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Before assuming that you aren't rich, understand what "rich" means

https://thinksaveretire.com/what-rich-means/

thinksaveretire.com

Before assuming that you aren't rich, understand what "rich" means
Do you know what rich even means? Don't judge yourself by an imaginary or impossible standard.

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The Definition of Rich

The Definition of Rich

A high income and a regular acquisition of expensive stuff do not necessarily make people rich. People may have a high income, but many won’t survive three months if they are suddenly without their high-paying jobs.

Being Rich is different from being Wealthy.

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Wealthy People and Pseudo Affluence

Wealthy People and Pseudo Affluence

Wealthy people have sustainable access to money, often for a very long period of time. Their habits are now aligned with the wealth that they have incurred.

Pseudo affluence, on the other hand, is what people experience when they are currently earning lots of money and start to believe that they are rich. They pay for their expensive lifestyle with a high amount of borrowed money and are just a job-loss away from being poor again.

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Object Poor

... is a ‘state of excess’ when the stuff we own makes us poor, as the debt we incur has trapped us to keep working our jobs to fund the expensive lifestyle and habits.

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Being Rich

Being Rich

... does not mean having lots of money. There are thousands of stories where people have won the lottery or inherited a large amount of money, only to be on the streets in a few years.

The problem is our definition of being rich may be flawed.

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Accumulated Wealth

Being rich is, at its very core, about being patient with your money and the accumulation of knowledge, experience and your net worth. If you are investing in appreciating assets instead of spending it on liabilities (like a fancy car), you will experience true wealth.

If we curb our restaurant outings and the impulse purchases and sell the homes we don’t live in, investing the money in appreciating assets, we are on the way to maximize our investments.

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Prestige And Freedom

Being rich is about freedom, about independence and about being on your own. If you are filthy rich but still have to do things you hate doing, then that’s not real wealth. You are not poor if you don’t own a BMW and your neighbour does. But you are poor if you are not having the freedom to do what you want in life.

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Money

It isn’t the only factor in being rich, no matter how many articles tell you that. Money is at most a superficial and incomplete representation of wealth, and there are many more ways to think about riches.

Money changes people, and in many cases, makes them less grounded, less content and less human. If you feel unhappy most of the time, maybe equating money with happiness and success is a part of that problem.

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Other Kinds of Riches

  • Friends: offer a kind of value that money cannot.
  • Family and relationships: is not experienced by everyone, and if you have this, you are truly rich.
  • Hobbies: A freedom to do what you love to do is real riches.
  • Community: A great circle of friends, neighbours, family and relatives provide us with the social riches that make us complete.
  • Happy Moments: Positive surroundings, laughs and love from the people around us provide us with untold riches.

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SIMILAR ARTICLES & IDEAS:

The wealthy

The wealthy

Most rich people do not flaunt their wealth: They don't live in high-class neighborhoods or drive expensive cars. They look like you and me.

The rich have a net worth of above $1 millio...

The pseudo-affluent

They buy things that convey success. They want you to know just how much stuff they have by showing off their success.

The pseudo-affluent feel insecure about how they compare with the Joneses and the Smiths. They hold on to the belief that all economically successful people display their success through prestige products.

Characteristics of the pseudo-affluent

The pseudo-affluent generally:

  • They earn a high-income, but spend the majority of what they make.
  • Wear expensive suits or carry expensive purses.
  • Drive high-end luxury or sports cars.
  • Really believe that rich people act rich.

It does not mean that every person that drives a BMW pretends to be rich, but those who do spend the majority of high incomes spend it in a way to display their wealth.

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Education and wealth

College degrees can add significant wealth. The more education you have, the more you’ll earn and the less likely you are to be unemployed. And if you can keep debt low while getting th...

Controlling expenses and wealth

Those who control their spending do much better. This doesn’t mean you have to save on EVERYTHING, just some things. Enjoy your life by spending on what you want here and there, just keep it in line so you have excess to save and invest. Even 10% will make you wealthy over time.

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacte...

You’ve probably heard that time is your greatest investing asset. It’s true. The more investments earn and grow on their own, the greater they become.

Investment value is also greatly impacted by the amount invested.

Wealth Is A Relative Term

Wealth Is A Relative Term

The definition of wealth is personal. It may mean something different to everyone.

To some people, wealth is always going to mean money. But it's not t...

How Much You Need to Become Wealthy In Dollars

According to a Modern Wealth Index Survey, the amount needed to be comfortable in America is $1.4 million. To be wealthy, you'll need a net worth of $2.4 million.

An average pre-tax yearly salary of $389,436 is needed to be in the top 1%, although it varies by state.

Buying Time

We all, rich or poor, have the same 24 hours in a day. But we can use our money to buy more time. For example, by eating out, you don't have to decide what to cook, shop for ingredients, cook, and clean it all up.

If you can carve out more time for yourself, you can use it in other ways that will improve your life. You can start a side hustle, exercise, read, or spend time with family and friends.