Forex Coral

The Fact about the Liquid Wealth and Net Worth of Billionaires

Jeff Bezos, Bill Gates, and the leagues of people in the billionaire club around the world, are people who are envied by so many and a lot of people just wish that the government could collect all the money they own and share it among everyone in the world. If you are one of them, I understand how you feel and I would not say you do not have reasons for saying this but I will like to share a few things on this post.

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First, there is a difference between liquid wealth and net worth. Millionaires and Billionaires are estimated based on net worth and not liquid wealth. Liquid wealth is the total cash available with a person either in check accounts, or raw money. This is the person a person can spend readily to acquire properties and to purchase goods and services while Net Worth is the total of all assets, shares in companies, properties and liquid wealth. So Jeff Bezos does not have his entire wealth in liquid wealth, rather he has his wealth in both paper and liquid wealth.

Also, this wealth cannot be completely removed from their company as it would crash the companies. If Jeff Bezos takes away his stake in Amazon, just the same way if certain billionaires take away their stakes from Amazon, the company stock will crash, the company might be forced to go bankrupt and people will lose their jobs real bad.

If the billionaires around the world are stripped off their wealth, their wealth won’t be able to take care of the poor around the world for 1 year. So the wealth distribution is actually in one way favorable to the masses and one way it has also helped to distribute wealth.

Net worth is completely different from liquid wealth, the net worth of a person doesn’t mean the person has the entire value of wealth in cash.

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