How can one describe the term "wealth accumulation" in simple terms?

Wealth accumulation refers to the gradual increase of assets over time, primarily through saving and investing. This process involves setting aside funds and deploying them in various financial instruments or investment vehicles that have the potential to grow in value. Over time, consistent saving, combined with the power of compound interest or capital appreciation, results in an increase in total assets.

This definition captures the essence of wealth accumulation, distinguishing it from merely choosing to spend less than one earns or striving for high credit ratings, both of which may contribute to a stable financial situation but do not directly imply the growth of one's wealth. The state of financial independence, while a desirable outcome, is broader than just the accumulation of wealth, embodying the idea of having enough resources to meet one's lifestyle needs without relying on active income. Thus, the term specifically emphasizes a continuous process of growth and increase in financial resources.