
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