Chapter 3

Money Does Not Equal Wealth

Let’s be honest, sometimes we get confused by words and we believe they mean the same thing. Well, guess what? This chapter gives us all the answers we have been looking for when it comes to thinking that cash and credit are the same, or that money and wealth are the same. 

The biggest distinction between wealth and money lies in the units of measurement. Wealth is measured in time, and money is measured in dollars. With easy to understand examples, Stefan shows us that living paycheck to paycheck (doesn’t matter how much the paycheck is), does not imply you are going to be wealthy for the rest of your life. But if you owned a large real estate portfolio instead, that can provide you more passive income than you need to live.

Can you survive forever without working again living off your paycheck? Wealth is measured in time; money is measured in dollars. 

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For centuries, entrepreneurs have taken resources from different sources and have assembled them to create higher value. Great entrepreneurs like Steve Jobs, Henry Ford and Donald Trump have all understood very clearly how to assemble Money, People and Deals together. The intellectual value that these men brought to their ventures was so great that they built their businesses by using none of their own money; this is the skill of the entrepreneur and the fastest way to wealth.