Wealth can be described through\u00a0the accumulation of money, assets, or life experiences. An important equation to wealth building is focusing on increasing assets through savings and investing. This means growing income and\/or lowering expenses.\r\n\r\nTo determine if you\u2019re wealthy use the simple equation associated with net worth such as: Net Worth = Assets \u2013 Liabilities\u00a0\r\n\r\nA similar equation using different words is: Wealth = Income \u2013 Expenses\r\n\r\nBy increasing income or reducing expenses, you\u2019re able to increase the amount of available money to save or invest.\r\n\r\nPhilosophically, wealth is a mindset that requires a understanding and prioritizing what\u2019s truly important in living your dream lifestyle. You can be wealthy in life, experiences and friends without much monetary funds. Conversely, you can be wealthy in cash and assets and unhappy with the direction of your life.\r\nHow to Understand and Gain Wealth\r\nThere are many books, blogs, and gurus telling you what\u2019s needed to obtain wealth. It all seems complicated and impossible. The honest truth is that financial wealth boils down to one equation.\r\nWealth = Money In \u2013 Money Out\r\nYea, it\u2019s that simple. \u200bIncreasing the amount of money you make and or decreasing the amount of money you spend impacts your wealth.\r\nLifestyle Inflation Impact to Wealth Building\r\nLifestyle inflation happens when your spending matches the increase in your income. You\u2019re making more and spending more which results in very little saved to invest or save. Wealthy people desire to save and invest. To make money work for them as opposed to working for it. Instead of spend their days at work exchanging their time for a paycheck, the wealthy use money to make more of it. The goal is freedom to pursue their interest on their terms.\r\nWealth Is Not About Income Size\r\nFor example, John Smith makes $100,000 a year but has expenses totaling $98,000 per year. He manages to save $2,000 of his income.\r\n\r\nOn the other hand, Jane Diaz makes $50,000 a year and saves 10% of her salary. Jane has $5,000 in her savings account.\r\n\r\nWho is the wealthy person in this scenario? Jane is wealthier with $3,000 more saved compared to Joe.