Internal Wealth: Net Worth


Wiki > Chapter 2: Tyranny > Measuring Wealth > Internal Wealth: Net Worth

Internal wealth, in contrast, can be measured by the size of our net assets (that is, the value of our property, possessions, investments, and holdings in trusts, after our debts are subtracted). For example: The heir to a family fortune, with a multi-million dollar house, stock and bond holdings, and several expensive cars has a lot of internal wealth, even though he may never have worked for pay a day in his life. On the other hand, a philanthropist who gives to charities (or funds external projects, above) whatever income is not spent on consumable goods like food, gas, and rent (below) does not have a lot of internal wealth.

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