When do we think of wealth? What is the first thing that comes to mind? Money? What if I tell you that money is not wealth? Would you believe it?
I had a bright idea a few years back. That smart idea was to kill my debt because I was sick and tired of not controlling my finances. The truth is that my make-believe world of having money led me to this financial mess. One day I realized that money is not wealth.
So what is wealth? What does wealth mean to me? In a previous post, I wrote about wealth and steps to creating a wealthy mindset to control our money and start living. Wealth is value, a mindset to me.
I'm not talking about net worth. I am talking about wealth, wealth to me is more than dollars and cents. It's about living and enjoying life without stressing over money (if that makes sense).
Let me give you an example: when I worked and was a single mom, I made good money; perfect money. I bought things (stuff I didn't even need), but I also worked many hours.
Working tons of hours, I didn't get to enjoy my things; but most importantly, I didn't get to enjoy time with my daughter as much as I wanted to.
All because I wanted to make that money and have money. I wanted to be wealthy. I didn't enjoy much of my time, nor did I use my money wisely. That wasn't wealth at all.
If you are reading this post, you might know of one or more individuals who see money as wealth. Look at our society, for example, we crave money and blame others for not having it. We want the wealthy lifestyle, but not realizing that this is not what wealth is about.
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We are in debt because we want to be wealthy. We have good jobs and can't seem to keep food on our table. We blame and envy others for not being able to live that wealthy lifestyle we all so crave. The reality is that money is not wealth.
I get that most of us have a mortgage and other loans, but if you have credit card debt and are not making any attempt to pay it off, you are not wealthy. You owe money, and the reason you owe money is that you live above your means.
You are living paycheck to paycheck
Over 70% of Americans live paycheck to paycheck. Can you believe that? No matter how much money you get paid each week or your income, if you are living paycheck to paycheck, there is NO WAY you have wealth.
You depend on and are content with the income you have
Many people think that one income is enough. This is something that I learned recently. Why do we have to settle for one income when we can make money from other sources? Make extra money. I know I do with my blog and other creative ways.
You have a good-paying job, but you can't pay your bills.
You find any excuse in the book as to why you can't pay your bills on time. You have a wonderful job, but somehow the cable company or the electric company seems to be “cheating” you and making you pay more than what you owe.
This leads you to underpay your bills. Being irresponsible doesn't mean you are wealthy.
You are seeking comfort, not freedom.
This is something that many of us don't see or care to see. We are comfortable with having debt, lots of debt. We are not seeking that freedom that comes with being debt-free and having control of our finances.
You are neither living nor enjoying your life.
If you are working and busting your behind without any financial goals to pay your bills and maintain what you have, you have this wealth thing wrong.
Earning that extra dough to enjoy it in the future, then you have it right. But if you are working long hours, missing your family, and worrying about your bills, you have no wealth.
Do I love money? Yes, I sure do but living the way we live and enjoy our wealth motivates me to keep going. Saving for what we need and enjoy instead of splurging to show off for others.
When you work hard and enjoy life without the stress of finances, then you have true wealth. It's not always about the money. It's how you make that money work for you.
How do you define wealth? Do you agree that money is not wealth?
Wealth is in most respects more tangible and therefore easier to understand than money. Useful goods and services and, perhaps more crucially, the productive resources needed to create useful goods and services, are wealth.
Money isn't everything since it can't buy us the essential things in life: health and love. One of the most important things in life is your relationships. Friends and family are the people who will be there for you through thick and thin, and they are worth more than any amount of money.
Wealth can be monetary or non-monetary. So money is a form of monetary wealth. But wealth like education, values, skills are non-monetary wealth which doesn't come under the category of money.
Ultimately, wealth is about having the options you want. Not the options that society, the tech community, your peers or anyone else want you to have; but the ones that inspire you and fill you with a sense of purpose about what you're doing with your life. Money can buy some of that optionality.
It's possible to get rich with no money. 79% of millionaires did not receive any inheritance and had to figure out how to become rich with no money on their own. If they got rich with no money, you can get rich with no money.
Common limiting beliefs around money include "money is evil," "rich people are greedy," or "I'm not good with money." These beliefs can create a negative mindset that can sabotage your financial success.
Human beings need money to pay for all the things that make your life possible, such as shelter, food, healthcare bills, and a good education. You don't necessarily need to be Bill Gates or have a lot of money to pay for these things, but you will need some money until the day you die.
Money is important because it allows you to live a better life by giving you options and putting you in charge. Having money and being financially secure also provides you the freedom and options to choose how you want to live and support the things that are most important to you in life.
It allows us to buy what we need and want, pay bills, and invest in our future. It can provide access to resources and opportunities that contribute to our well-being and fulfillment. It can also help us achieve our goals and aspirations, such as traveling, pursuing education, or starting a business.
Finally, 1 Timothy 6:17-18 offers divine instructions for the wealthy among us. The passage reads: “Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment.
This typically includes home equity, savings and a 401(k) account. Wealthy: To be considered well off, a person must be in the 90th percentile, possessing a household net worth of $1.9 million. This level of wealth affords trips, charity donations and college funds for children.
In a nutshell: Income refers to the money an individual earns through work, investments, or other sources. It's often measured over a period of time (e.g., weekly, monthly, yearly). Wealth, on the other hand, refers to the total value of a person's assets (such as property, investments, and cash) minus their debts.
Many believe that if you have true wealth, then you have a lot of money. But, according to dictioinary.com, the definition of wealth is multidimensional : “A great quantity or store of money, valuable possessions, property, or other riches.”
However, it's essential to recognize that money alone does not equate to wealth. The accumulation of wealth goes beyond the amount of money in your bank account. True wealth encompasses various aspects of life, including financial stability, health, relationships, personal growth, and a sense of purpose.
Money illusion posits that people have a tendency to view their wealth and income in nominal dollar terms, rather than recognize their real value, adjusted for inflation. Economists cite factors such as a lack of financial education and the price stickiness seen in many goods and services as triggers of money illusion.
Someone who has $1 million in liquid assets, for instance, is usually considered to be a high net worth (HNW) individual. You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth.
Introduction: My name is Greg Kuvalis, I am a witty, spotless, beautiful, charming, delightful, thankful, beautiful person who loves writing and wants to share my knowledge and understanding with you.
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