Having lots of money doesn't make you wealthy. It is what you do with the money to generate wealth that is important. Have you heard that "Health is Wealth?" Well, if you use your money to damage your health with over-indulgence, you will get a different result from using it to indulge in moderation, taking care of your health, spreading risks, having contingencies and diversifying your investments. To illustrate this simply, take two people with one million pounds or dollars each over a period of time, lets say 12 months.
The first person simply deposits the entire amount into his or her bank account and just leaves it there earning small amounts of interest from time to time, splashing out and living life to the fullest with all kinds of indulgence.
The second person however gets expert advice from a consultant and leaves half of the money in a bank account just like the first person also earning interest be it half of what the first person earns. However, with the other half of the money they invest in 2 properties, one residential with some flats they rent out and the other a commercial property to run a small grocery business which is attached to a small farm they also bought that supplies the grocery store and other businesses with produce.
After the 12 month period who do you think will be more wealthy? Clearly the second person because their return on investment (ROI) exceeds what they initially invested. Even if say the currency was completely devalued to zero, making their money in the bank worthless, the second person would still have somewhere to live and food to eat. The first person however would be completely wiped out, broke and possibly not only in bad health but homeless!
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