Monday, April 28, 2014

Chapter 7/8- Wealth Vs. Income

 VS:
Wealth and Income are two very different concepts. Wealth is a person’s net worth, which can be found by adding up the value of someone’s property and subtracting that person’s debts. Income is a flow of money that can come from a variety of places such as wages, rent, interest, an allowance, and even gambling. In this picture I am showing Cracker Barrel and a ledger I created to help determine my wealth (it’s not 100% accurate by any means!). Cracker Barrel is my job; I spend 40+ hours a week there and it is my only source of cash flow. My income is the only way I can purchase things that I want. In the ledger, there are two colors; black for property and red for debts. By adding up the ‘black’ numbers and subtracting the ‘red’ numbers, my wealth can be determined.

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