Money and wealth

image0The first and perhaps most important mistake people make is to confuse money for wealth. This is not too surprising when the dictionary itself proposes this misleading definition of "wealth":

1 . a great quantity or store of money, valuable possessions, property, or other riches: the wealth of a city.

It's worth including the "Economic" definition on that page though, it does change things somewhat:

3 . Economics:

  1. all things that have a monetary or exchange value.
  2. anything that has utility and is capable of being appropriated or exchanged.

You'll notice the Economists don't define wealth directly as money, but as the ownership of things that are worth exchanging for other things of value or for money.