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Money is a medium of exchange; wealth is a store of value that creates future cash flow
  • Ray defines money as a tool for swapping goods and services, while wealth comprises assets that can be converted into money or generate income.
  • The distinction matters because holding money alone erodes purchasing power in inflationary environments.
  • True wealth accumulation requires owning productive assets—real estate, businesses, or commodities—that retain or increase value.
  • Understanding this split guides investors toward asset‑building rather than cash hoarding.
Ray DalioWTF is Finance00:10:18

Supporting quotes

पैसा क्या है? पैसा अदल‑बदल करने का साधन है और धन का भंडार है। Ray Dalio
Definition of money
उसे धन का भंडार समझना बहुत ज़रूरी है। Ray Dalio
Emphasising the storage aspect

From this concept

Money, Wealth and Assets – The Core Distinction

Ray clarifies that money is merely a medium of exchange, while wealth consists of assets that generate value over time. He differentiates between cash, gold, and productive assets, showing why true wealth is built by owning things that appreciate or produce cash flow, not by hoarding currency.

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