Is wealth really created from merely investing, eliminating credit debt, or somehow increasing our cash flow?
The basic economic principle to creating wealth is that exchange creates wealth. In other words, the more we exchange with one another, the more wealth that is created (this works for money, relationships, health, intellectual gain, etc).
For example, there are only a finite number of dollars in existence, but an infinite number of times we can exchange it. Each of us are passing around the same dollars everyday. Therefore, to be wealthy, we must be willing to exchange or produce more than we receive or consume. Inasmuch as we are always striving to do this, our wealth increases.
Unfortunately, many equate wealth with only financial means. Although I do believe the principles are the same, I have met several rich people who are broke in other areas of their lives. Consequently, many lose their financial resources because other areas have deteriorated, like their health or relationships.
Being wealthy DOES NOT require us to have financial resources before we can provide any real value to the world (Read more and/or listen). More often than not, the financial resources come AFTER the value is produced. Money does, however, increase our propensity to provide more value more quickly. It is a tool to increase our leverage to provide more value, but it is NOT what creates our wealth, even financially-speaking. Listen to know how to create wealth without money.
True wealth comes by continually progressing in ALL areas of life by seeking more ways to serve and provide more value to exchange with others.
