By Gary, on October 3rd, 2011
Making your money work for you is called Passive Income. Passive Income is also the most integral definition of wealth.
Do you work for somebody or a company for a wage or salary? If so, that is Active Income. That means you have to be there to earn money. Your actions, thoughts, or presence in some way is required to earn your wage or salary.
Passive income is earning while not being present. Such as dividends and income paid on a principal, starting or buying a business, operating an income producing property, writing a book, making or recording a song. You can also become an associate in a network marketing team.
Think about it. You do not have to be present to earn Passive Income. You are getting paid each month without being present. Therefore:
Wealth = ∑ Monthly Passive Income > Monthly Expenses
Once this occurs, you do not need the Active Income (unless you really like to work for someone else.) This then defines perfectly the term Wealth.
Wealth = Freedom