2 – Four Basic Functions to Wealth

What are the basic functions to wealth? How do you achieve a solid financial foundation when you’re still young and broke? Plenty of literature, blogs, books and podcasts have been dedicated on how to be financially wealthy.

Through my own personal journey, I’ve also simplified my own understanding of money management. Here are the four basic functions to wealth that we all have learned in grade school: MDAS (multiplication, division, addition, subtraction).

Before you start the journey, first and foremost you have to define your journey. That is by determining your end goal and your starting point:

Four Basic Functions to Financial Wealth

Let’s reverse the MDAS by tackling the last function first:

  • Subtract (-) via Reducing Expenses Drastically. Living a frugal mindset, minimalist lifestyle and below your means. 
  • Add (+) via Increasing Income. Create multiple income streams 
  • Divide (/) via Proper Budgeting and Money Management. Be in control of your pie with proper allocation of your time, money and effort
  • (x) is Multiplying Wealth via Investing and Diversifying into multiple investments: bonds, stocks, funds, real estate, bitcoin and the like.

START HERE on the simple Foolproof 5-Step Financial Guide


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