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When the word “Wealth” comes to mind, what exactly do you picture? Is it fine dining in Italy? Luxury cars? A large accumulation of currency? Time? Making your own rules?
Whatever your answer is, let me ask you this. If a person drives up to the function in a Lamborghini or a Ferrari or any other model difficult to pronounce (Murcielago is fun to say once you figure it out), then are they rich and wealthy? The answer is: not necessarily.
In fact, material objects themselves don’t have to support a mans wealth, and most of them actually pull away from it. You see, looks can be immensely deceiving. The appearance of wealth and true wealth are. Here’s a lesson I learned when I myself became an influencer and had to show myself and parts of my life to the world. I learned that a lot of seemingly rich people and public figures actually use appearance to their advantage.
A lot of consumers look no farther than the surface, so if someone looks to have a fancy car, luxury jewelry or a million followers count, they must be leading a valuable, rich and purposeful life. This is called social proof or credibility. Now here’s the actual lesson I learned.
Remember what I said about the appearance of wealth? Well big businesses as well as small independents can purchase followers or luxury items to make themselves seem authentic. This is false credibility.
False Prophets With False Profits
Look at it like this. You scroll down your timeline and pops up a person with a luxury appearance telling you they can make you rich. I mean, look at them! They must be on to something right? Again, not necessarily. They could have spent their last dime on those items or follower numbers, for the sake of social proof, and it’s enough of an appearance to reel people in so they can actually make some money of their own.
Not everybody’s faking it, but it makes it extremely difficult for the ones that aren’t to be found. We’ve done our research and you can do the same with a simple Google search. Our study shows that the richest human beings live modestly. Driving the same affordable car as the average civilian. And not even batting an eye to money wasters like fast food and overpriced coffee. I’m talking about the billionaires.
Also, those that are wealthy are living happy lives because they’ve defined their wealth in terms of things like money, time, family, or love and have such acquired an abundance of these things. The philosophy of wealth is abundance and security.
No matter how much money you have, the happiest human beings on the planet earth are those that have defined and acquired wealth.
Defining what wealth means to YOU is the most important part of acquiring it. Being aimless only works for Monks I believe, and even they aim for peace of mind. So what is wealth exactly?
What Is Wealth?
I’ll tell you my logic of wealth and then I’ll tell you what it literally is. I’ve quoted the definition of wealth as this:
“Consider your assets as beautiful flowers in a garden, and your liabilities as life-draining weeds. How healthy is your Wealth Garden?”
In its simplest form or more accurately, a financial sense, wealth is assets minus liabilities. Let’s go a little bit deeper, shall we?
Wealth and Money
Wealth and money are often interchangeable. However, they have a square-rectangle relationship. If you’re unaware of what that is, all squares are rectangles but rectangles themselves are not squares.
You see, money can support wealth, but wealth as a whole is not just money. Wealth is the collection of resources we can use. You can have wealth without having money. Money is a way of moving wealth and for this reason they are usually interchangeable. Money intermediates transactions.
Source: The Financial Truth
Wealth Is Relative
As I mentioned towards the beginning of this piece, the definition of wealth will be different depending on who you ask. Even the period of time you live in changes the definition of wealth. Location in the world does too.
For example it is the 21st century, and today in the United States, the mentality behind wealth is often money, foreign cars or luxury items.
Stocks and reveal estate are also common but I’ll just mention these few things. Now let’s rewind say two hundred years or so. The economy in the United States was more centered around agriculture and local trade. This means wealth is defined in your property. Farmland and share cropping, for example. Livestock and vegetable crops like sugar, corn, and mining materials like coal or gold.
Notice I only mentioned one country! Let’s zoom out a bit. Check this out, the World Bank have an estimate that ten percent of the worlds population ( that’s 734 million people, yikes!) live on less than $1.90 a day. Now I’m not gonna get into poverty or trying to guilt trip us all, but understand being wealthy is all about you mindset. A 2004 Toyota Camry held together by duct tape is someone’s dream car in this world. I’ll teach you a saying today. It’s hard to be hateful when you’re grateful.
What Does It Mean to Be Wealthy?
So what does it mean to be wealthy? Wealth goes much deeper and farther than driving the latest Porsche model, which is way easier to say than to spell. True wealth can be broken down into three simple things: having options for how you live your life, being able to leave a legacy, and making an impact through living. The very last reason is why The Wealth Garden came to be, helping others and leaving an impact doing so.
Wealth gives you options
Wealth gives you the freedom to create the life you want to live, and not the life you have to live. Read that again. Work schedules, for example, deprive us of our most valuable currency: Time. Once I was able to quit my job, I had so much time on my hands my head was spinning. A new world opens up for you to explore. You don’t realize the power of controlling your own life until you have it and it feels like the entire world is available to you. That’s because it is, my friend. Like releasing a caged bird.
Wealth helps you leave a legacy
Everyone can leave a legacy regardless of what their income is. Wealth is simply something that expands your reach beyond your family or town. If managed properly, wealth can help you influence entire communities. Taking whatever you have been blessed with big or small and using it to bless others is a beautiful thing. Legacy and generosity transcends time, and it’s what I believe immortality really is. It outlives you and affects people you may never even meet in person.
Being wealthy allows you to give
After taking care of your own basic needs, you can be incredibly generous. When your cup is full, let it overflow into others. Trust, it’s a truly beautiful feeling in your heart. By working hard and building wealth, you’re giving yourself an opportunity to help others.
Unlike income, which is a flow variable, wealth measures the amount of valuable economic goods that have been accumulated at a given point in time.
The concept of wealth is usually applied only to scarce economic goods; goods that are abundant and free for everyone provide no basis for relative comparisons across individuals.
The relative differences in wealth between people are what we usually refer to in order to define who is wealthy or not.
Net worth is the most common measure of wealth, determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts.
Wealth is an accumulation of valuable economic resources that can be measured in terms of either real goods or money value.
Now that you have a better understanding of what wealth is, you can begin on your path to become a wealthy individual for your self and the world.
See you there!