Relentless self improvement as a way to build natural wealth
What is wealth?
I will for this post define it as the assets you own minus the liabilities. So what is an asset?
An asset is a useful or valuable thing, person, or quality. So a person has qualities which others value and these are their assets. These assets could be anything, from good looks, to being physically fit, to being smart or having a lot of knowledge, to being skilled, or being able to play a sport, make people laugh, run fast, or just get attention. Anything which others find useful, amusing, or which is a cherished quality a person has intrinsically, is an asset.
In financial accounting, an asset is an economic resource. Anything tangible or intangible that can be owned or controlled to produce value and that is held by a company to produce positive economic value is an asset. Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset).
Wealth is something people have intrinsically. If you are reasonably healthy, if you can communicate, if you can learn, if you can make others smile or influence others, then you've got some wealth. Simply being entertaining is a way to turn natural wealth into cash and many people make a career out of that.
Liabilities are the flaws, the costs, the aspects of you that hold you back. These could be mental or physical, this could be reputation, it could be anything which is perceived as a negative against your ability to generate wealth. Liabilities are disadvantages and some people are born into the world with more disadvantages than others to overcome.
Advantages vs disadvantages
Simply knowing yourself and your advantages vs disadvantages can help you realize how much wealth you have. The equation of wealth being your (advantages) minus (disadvantages) can be useful in guiding self improvement. Just as a professional fighter would for example know they have long arms and this can be an advantage, but they might also have a weak chin which is a disadvantage. This professional fighter or martial artist would have to compensate for their weakness by developing their strengths.
In some cases weaknesses aren't so weak and can be turned into strengths. In some cases due to circumstances strengths become weaknesses. So this is fluid and always changing which is why it's important to monitor the current wealth you have starting at the most direct kind of ownership which is that which you have the most control over.
The human body as a direct source of wealth
You are the owner of your body and you get to determine what you do with it because you have the most control over it. The human body is the most direct source of wealth and merely keeping it functioning, healthy, fit, is a way to increase wealth. Anyone who has been sick will know just how important health is to wealth. Any aspect of a human body which can be sold, blood, semen, eggs, all are monetizable and so these are also forms of wealth as determined by market demand So every body which is reasonably health is by definition a source of some wealth just on that.
Legal ownership wealth
The difference between the control you have over your body and the control you have over property which is outside of your direct control is legal. Property rights determine your ability to have legal ownership over securities, real estate, accounts (bank or other), even possibly your Steemit account could be defined both technically and legally. This legal ownership allows you to license content in the case of Steemit, charge rent in the case of real estate, and through these means you can transmute wealth (ownership rights) into money. So whether it's digital such as with art, or it's physical, whether it's tangible or intangible, if you legally have ownership of it then you've got a legally owned asset.
Conclusion
Just to be clear, I am not an expert on wealth generation. I am not one of the most wealthy people, and barely get by. Knowledge itself is a form of wealth, and I simply possess knowledge and some street wisdom. That said, the point is that self improvement is what matters and is more important than any particular job. If a lifestyle does not trend toward improvement of the individual then true wealth is not being generated because true wealth comes from assets minus liabilities.
Productive assets such as cars, farms, AI, all can help people to generate wealth through ownership. This can free people from having to do stuff such as sell their bodies (blood, semen, etc), or sell their time (9 to 5 employment), and allow people to focus on becoming the best person they can be.
As we were talking about , we all have abilities and things we can improve on . We can use the things that generate our wealth and take it to the next level to get more or by working on things we are not good at to have more towards a wealthier you. We are all unique in our own way , no ones going to be good at everything that you throw at them
Yes my point is always improve and grow as a person as a means of building wealth. Consistent improvement on a personal level is really the only thing that seems to work to improve financial health.
Of course some liabilities you can't do anything about. You cannot make yourself taller or run faster. You can gather more knowledge though, so if you read several books a week then you will at least be using your brain. Stephen Hawking is inspirational because he has many disadvantages at this point but still manages to leverage his (brain) knowledge. I admit it's very rare what he has managed to do but it sets an example.
Of course there's things we can not control , and we should realize it . Good thoughts !
If you earn $10,000 per year from a day job, you already have a net worth of $200k in time+knowhow alone. If you invested $200k in an ETF, you would earn that same $10k on average. That might be good news to someone not feeling too rich :-)
You didn't mention taxes.
No, but it wasn't my point. I elaborated a little more in response to @lexiconical below.
Hi @dana-edwards I've published an article about you, check it out, if you can, thanks.
26 Best Steemit Bloggers Of The Day To Follow 31st July 2017
https://steemit.com/advice/@jzeek/26-best-steemit-bloggers-of-the-day-to-follow-31st-july-2017
Can you please shed some light on how any of this makes any sense?
I'm not sure if it does make any sense :-)
If you have $200k to invest, you can probably get some 5-7% profit annually. That is $10k minus taxes.
You also have some time and capabilities, which you can invest however you like. If they earn you $10k per year minus taxes (a day job), it could be calculated a worth simply by comparing it to a normal investment. Thus it could be thought to be worth $200k. If you earn $50k per year, you could think of your time + capabilities being worth a million USD.
I think this is a useful thought, because many people think they are starting from zero, not realizing that they have massive wealth in the form of an ability to create value. Also realizing that investing time should be done at least as carefully as investing money is very important. People wouldn't spend so much time consuming crap, but rather utilize it by interacting with smart people or learning something useful.
damn i am becomming fan of you ! you are right we all have massive wealth in the form of ability yet we still dont realize the power of this blessing wealth 😍😍
I think this is often overlooked and people sacrafice health for wealth and don't see the growth in wealth they were expecting
Awesome ! self improvement as a way to build natural wealth
How were you able to predict that my good looks are my biggest asset, LOL
DaveB
Wow, definitely a motivating post.
Like Aristotle said, "Knowing yourself is the beginning of all wisdom."
Know yourself! Wealth is intrinsic...👍
motivating post
The true wealth in my opinion is not measured by how many asset you have in possesion but how many people change status quo because of your contribution to community
Good post about self-improvement!
That's a wonderful way of describing assets by using a definition from accounting.
Very true. It is much easier to turn around a personal liability than a financial liability by just being positive.
Self improvement is a precursor to an advancement in all other areas of life and can bring about financial success too.