Srading.com

Menu
  • Home
  • Markets
    • Forex
    • Stock
  • Fundamental Analysis
    • Economics
    • Money & Banking
  • Technical Analysis
    • Drawing Tools
    • Chart Patterns
  • Tools
    • Online Charts
    • Economic Calendar
    • Interest Rate Today (Live Widget)
    • Forex Market Hours
    • Currency Indexes Chart
    • National Holiday Calendar
    • CoT Chart
    • Quotes
Home
Fundamental Analysis
Economics
Wealth in Economics: Definition and its Categories
Economics

Wealth in Economics: Definition and its Categories

April 1, 2022 Zafari

You Will Continue Reading

Toggle
  • What Is Wealth? 
  • Net Wealth
  • Types of Wealth in Economics
    • Personal Properties
    • Monetary Savings
    • Investments

What Is Wealth? 

Wealth in economics is the total value of assets in a nation. An asset is something that has value, and you own and control it, such as a car.

An asset can be a fixed asset or a current asset. A fixed asset is that asset that lasts longer than one year, and a current asset is that asset that lasts shorter than one year.

Generally, fixed assets are a sizeable portion of a worker’s wealth, such as a house, land, and car. On the other hand, the current assets will compose a small piece of a worker’s assets, such as clothes and stationery.

Net Wealth

Net wealth is the difference between all of your assets and debts. For example: consider that you have a car, house, and a bitcoin mining farm and all of these assets are worth $1m. At the same time, you borrowed $200k that you have not paid yet. Now your wealth is $1m, and your net wealth is $800k ($1m-$200k=$800k).

And, the wealth of a nation is the total wealth of all nationals in a country.

Types of Wealth in Economics

Generally, there are three categories of wealth: personal properties, monetary savings, and investments. 

Personal Properties

Your personal properties refer to your essential assets for living, such as automobiles, homes, and laptops. These things are necessary for a healthy lifestyle. 

Monetary Savings

Monetary savings refer to the unexpended portion of your income kept in a bank or pocket. It is necessary to have savings for unexpected events such as job loss and health issues. Not saving is a big risk in a volatile society.

Investments

Investment is the purchase of an asset for the purpose of wealth creation. A person can invest in the financial market, buying instruments, such as bonds, stocks, and financial contracts. Or, invest in a business that produces goods (for example manufacturing chips) or provides services (restaurant and barbershop). 

Share
Tweet
Linkedin
Pinterest
Reddit
Email
Prev Article
Next Article
Tags:Economics

Related Articles

Current Account Balance: Formula, Deficit, Surplus

Current Account Balance: Formula, Deficit, Surplus

Housing Starts Indicator: What It Is, Importance and Chart

Housing Starts Indicator: What It Is, Importance and Chart

What Is the Retail Price Index? A Simple Guide

What Is the Retail Price Index? A Simple Guide

Average Hourly Earnings Explained

Average Hourly Earnings Explained

Command Economy: Characteristics, Advantages & Disadvantages

Command Economy: Characteristics, Advantages & Disadvantages

Three Basic Economic Questions Explained in Simple Words

Three Basic Economic Questions Explained in Simple Words

About The Author

Zafari

Zafari is a professional trader and has been in the financial market since 2014. He has a bachelor of public economics and an MBA. For some reason, he does not show his face. And he loves you all!

Leave a Reply Cancel Reply

Recent Posts

  • Capitalism: The Definitive Guide
    What Is Capitalism? Capitalism is an economic and political system …
  • Trading Checklist: What It Is, Info-graphic, and …
    What Is a Trading Checklist? A trading checklist is a …
  • Private Equity (PE): What It Is, How …
    Private equity is an investment in a private company. The …
  • Government Spending: The Definitive Guide
    Government spending refers to the government’s total expense and the …
  • Three Basic Economic Questions Explained in Simple …
    Three basic economic questions are: Who answers these questions? The …

Popular Posts

    Srading.com

    QUICK LINKS

    • About
    • Cookies Policy
    • Terms & Conditions
    • Disclaimer
    • Privacy Policy
    • Contact Us

    LATEST POSTS

    • Capitalism: The Definitive Guide
    • Trading Checklist: What It Is, Info-graphic, and PDF
    • Private Equity (PE): What It Is, How It Works, & How to Get In
    • Government Spending: The Definitive Guide
    • Three Basic Economic Questions Explained in Simple Words

    FOLLOW US ON SOCIAL MEDIA

    • Facebook
    • Twitter
    • LinkedIn
    • Instagram
    • Pinterest
    • Telegram
    • Reddit
    • YouTube

    Trading financial assets are risky. Everything you read on this website is just for educational purposes or personal opinions only. Read our DISCLAIMER!

    Copyright © 2025 Srading.com
    Call on WhatsApp

    Ad Blocker Detected

    Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker.

    Refresh
    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By continuing this website or clicking “Accept”, you consent to the use of ALL the cookies.
    Do not sell my personal information.
    Cookie SettingsAccept
    Cookies Policy
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT