If you’re like most people, your definition of wealth is likely characterized by sports cars, big houses, fancy clothes and expensive dining. That’s how Hollywood portrays wealth after all. However, not all millionaires do it big as we see on the big screen.
I’m not saying that most millionaires don’t live the high life, but a surprising number of them live humble, quiet lives. They drive modest vehicles, live in average-sized homes, and budget just like everybody else.
With so many wealthy individuals living like your average Joe, it makes you think about the true definition of wealth in America. According to a survey taken by Charles Schwab money doesn’t define wealth for most Americans. Here are the results of the survey:
- 28% define wealth as being stress-free
- 18% define wealth as being able to afford all wants
- 17% define wealth as maintaining loving relationships with friends and family
It would seem that most Americans define wealth as living a stress-free life where they can spend more time with friends and family while not worrying about money. In the same survey, participants were asked to focus just on the numbers, and most responded it would take at least $2.4 million to be considered very wealthy.
Therefore, there seem to be two definitions of wealth in America. The first definition focuses on having enough money so you can focus on the important things in life such as spending time with family and living stress-free. The second definition focuses on the amount of money you physically have in your bank account.
Identifying if you’re wealthier than you think
Here are a few quick tips to help you figure out if you’re wealthier than you think. And yes, you can still be considered wealthy even if you don’t have $2.4 million in the bank.
You have little to no debt – debt is a burden that more often than not accrues interest as time goes on. The more people you owe, the less money you have in your bank account which ultimately detracts from your wealth.
You invest your money – wealthy people don’t just save their money, they make investments. Putting your money to work for you is one of the best ways to build up wealth which beats trading hours for dollars any day of the week.
You focus on what’s important – wealth isn’t just defined by money. It’s the freedom that wealth provides that brings you happiness because it frees up your time to spend with your wife, children, parents, grandparents, friends, etc.
Determining how wealthy you are isn’t as cut and dry as most people think. Even if you have all of the money in the world if you don’t have the support of your family and friends, one could say you’re very poor indeed.
Anyone can build wealth. Sometimes it just takes the right nudge to get you going in the right direction. Reach out to me today to inquire about my coaching services. I’ll point you in the right direction so that you can start building true wealth for yourself and your family.