Presumably there’s no bank account with x-million or billion $ in it. How is that fortune stored? E.g. if Forbes declares a celebrity is worth $100million how does Forbes know that? And how does that celebrity’s finances work? I know some will be tied up in property, investments, companies, etc. What about disposable income?
In: Economics
For the second question, usually rich people tie up the bulk of their money in investments, mutual funds, real estates, and only a small fraction is kept as cash in a bank. Reason being, rich people know it’s always better to make your money “work” for you instead of wasting away in a bank. As for disposable income, it depends but a couple of common sources:
* if they are still working, they just live off their base salary and save/invest the rest
* they live off the quarterly dividends from stocks and mutual funds. Or live off the interest from savings or bonds.
* they live off rental income from investment real estate properties.
* trust fund disbursements
* some combination of all of the above
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