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. Recognizing 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 can be savings

alone if these are sufficient, or it can be amassed

from savings, investments, and inheritance. Wealth

is rarely used for day-to-day expenses unless

income stops.

Debts

Debt should be paid off as

quickly as possible unless

there are tax advantages in

spreading repayments.

Savings

The amount left after costs

and debt commitments are

met is savings. This should

be invested into assets as soon

as possible.

OUTGOINGS WEALTH

Assets

The most efficient

investments generate income

and boost savings as well as

increasing in value over time.

CREDIT CARD LOANS PROPERTY SHARES

MORTGAGE EDUCATION ART JEWELRY

$

INVESTED

INTO

$

$

$

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