We have heard of Wealth and probably have our own ideas of what it is, turns out most do not so to help clear the air I wrote What is the meaning of wealth?
Well, that answer is not as simple as you would think.
You see everyone has their own ideas about what wealth looks like to them which they have received through school and other areas even friends and parents.
The problem is that the things I may associate with wealth are not necessarily the same things you may associate with wealth.
So let’s explore wealth, I mean really explore it so you can develop in your own mind what wealth means for you.
This is important because unless you can determine what wealth is for you, you will have a hard time achieving it.
In this article, I will cover the meaning of wealth,
What is it?
How do we define it for ourselves?
Why do we crave it?
And most importantly, HOW DO WE GET IT?
Let’s get started…
What Does Wealth Mean?
The Merriam-Webster dictionary describes wealth as:
- an abundance of valuable material possessions or financial assets or resources
- an abundant supply
While that’s a very good definition, it has been my experience in talking to various people that wealth can mean very different things to different people.
We all value different things so it makes sense that we would interpret wealth differently right?
So rather than ask “what does wealth mean”, perhaps we should be asking…
What Does Wealth Mean To You?
As I mentioned, we can all interpret wealth very differently.
There is any number of things that can either alone or in combination mean wealth to individuals. These things could include:
See what I mean?
For example which one of those would you pick over all the rest?
You may find your answer changing as your mind browse through different images.
We each value each of these things differently and that is what makes the meaning of wealth such an individualistic perception.
And what seems to be important one day may change a few days, weeks or even years later.
For me, wealth meant having a wonderful loving family who will always be there for each other.
Today, now that the kids are all moved out I find wealth in writing for a living. I never knew I would enjoy it until my husband introduced me to this program that teaches blogging for free.
It is certainly worth exploring in more depth…
Wealth, Prosperity & Abundance
We have all heard the terms “wealth“, “prosperity” and “abundance“.
I have noticed these words are often used interchangeably yet they are really not at all similar.
When we hear terms such as “prosperity consciousness”, “abundance mentality”, and “wealth is more than money” it only serves to confuse us further.
Let’s examine these terms and see if we can understand wealth just a little bit better.
Most of us were taught that the simple equation of wealth is:
assets – liabilities = net worth
The general public sees it as just how much money or financial assets you have or are worth.
Wealth is measurable and is typically measured by net worth and is more than just money, MUCH MORE.
It is possible to have a high net worth yet be cash poor.
This means that While you have accumulated several high-value assets, your money is essentially tied up in things and would require you to sell these things for cash should the need arise. And if you have to sell them now at a loss would not be good.
While the term prosperity is frequently used interchangeably with wealth it encompasses a much broader meaning and can include health and happiness as well as financial assets.
I am sure we can all think of examples of someone who may be rich but they are unhappy. I think of Ebenezer Scrooge as a perfect example of this.
He was wealthy but certainly not happy.
Prosperity encompasses a much broader, holistic view.
Abundance is more about contentment. It is feeling you have plenty with more than enough for everyone.
When you have a sense of abundance within an individual, family or society, there is less competition for a limited amount of resources. There is no need to take from others because there is plenty for all.
Abundance is the biggest key when it comes to collaboration and partnership.
It is a sense of “win-win” not “win-lose”.
This is much more difficult to achieve within family dynamics but not impossible.
It is my firm belief that true wealth can only be attained by a balanced combination of wealth, prosperity and abundance.
One Big Lesson I Learned
A very good friend of my husband’s did not complete school yet he became so much more successful than any of their other schoolmates.
I remember one time when we visited them I was amazed at the size of their huge house. It was massive, beyond anything I could have imagined yet if you met John on the street you would not assume he was a multi-millionaire.
Nothing about his outward appearance suggests money.
Why? What was so different in John’s life that caused him to rise to such success and at what cost?
Well, you see John had successful entrepreneurial relatives. He spent a lot of time learning from them.
One of them was a very successful restaurant owner/operator.
John went to work for his uncle at a very early age and learned this business inside and out for 8 long years.
He then ventured out and opened his own restaurant in a small house that he converted.
Anyways, John became very successful in his own right and has since opened and sold many restaurants since then.
It is hard work, long hours but he made his success but what did it cost him?
The price was high, in my opinion.
His success cost him his health. He developed problems in his legs from such long hours on his feet. He can barely stand anymore but he got his wealth.
Was it worth it? Only John can answer that…
but…he did advise my husband not to go into the restaurant business.
Ways To Build Wealth
Today there are many ways to build wealth. I believe the fastest way to wealth is through a combination of these strategies.
This would be the first step, in my opinion. The trick is not to look at it as a job but as a stepping stone to the next level.
This job is going to pay your living expenses and help fund some of the other opportunities that will ultimately grow your wealth.
It also takes money to open any type of business even online.
Use the JOB as a temporary means to an end.
Eventually, you want the other things we will discuss to replace the income from your job, giving you true freedom.
Both of us had a job and from there we spent a lot of money figuring out which program will work for us.
Today we both now make a living online and are loving it.
I have learned that owning your own business is key to financial independence.
When you have a job, your income depends on someone else paying you what they think you are worth.
When you own your own business you are truly paid what you are worth.
Not making enough? Develop strategies to increase your income.
Keep in mind, your own business could take many different forms.
It could be a restaurant like John, a shipping company, a local store or even an online business similar to what we have built.
Whatever you choose be sure it is something you are passionate about.
This is important because initially, it will take a lot of work, many hours and you need to be able to stick with it long enough to reap the rewards.
You also should be able to afford to pay for the training and do it part-time because you will still be working until the business brings in enough to replace your JOB.
Starting from the very first job you need to put aside 10% of your income for savings.
We all know stuff happens in life and this savings is so you can deal with that car breakdown or whatever curveball life throws your way.
Trust me it will…
You want to build this saving up to the point that it is equal to 3-6 months’ pay.
This gives you a nice little safety net so you don’t need to go into debt when problems arise.
This is not for a vacation or that new set of golf clubs you always desired. This is only for emergencies.
Again, 10% of your income should be placed into long-term investments.
That means this money is not going to be touched, ever.
It is going to grow, and compound for years.
Someday when you retire you will be able to withdraw a portion of the earnings to live on without ever touching the principal amount.
This is true financial independence.
Creating a source of residual income is imperative to true wealth.
After all, we all only have 24 hours in a day.
By creating a residual or passive income, you can essentially be earning money while you sleep, travel, or do any of the other things you want to do with your time, seemingly giving you more hours in a day.
Don’t think it can happen to you? Think again!
A residual income gives you true freedom.
There are several ways to develop a residual income:
- rent out a room, apartment or house for a weekend
- crowdfund real estate
- create a website selling a product
- write a book
- become an affiliate
- build an online course
- sell your own unique designs online
- become a blogger
As you can see the options are limited only by your imagination.
You know I chose to create a website as one of my choices.
A simple blog-based website doesn’t take a lot of time and it is one stepping stone along the road to the abundant, prosperous and wealthy life I am striving for.
If blogging interests you then go ahead and check out the free training that got me started.
How I Make A Living Online
So, What Is The Meaning Of Wealth?
As we have learned it can actually be a very complicated question.
And the answer directly depends on who you ask because it is open to interpretation.
Because we each define wealth in our own way which can change over time.
Once we have defined wealth we must learn to build it for ourselves.
To build the wealth of your desire you must take action and follow others that have already been there.
And the fastest way to wealth is by following someone else and take action.
Don’t be afraid of failure, there is no such thing, it’s all just learning curves towards your main goals and dreams.
The only way to not reach your dreams is by not taking action to build what you desire.