Another terrible misconception that many people have is the idea of that income and wealth are synonymous. I'm here to tell you they aren't, and they never have been.

Income is defined as "an opportunity for consumption which is provided within a certain period of time, expressed by some set monetary amount." If you compare this to the definition of wealth , you can clearly see that the two are not the same. Yet, you would be surprised by the number of people, even those who make hundreds of thousands or millions per year, who think the two are the same.

A business owner’s exit is a once-in-a-lifetime transformation. We’re not talking about selling a house or a car. This is a complex process that requires the technical expertise of a team of trusted advisors. The key to any successful business exit is planning. It must begin with personal reflection on the part of the owner regarding what he or she wants out of the business exit. Only then can the owner, along with his advisors, design an appropriate exit strategy. The five (5) planning steps outlined in this article are designed to help business owners define their personal goals, understand all the transfer options and work with an advisory team to execute a successful business exit plan.

Step 1: Define the Personal Goals of the Owner
Since personal goals intertwine so closely with the daily existence of a private business owner, it only makes sense to begin with the basic albeit crucial question, “What do I want to accomplish with my business exit?” The answer seems obvious--make the most money after taxes and fees. Often, however, it isn’t this simple. Owners have nourished and raised their businesses from infancy; they typically care a lot about who will take the reigns. Family members might also be involved in the business. Their fate will also be dependent upon what the business owner ultimately decides.

While most of us are familiar with the word "inflation," few of us actually understand it. When you ask most people to define inflation, they refer to it as being "higher prices." This isn't technically correct. Inflation is actually devaluation (falling value) of our currency.

Because our currency falls in value, prices rise as a result. Because the people who sell us their goods and services have to pay higher prices due to the falling value of the currency, they transfer their losses to us(by raising prices), and if we have our own businesses, we in turn transfer these losses to our own customers.

Knowing how to make money work for you is a large part of financial wealth. Do you know how to manage your personal finances properly? This does not mean knowing how to balance your check book; that is only a very small part of managing finances properly. The truth is statistics show that consumer debt and mortgage debt are now at all time record highs. More people will declare bankruptcy this year than ever before. The housing market is pretty much shot and will not be healthy again for a few years.

At this time, more than ever before, it is paramount that people become better educated about finances and investments. Without this knowledge nothing much will change for you unless you happen to win a lottery or inherit a large sum of money. Financial strains today can cause added stress, relationship problems and even illness.