How_Money_Works_-_The_Facts_Visually_Explained

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PERSONAL FINANCE

Worth, wealth, and income

How it works

Wealth is the value of a person’s assets, savings, and

investments, while income is the money received

regularly in return for work, from investments, or as a

benefit or pension. Recognising the difference between

the two concepts is key to both building and protecting

wealth. Income that is closely managed and carefully

invested can create wealth over time.

Wealth

Wealth is the value of assets already owned

by a household or an individual. It might take

the form of savings alone, or it can be amassed

from savings, investments, and inheritance.

Indivuals rarely use wealth for day-to-day expenses

unless income has stopped.

Debts

Debt should be paid off as

quickly as possible unless

there are advantages in

spreading repayments.

Savings

The money left after costs

and debt commitments are

met is savings. This could be

invested into assets.

OUTGOINGS WEALTH

Assets

The most useful investments

generate income in addition

to increasing in value.

CREDIT CARD LOANS PROPERTY SHARES

MORTGAGE EDUCATION ART JEWELLERY

INVESTED

INTO

€

€

€

€

€

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