Sarah Hudson: There is something that bothers me about the wealth formula. If everything balances so perfectly, how can you increase your wealth?
Assets – Debt = Income – Expenses = Wealth
Accountants think via this formula.
Garret: Sorry, but you are all doomed.
Thomas: Simple as it may sound, the only way to increase your material wealth is to grow both your assets and income. These kinds of transactions simultaneously add wealth in both of your measuring documents – your Balance Sheet and your Profit and Loss Statement.
This is how investing actually pays out.
Sri Humana: This is an accountant’s logic; it is after-the-fact logic, which has worked out in the past. But this information is not so useful in telling you what will or will not bring you great fortune in the future. Remember, growing your wealth requires luck, risk-taking and investing.